Question

lings Diner, Inc., for the da format similar to that Problem 8 Use the following information to prepare an income statement for Wings Diner. Ime year ended March 31, 20XX. Use the proper statement heading and a format simila used in the chapter for Deb's Steakhouse, Inc. S 50,000 Payroll 9,500 Employee Benefits Cost of Food Sold 30,000 Cost of Liquor Sold 15,000 Food Sales 100,000 Utilities 5,000 Depreciation 10,000 Income Taxes 300 Property Insurance 6,000 Supplies Expense 3,000 Rent 8,750 Liquor Sales 50,000 Interest 7,000 Advertising 2,250 Property Taxes 2,000

Answer 1

Wings Diner, Inc.

Income statement

For the year ended 31st March 20XX

Sales -
Food sales	100,000
Liquor sales	50,000	150,000
Cost of goods sold -
Cost of food sold	30,000
Cost of liquor sold	15,000
Supplies expenses	3,000	48,000
Gross profit		102,000
Operating Expenses -
Payroll	50,000
Employee Benefits	9,500
Utilities	5,000
Property Insurance	6,000
Rent	8,750
Interest	7,000
Advertising	2,250
Property Taxes	2,000
Total Operating Expenses		90,500
Net Income Before Depreciation		11,500
Less - Depreciation		10,000
Net Income Before Income Tax		1,500
Less - Income Tax		300
Net Income		1200