Question

Elite Accessories Inc. Budgeted Income Statement For the Year Ending December 31, 2016 4 Revenue from sales (from Exhibit 9) 5 Cost of goods sold (from Exhibit 14) $13,336,000 9,047,780 - $ 4,288,220 $1,190,000 695,000 (1,885,000) $ 2,403,220 7 Gross profit 8 Selling and administrative expenses: 9 Selling expenses (from Exhibit 15) 10 Administrative expenses (from Exhibit 15) 11 Total selling and administrative expenses 12 Income from operations 13 Other income: 14 Interest revenue 15 Other expenses: 16 Interest expense 17 Income before income tax 18 Income tax 19 Net income $ 98,000 (90,000 8,000 5.2411,220 600,000) $ 1,811,220

income statement

Answer 1

Preparation of Income Statement for the year ended December 31, 2016: Elite Accessories Inc. Income Statement For the Year Ended December 31, 2016 2$ 2$ Sales Revenue 13,336,000.00 (9,047,780.00) 4,288,220.00 Less: Cost of Goods Sold Gross Profit Margin Less: Operating Expenses: Selling Expenses Administratiove Expenses Total Operating Expenses Operating Income Non Operating Income & Expenses: 1,190,000.00 695,000.00 2$ (1,885,000.00). 2,403,220.00 98,000.00 (90,000.00) 2$ Interest Revenue Less: Interest Expense 2$ Total Non Operating Income (loss) 8,000.00 2,411,220.00 Income Before Taxes 2$ 2$ (600,000.00) 1,811,220.00 Less: Income Taxe Net Income