Question

Given the following information, prepare in good form an income statement for the Dental Drilling Company. (Input all amounts as positive values.) Selling and administrative expense $ 112,000 Depreciation expense 73,000 Sales 489,000 Interest expense 45,000 Cost of goods sold 156,000 Taxes 47,000

Answer 1

Answer:

Dental Drilling Company's Income Statement for the year shows Net Income of $56,000.

Please note that:

• figures in bracket represent negative values
• solution in excel format is attached for your reference

Explanation:

                                            Dental Drilling Company

                                                Income Statement

Sales                                                                    $489,000  

Less: Cost of Goods Sold                                    $(156,000)

Gross Profit                                                             $333,000  

 

Less: Expenses  

Selling and Administrative Expenses                     $(112,000)

Depreciation Expenses                                             $(73,000)

 

Earnings before Interest and Tax                      $148,000  

 

Less: Interest Expense                                             $(45,000)

 

Earnings Before Tax                                              $103,000  

 

Taxes                                                                     $(47,000)

 

Net Income                                                              $56,000  

Download xlsx