The Income Statement is a financial statement that reports the revenues, expenses, and net income or loss that resulted from a firm’s operations over an accounting period.
<u>Explanation:</u>
The Income Statement is one of the company’s center financial reports that confers their gain and loss over a remarkable time. The gain or loss is circumscribed by practicing all revenues and deducting all liabilities from both working and non-operating exercises.
The income statement is a vital element of a company’s execution reports that need to be yielded to the Securities and Exchange Commission (SEC). An income statement presents worthy insights into a company’s operations, the performance of its management, underperforming areas and its production applicable to industry rivals.
Answer:
Cost of goods sold =$61,5300
Gross Profit = $144,700
Explanation:
Given the information:
- Purchase : $630,000
- Purchase Returns and Allowances $25,700
- Prchases Discounts $10,900
- Freight-In $18,300
- beginning inventory of $45,000
- ending inventory of $64,600
- net sales of $760,000
As we the, the fomular for total Goods Available for Sale
=
Beginning Inventory + Purchases + Freight-In - Purchase Returns and Allowances - Purchases Discounts
= $45,000 + $630,000 + $18,300 - $25,700 - $10,900
= $67,9900
=> Cost of goods sold = Total Goods Available for Sale - ending inventory
= $67,9900 - $64,600
= $61,5300
=> Gross Profit = Net sales - Cost of goods sold
= $760,000 - $61,5300
= $144,700
Hope it will find you well.
Answer:
$1,375
Explanation:
Given the information above, the Ending inventory = Units available - Units sold
Units available = 10 + 25 + 30 + 70 = 80
Units sold = 60
Ending inventory = 80 - 60
Ending inventory = 20
Cost of ending inventory under FIFO
= (15 × $70) + (20 - 15) × $65
= $1,050 + $325
= $1,375
Therefore, the ending inventory cost using FIFO is $1,375
Answer: Liabilities
Explanation: The Balance sheet which is also known as the statement of financial position represent or shows an entity financial position at a single point in time. That is, it shows the Owners equity(capital), Liabilities and Assets of a firm for a financial period, usually a year.
On the other hand, the income statement shows and entity profitability over a period of time
