Question

Prepare the income staterment for East Aquatic Company for the most recent year. Use the calculation of cosl of goods sold, cost of goods marufactured, and the amounts below. Assume that the company sold 37,000 units of its product at a price of S15 each during the Click the icon to view the amounts.) (Click the icon to view the calculation of oost cf goods manufactured. ) ':Click the con to vicw the calculation of cost of goods sold ) East Aquatic Company Income Statement For Current Year Less

Answer 1

East Aquatic Company
Income Statement for the current year
Sales		$    555,000.00	[37000 units*$15]
Less: Cost of Goods Sold		$ (232,500.00)	[Goven in the ques]
Gross Income		$    322,500.00
Less: Indirect Expense
Indirect Labour	$ 43,000.00
Marketing Exxpense	$ 77,000.00
General and Admin. Expense	$ 28,500.00	$ (148,500.00)
Net Income		$    174,000.00
Assumption
1. We assume that insurance on plant is not a premium expense. So it will affect Balance Sheet
2. We assume that depreciation, repair and maintenance expense is also deducted in Balance Sheet Assets.