The preparation of the fourth quarter, October 1st to December 31st profit and loss statement for T-Shirt Company, INC., is as follows:
T-Shirt Company, INC.
<h3>Profit and Loss Statement</h3>
For the fourth quarter ended December 31
Sales revenue $286,400
Cost of goods sold (42,960)
Gross profit $243,440
Rental income 1,800
Total income $245,240
Expenses:
Freight-out $45,824
Salaries 60,000
Insurance Expense 150
Advertising expense 2,950 (108,924)
Income before taxes $136,316
Income tax rate (15%) 20,447
Net income $115,869
<h3>What is the profit and loss statement?</h3>
The profit and loss statement also known as the income statement is a periodic financial statement that summarizes the revenues, costs, and expenses for the specified period.
The statement is used to determine the profit or loss during the stated period.
<h3>Data and Calculations:</h3>
Number of shirts sold = 14,320
Selling price per t-shirt = $20
Sales revenue = $286,400 (14,320 x $20)
Product cost per t-shirt = $3
Cost of goods sold = $42,960 ($3 x 14,320)
Freight-out to customers = $45,824 ($4 x 14,320 x 80%)
Salaries Expense of employees for the quarter = $60,000 ($80,000 x 3 x 1/4)
General Liability Insurance Expense = $150 ($600/4)
Rental income for the quarter = $1,800 ($600 x 3)
Web = $900 ($300 x 3)
Print = $400 ($200 x 3)
Television = $1,500 ($500 x 3)
Advertising expense = $2,950
Income tax rate = 15%
Learn more about the profit and loss statement at brainly.com/question/24498019
