Question

P4-03A.Stat Question 7 Not complete Marked out of 14.00 P Flag question Multi-step Income Statements The adjusted balances of Fletcher Distributors on December 31 are shown below. FLETCHER DISTRIBUTORS Adjusted Balances December 31 Cash $15,200 Accounts receivable 110,200 Inventory 84,000 Prepaid insurance 2,400 Supplies 6,400 Delivery equipment 80,000 Accumulated depreciation 35,000 Accounts payable 70,000 Common stock 100,000 Retained earnings 42,000 Sales revenue 785,800 Cost of goods sold 513,400 Salaries expense 118,000 Rent expense 40,000 Supplies expense 8,400 Utilities expense 4,000 Depreciation expense 16,000 Insurance expense 4,800 Income tax expense 30,000

Answer 1

	FLETEHER DISTRIBUTION
	Income Statement
	Dec-31
	Sales Revenue		$      7,85,800
	Less: cost of goods sold- Equipment		$    -5,13,400
	Gross Profit		$      2,72,400
	Operating Expenses:
	Salaries and Wages expenses	$    1,18,000
	Rent expenses	$        40,000
	Supplies expenses	$          8,400
	Utilities expenses	$          4,000
	Depreciation expenses	$        16,000
	Insurance expenses	$          4,800
	Total Operating Expenses		$      1,91,200
	Income before income tax		$         81,200
	Less: Income tax expenses		$        -30,000
	Net Income		$         51,200
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