E1-7 Preparing an Income Statement [LO 1-2]Home Realty, Incorporated, has been operating for three years and is owned by three i
nvestors. J. Doe owns 60 percent of the total outstanding stock of 9,000 shares and is the managing executive in charge. On December 31, the following financial items for the entire year were determined: sales revenue, $221,000; salaries and wages expense, $108,000; interest expense, $7,400; advertising expenses, $9,575; and income tax expense, $19,600. Also during the year, the company declared and paid the owners dividends amounting to $14,000.Prepare the company’s income statement.
1 answer:
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
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Answer:
$12 billion.
Explanation:
Given: Value added during 2011= $78 billion.
Total sales= $90 billion.
Intermediate goods are the goods used to produce final product and it is not included in the calculation of GDP, however, it is included in the value of final goods.
Now, finding the value of intermediate goods purchased.
Intermediate goods=
⇒ Intermediate goods=
∴ Intermediate goods=
Hence, value of intermediate goods purchased is $12 billion.