A stock exchange is a facility where stock brokers and traders can buy and sell securities such as shares of stock and bonds and other financial instruments
The equation for the income statement is Revenues - Cost of goods = Net income. The three major items reported on the income statement are net income, gross profits, and operating income.
The income statement is a statement of the profits and losses of a firm. It consists of three income statements. The Net income is derived by deducting the expenses of the firm from its revenues (Net income = Revenue - Expenses). It may also be calculated by adding the operating income with the non-operating items.
Gross profit is arrived at by subtracting the expenditure made on the products that were sold from the revenue of a firm. The Operating income is the result of subtracting the operating expenses from the gross profit.
To learn more about income statement : brainly.com/question/14308954
#SPJ4
Answer:
Sarah inventory $ 123.75
Luke inventory $ 125.00
Explanation:
<u>Sarah</u>
125 dollars x 1% discount = 1.25 dollars
Inventory:
125 nominal - 1.25 discount = 123.75
Sarah will enter the inventory for the price it paid to acquire it which is 123.75
<u>Luke</u>
As look paid after the discount period the inventory will be valued at nominal:
125 dollars nominal
<u>the charge is considered interest expense</u> it will not be capitalize through inventory.
