Question

[The following information applies to the questions displayed below.] The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). Accounts Payable $ 4,315 Accounts Receivable 660 Aircraft Fuel Expense 9,500 Cash 3,050 Common Stock 1,260 Dividends 35 Equipment 15,330 Income Tax Expense 270 Interest Expense 210 Landing Fees Expense 3,900 Notes Payable 6,990 Repairs and Maintenance Expense 2,000 Retained Earnings (as of December 31, 2017) 7,195 Salaries and Wages Expense 3,400 Supplies 720 Ticket Revenues 21,100 Prepare an income statement for the year ended December 31, 2017. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).)

Answer 1

Step-by-step explanation:

Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:

In the simplest form, the net income = Total revenue - total expenses

= Ticket Revenue - aircraft fuel expense - income tax expense - interest expense - Repairs and Maintenance Expense - Salaries and Wages Expense - Landing Fees Expense

= $21,100 - $9,500 - $270 - $210 - $2,000 - $3,400 - $3,900

= $1,820

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below: