Question

Use the following Year 3 data: Other Selling and Administrative Expenses $ 1,052,000 Other Expenses 249,300 Sales Revenue 4,887,000 Advertising and Promotion Expenses 553,350 Salaries and Wages Expense 2,527,800 Income Tax Expense 167,350 Interest Expense 114,750 Required: Prepare the annual income statement for Kvass, Inc.

Answer 1

Answer:

$222,450

Explanation:

Computation of annual income statement for Kvass Inc. is shown below

Sales revenue

$4,887,000

Less:

Selling and admn expenses

($1,052,000)

Other expenses

($249,300)

Advertising and promotion expenses

($553,350)

Salaries and wages expenses

($2,527,800)

Income tax expenses

($167,350)

Interest expense

($114,750)

Net income

$222,450