Question

Income Statement 6 0 Data Table A set of financial statements for Rabbit Company follows: (Click to view the financial statements.) Administrative expenses 65,000 Requirement Fill in the missing amounts (indicated with question marks). Operating income.... Interest expense Requirement 1. Fill in the missing amounts. Begin by completing the income statement. 5,000 28,000 Income tax expense Net income ........ Rabbit Company Balance Sheet At December 31, 2012 Rabbit Company Income Statement For the Year Ended December 31, 2012 Sales.................. $ 500,000 Cost of goods sold ....... Gross profit on sales ...... 140,000 Administrative expenses .. 65,000 Operating income ........ Interest expense......... 28,000 Income tax expense ... 13,000 10,100 Cash Accounts receivable ..... Inventory Equipment........ $ ? Accounts payable ... $ 13,000 Note payable ....... 46,000 973,000 Contributed capital.. 610,000 Net income ........ Retained earnings .. Total 1,122,000 Total Enter any number in the edit fields and then click Check Answer. Print Done

Answer 1

1.  

sales	500,000
cost of goods sold (sales - gross profit) (500,000-140,000)	360.000
gross profit on sales	140,000
administrative expenses	65,000
operating income (gross profit - administrative expenses) => (140,000-65,000)	75,000
interest expense	5,000
income tax expense	28,000
net income (75,000-5000-28000)	42,000

2.

balance sheet;

cash	90,000	accounts payable	13,000
accounts receivable	13,000	note payable	10,100
inventory	46,000
equipment	973,000	contributed captial	610,000
		retained earnings	488,900
total	1,122,000	total	1,122,000

cash = total assets - accounts receivable - inventory - equipment

=>1,122,000-973,000-46,000-13,000

=>90,000

retained earnings = total - accounts payable - notes payable - contributed capital

=>1,122,000-13,000-10,100-610,000

=>488,900