Question

Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015.

Accounts Payable $ 145,000
Accounts Receivable 15,000
Cash (balance on September 1, 2014) 75,000
Cash (balance on August 31, 2015) 80,000
Common Stock 100,000
Dividends 10,000
Equipment 755,000
Notes Payable 30,000
Office Expenses 95,000
Prepaid Rent 50,000
Retained Earnings (beginning) 410,000
Salaries and Wages Expense 955,000
Salaries and Wages Payable 170,000
Sales Revenue 1,660,000
Supplies 25,000
Utilities Expense 530,000
Other cash flow information:
Additional investments by stockholders $ 34,000
Cash paid to purchase equipment 40,000
Cash paid to suppliers and employees 1,490,000
Repayments of borrowings 155,000
Cash received from customers 1,661,000
Cash received from borrowings 5,000
Dividends paid in cash 10,000
Required: 1. Prepare an income statement for the fiscal year ended August 31, 2015. CHEESE FACTORY INCORPORATED Income Statement

Answer 1

The answer to this question can be defined as follows:

Step-by-step explanation:

INCORPORATED CHEESE FACTORY

Statement of sales

August 31, 2015 , during the year ended

Revenues:

`\text{Sales income} = \$ 1660000 \\\\ \text{Gross income}= \$1660000\\\\\text{Expenditures: benefits or salaries } 955000\\\\\text{Utilities Prices} = 530000\\\\\text{Costs of office}= 95000\\\\\text{Gross Spending}= 1580000\\\\\text{Net income}= \$ 80000`