Question

E1-6 01-1 Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the owner of Campus Connection, which specializes in items that ini At the end of January of the current year, you find (for January only) this information: a Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situatie of 2.500 b. With the help of a friend (who majored in accounting you determine that all of the goc January cost $70,000 to purchase. C. During the month, according to the checkbook, you paid $37.000 for salaries, rent, sup ing, and other expenses, however, you have not yet paid the $900 monthly utilities for store and fixtures. Required On the basis of the data given (disregard income taxes), what was the amount of net incon Show computations. (Hint: A convenient form to use has the following major side capt from Sales, Expenses, and the difference-Net Income.) Essentials Business Commu

Answer 1

Sales ($150,000+2,500)		$152,500
Expenses:
Cost of goods sold	$70,000
Salaries, rent and other expenses	37,000
Utilities	900	(107,900)
Net income		$44,600