Question

Exercise 5-10 a-c (Video) In its income statement for the year ended December 31, 2020, Indigo Company reported the following condensed data. 501A Video Operating expenses Cost of goods sold Interest expense $743,300 1,323,900 72,410 Interest revenue Loss on disposal of plant assets Net sales Other comprehensive loss $32,350 18,260 2,407,100 8,200 score Results by

Answer 1

Ans. 1	INDIGO COMPANY
	INCOME STATEMENT
	For the Year Ended December 31, 2020
	Particulars	Amount	Amount
	Net Sales		$2,407,100
	Less: Cost of goods sold		$1,323,900
	Gross profit		$1,083,200
	Less: Operating expenses		$743,300
	Operating income (EBIT)		$339,900
	Other income (expenses)
	Add: Interest revenue	$32,350
	Less: Interest expenses	-$72,410
	Less: Loss on disposal of plant assets	-$18,260	-$58,320
	Income before taxes		$281,580
	Less: Income tax		$0
	Net income		$281,580
Ans. 2	INDIGO COMPANY
	INCOME STATEMENT
	For the Year Ended December 31, 2020
	Particulars	Amount	Amount
	Revenues:
	Net sales	$2,407,100
	Interest revenue	$32,350
	Total revenue (a)		$2,439,450
	Less: Expenses:
	Cost of goods sold	$1,323,900
	Operating expenses	$743,300
	Interest expenses	$72,410
	Loss on disposal of plant assets	$18,260
	Total expenses (b)		$2,157,870
	Net Income (a - b)		$281,580
	*In a single step income statement, all revenues are added and all expenses are added then
	the difference is calculated.
Ans. 3	INDIGO COMPANY
	Statement of Comprehensive Income
	For the Year Ended December 31, 2020
	Particulars	Amount
	Net income	$281,580
	Less: Other comprehensive loss	$8,200
	Comprehensive income	$273,380
	*Other comprehensive income is added and other comprehensive loss is subtracted from
	net income to compute the comprehensive income.