Question

You have been provided with the following account balances for Webber Ltd. for the years ended November 30, 2020, and 2021 2021 2020 Advertising expense $308,000 $278,000 Cost of goods sold General and administrative expenses 1,747,760 1,466,920 112,000 106,000 Income tax expense 83,000 103,000 Interest revenue 5,600 5,600 37,000 Rent expense 27,300 Sales revenue 3,121,000 2,821,000 Utilities expense 87,000 75,200 Wages expense 501,000 388,000 (a) Prepare a multi-step, comparative statement of income for Webber for 2020 and 2021 Webber Ltd Statement of Income 2021 2020

Answer 1

Webbar Ltd
Statement of Income
For the years ended November 30, 2011 and 2022
	2011	2022
Sales Revenue	$   3,121,000	$   2,821,000
Less: Cost of goods sold	$   1,747,760	$   1,466,920
Gross profit	$   1,373,240	$   1,354,080
Operating expenses
Advertising expense	$      308,000	$      278,000
General and administrative expenses	$      112,000	$      106,000
Rent expense	$        37,000	$        27,300
Utilities expense	$        87,000	$        75,200
Wages expense	$      501,000	$      388,000
Total operating expense	$   1,045,000	$      874,500
Income from operations	$      328,240	$      479,580
Non-operating revenues (expenses)
Interest revenue	$           5,600	$           5,600
Income before income tax	$      322,640	$      473,980
Income tax expenses	$        83,000	$      103,000
Net income	$      239,640	$      370,980

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