Question

Prepare an income statement for Hansen Realty for the year ended December 31, 2017. Beginning inventory was $1,251. Ending inventory was $1,603. (Input all amounts as positive values.) Sales $ 35,200 Sales returns and allowances 1,095 Sales discount 1,155 Purchases 10,662 Purchase discounts 543 Depreciation expense 118 Salary expense 5,350 Insurance expense 2,750 Utilities expense 213 Plumbing expense 253 Rent expense 183 HANSEN REALTY Income Statement For Year Ended December 31, 2017 $

Answer 1

Answer:

HANSEL REALTY

Income Statement

For Year Ended December 31, 2017

Sales_____________________ 35200

Sales return and allowances__ 1095

Sales discount______________ 1155

Net Sales__________________32950

Cost of sales________________10267

Gross Margin______________ 24933

 

Operating Expenses  

Salary expense_____________ 5350

Insurance expense__________ 2750

Plumbing expense__________ 253

Total expenses_____________ 8353

 

EBITDA____________________16580

 

Othee expenses  

Depreciation_______________ 118

Rent expense______________ 213

total other expenses_________ 331

 

Net income_________________16249

Explanation:

Cost of sales

Begining Inventory__________ 1251

+Purchases________________ 10662

-Purchases discount_________ 43

-Ending Inventory___________ 1603

Cost of sales________________10267

 

Sales_____________________ 35200

Sales return and allowances__ 1095

Sales discount______________ 1155

Net Sales__________________32950

Cost of sales________________10267

Gross Margin______________ 24933

 

Operating Expenses  

Salary expense_____________ 5350

Insurance expense__________ 2750

Plumbing expense__________ 253

Total expenses_____________ 8353

 

EBITDA____________________16580

 

Othee expenses  

Depreciation_______________ 118

Rent expense______________ 213

total other expenses_________ 331

 

Net income_________________16249