Question

CULATOR FULL SCREEN PRINTER VİRSION BAC Continuing Cookie Chronicle 13 The comparative balance sheet of Cookie & CoffeCreations Inc. at October 31, 2018 for the years 2018 and 2017, and the income statements for the years ended October 3 and 2018, are presented below COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31 Assets Cash 2018 2017 $22,324 $5,550 Accounts receivable 3,250 7,8977,450 2,710 Inventory Prepaid expenses Equipment 5,800 6,050 102,00075,500 (25,200) (9,100) 116,071 $88,160 Accumulated depreciation Total assets Liabilities and Stockholders Equity Accounts payable Income taxes payable Dlvidends payable 1,150 $2,450 9,2517,200 27,000 27,00 ,250128 Salaries and wages payable 188 Interest payable Note payable-cuetportion 4,000 te paysble-ong term portion 57 AM

Answer 1

Cookie & Coffee Creations Inc.

Comparative Income Statement

For the year ended October 2017 and 2018

	2018		2017
	Amount ($)	Percent	Amount ($)	Percent
Sales	485,625	100.0%	462,500	100.0%
Cost of Goods Sold	222,694	45.9%	208,125	45%
Gross Profit	262,931	54.1%	254,375	55%
Operating Expenses
Salaries and wages expense	147,979	30.5%	146,350	31.6%
Depreciation Expense	17,600	3.6%	9,100	2%
Other Operating Expense	48,186	10%	42,925	9.3%
Total Operating Expenses	213,765	44%	198,375	42.9%
Income from Operations	49,166	10.1%	56,000	12.1%
Other Expenses
Interest Expense	413	0.1%	0	0
Loss on disposal of plant assets	2,500	0.5%	0	0
Total other expenses	2,913	0.6%	0	0
Income before Income tax	46,253	9.5%	56,000	12.1%
Income tax expense	9,251	1.9%	14,000	3.0%
Net Income	37,002	7.6%	42,000	9.1%

Cost of goods sold

2018 : (222,694 / 485,625) * 100 = 45.9%

2017 : (208,125 / 462,500) * 100 = 45%