Question

11. In its income statement for the year eded December 31, 2014, ZY company reported the ff condensed data.
Operating expense =725,000
cost of goods sold =1256,000
interest expense =70,000
interest revenue =33,000
Loss on disposal of plant assets=17,000
net sales =2,200,000
Prepare an income statement?

Answer 1

Income Statement for the Year Ended December 31, 2014

Net Sales: $2,200,000
Cost of Goods Sold: $1,256,000
Gross Profit: $944,000

Operating Expenses:
- Operating Expense: $725,000
- Interest Expense: $70,000
- Loss on Disposal of Plant Assets: $17,000
Total Operating Expenses: $812,000

Operating Income: $132,000

Other Income and Expenses:
- Interest Revenue: $33,000

Net Income: $165,000