Question

Financial statement data for Delicious Dishes, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2016 and use your constructed statement to answer the following 4 questions. Advertising Beginning of year inventory Depreciation End of year inventory General and administrative expenses 16,400 128,700 5,200 124,600 21,900 Gross sales Interest expense Lease payments Management salaries 824,500 21,700 12,000 104,600 524,700 12,600 Purchases Research and development Returns and allowances 3,600 35,900 Taxes

Answer 1

Income Statement of Delicious Dishes Inc For the year ending 31-12-2016
	$	$
Sales Revenue	824,500.00
Less : Returns & Allowances	3,600.00
Net Sales		820,900.00
Opening Inventory	128,700.00
Purchases	524,700.00
Less : Closing Inventory	124,600.00
Cost of goods sold		528,800.00
Gross Profit		292,100.00
Less :Operating expense :
Research and development	12,600.00
Management Salaries	104,600.00
Lease payments	12,000.00
General & Administration expenses	21,900.00
Depreciation	5,200.00
Advertising	16,400.00
Operating expense		172,700.00
Operating Profit (EBIT)		119,400.00
Less : Interest Expense		21,700.00
Profit Before Tax		97,700.00
Less : Taxes		35,900.00
Net Income		61,800.00