Question

Exercise 5-10 a-c In its income statement for the year ended December 31, 2020, Lemere Company reported the following condensed data. Operating expenses Cost of goods sold Interest expense $725,000 1,289,000 70,000 Interest revenue Loss on disposal of plant assets Net sales Other comprehensive income $ 28,000 17,000 2,200,000 8,300

Answer 1

Lemere Company
Income Statment
For the Year Ended December 31, 2020
Net Sales			$2,200,000
Cost of Goods Sold			$1,289,000
Gross Profit                                 [$2,200,000 - $1,289,000]			$911,000
Operating Expenses			$725,000
Income From Operations            [$911,000 - $725,000]			$186,000
Other Revenue and Gains
Interest Revenue		$28,000
Other Expenses and Losses
Interest Expense	$70,000
Loss on Disposal of Plant Assets	$17,000
[$28,000 - $87,000 = - $59,000]		$87,000	($59,000)
Net Income / (Loss)                          [$186,000 - $59,000]			$127,000

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Lemere Company
Income Statement
For the Year Ended December 31, 2020
Revenues:
Net Sales		$2,200,000
Interest Revenue		$28,000
Total Revenue                                 [$2,200,000 + $28,000]		$2,228,000
Expenses
Cost of Goods Sold	$1,289,000
Operating expenses	$725,000
Interest Expense	$70,000
Loss on Disposal of Plant Assets	$17,000
Total Expenses		$2,101,000
Net Income / (Loss)                          [$2,228,000 - $2,101,000]		$127,000

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Lemere Company
Comprehensive Income Statement
For the Year Ended December 31, 2020
Net Income / (Loss)                           [Refer income statement]	$127,000
Oher comprehensive income	$8,300
Comprehensive Income            [$127,000 + $8,300]	$135,300