The following information was extracted from the Stone Company records: - Gross Sales: 232,566 -...

Question:

The following information was extracted from the Stone Company records:

- Gross Sales: 232,566

- Gross Profit: 87,990

- Sales Discounts: 1,125 (= 1/2% of Net Sales)

- Total Operating Expense: 88,440

- Selling Expense: 33,560

Complete the following:

Gross Sales

Sales Discounts

Sales Returns & Allowances

Net Sales

Cost of Goods Sold

Gross Profit

Operating Expenses

Gen & Admin Expenses

Selling Expenses

Total Operating Expenses

Net Income (Loss)

Income Statement

An income statement is a financial report that shows the company's profitability on the past calendar or fiscal year. This is the first financial statement to be prepared due to ease of preparation, income or corporate taxes deadline, and the bottom line will be carried forward to the balance sheet as part of the retained earnings.

Answer and Explanation:

Gross Sales | 232,566

Sales Discounts (1,125)
Sales Returns & Allowances 0
Net Sales 231,441
Cost of Goods Sold (231,441 - 87,990) (143,451)
Gross Profit 87,990
Operating Expenses
Gen & Admin Expenses (88,4440 - 33,560) 54,880
Selling Expenses 33,560
Total Operating Expenses 88,440
Net Income (Loss) (450)

Learn more about this topic:

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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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