Question

Describe and illustrate the financial statements of a merchandising business.

Answer 1

& 12000 of operating income finally non operating income coces reported at $6,000 giving the business a total of a 1800 o net income by breelleing the information down into steps, uses con see that of $18,000 of het income $12000 of it is from daily operation and $ 6,000 coces Contributed by other element such as interest revenue that do not ! I directly relate to the Company daily business Sales cost of goods sold I Gross profit 75,000 Operating expenses. | selling cripenses | Advertising crpense Commission expenses 6.2,000 $5,000 7000 Administrative expenses office supplies expenses office oquipment expenses Total operating expenses operating income 3,500 2, 500 6ooo 13,000 12,ooo Interest revenues Gain on sales of investment Interest expenses losg from low sait to Tatce witnon -operating remsa come 5.ooo 8000 (500) 1,500) Gooo $ 18,000