Question

Financial statement data for Pat's Pigpens, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the ycar ending December 31, 2018 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 Gross sales Interest expense Lease payments Management salaries Purchases Research and development Returns and allowances Taxes 399,500 2,478,900 200,100 2,358,700 1,487,500 14,258,900 274,500 598,400 2,898,700 5,978,600 357,800 32,500 875,600 1. What was gross profit from Pat's Pigpens' income statement for the year ending December 31, 2018? 2. What was operating profit (i.e., EBIT) from Pat's Pigpens' income statement for the year ending December 31,2018? 3. What was profit before taxes (i.e., EBT) from Pat's Pigpens, income statement for the year ending 4. What was net income from Pat's Pigpens' income statement for the year ending December 31, 2018? 5. Bennings, Inc. paid out total dividends equal to $11,241,200 in 2018. If Jennings reported Retained December 31,2018? carnings of $320,868,600 for 2017 and Retained earnings of $350,290,000 for 2018, what was Jennings reported net income in 2018?

Answer 1

As per rules I am answering the first 4 subparts of the question

Income Statement

Gross Sales		14258900
Less: Cost of goods sold
Opening stock	2478900
Add: Purchases	5978600
Less: Closing stock	2358700
Less: Returns and allowances	32500	6066300
Gross Profit		8192600
Less: Operating expenses
Advertising	399500
Depreciation	200100
General and admin expenses	1487500
Lease	598400
Salaries	2898700
R&D	357800	5942000
Operating Income		2250600
Interest		274500
EBT		1976100
Less: Taxes		875600
Net Income		1100500

1:

Gross Profit

8192600

2:

Operating Income

2250600

3:

EBT

1976100

4:

Net Income

1100500