Question

NICOLE'S GETAWAY SPA (Forecasted) Income Statement For the Year Ended Year 3 Straight-Line Units-of- Production Double- Declining Balance Operating Expenses: Other Operating Expenses Total Operating Expenses 이 이 이

please help me complete this income statement, thank you!

-i don't understand why someone commented it's incomplete. at least tell me what i'm missing, thank you.

Answer 1

With above details , not possible to derive Income Statement . With help of above information , only depreciation expenses can be derived under three method of depreciation but to derived Income Statement , need :

1) Revenue 2) Cost Of goods sold

We can only derived Operating Expenses as Depreciation amount .

Purchase a Hydrotherapy Tub System
Machine purchsed ($)	16,000
Useful life( Yrs)	5
Residual Value ($)	1,000
Depreciaiton Base($)
(Cost - residual Value)	15,000
Estimate product Life ( Hr)	10,000
Year 1 ( Hr)	2,400
Year 2 ( Hr)	2,300
Year 3 ( Hr)	2,200
Year 4 ( Hr)	2,100
Year 5 ( Hr)	1,000
Total Hr	10,000

	Straight Line - Depreciation($)		3,000	( Year 1- 5)
	(Cost - Salvage Value )/ Useful life
	('16000-1000)/5
	Unit of Production ( Hr basis)
	5 Year Depreciation ($)		15,000
	Proportionate basis -( Year 1 hr / total Hr )* Depreciation Base
	Year 1 ( Hr)( 2400/10000)*15000		3,600
	Year 2 ( Hr)( 2300/10000)*15000		3,450
	Year 3 ( Hr)( 2200/10000)*15000		3,300
	Year 4 ( Hr)( 2100/10000)*15000		3,150
	Year 5 ( Hr)( 1000/10000)*15000		1,500
	Total Depreciation($)		15,000
	DDB ( Double Declining Method )
	Formula to get Rate ( 2/n)== N == Number pf year
	N= no of year == 5
	rate		40%
	Table
	Opening Balance ($)		Depreciation ($)		Closing Bal($)
Year1	16,000		6,400		9,600
Year2	9,600		3,840		5,760
Year3	5,760		2,304		3,456
Year4	3,456		1,382		2,074
Year5	2,074		829		1,244
Total Depreciation($)			14,756

Unfortunately without revenue and Cost of Goods Sold number - we can not able to generate Margin . Please provide above number to generate Income Statement