Answer:
NET INCOME = $180,067
Explanation:
CRANE COMPANY
Income statement for the year ended December 31, 2017
PARTICULARS $ $
<u>Sales</u>
Sales Revenue 3,646,500
Less Sales Discount <u> 264,000</u>
Net Sales 3,382,500
Cost of Goods Sold <u>1,628,550</u>
Gross Profit 1,753,950
Operating Expenses
Salary and wages Expenses 767,250
Utility expenses 181,500
Depreciation Expenses <u>511,500</u>
Total Operating Expenses <u>1,460,250</u>
Income from operation 293,700
Add: Other Revenue
Interest Revenue <u>107,250</u>
400,950
Less: Other expenses and losses
Interest expenses 41,250
Loss on disposal of plant assets <u>137,775 (179,025)</u>
Income before income taxes 221,925
Income Expenses Tax <u>41,250</u>
NET INCOME <u>$180,067</u>