Answer:
Focault Inc
Income statement for the month of July
Sales $1,120,000
Less Cost of Goods Sold ($630,000)
Gross Profit $490,000
Less Expenses
Selling expenses $252,800
Administrative expenses $100,000 ($352,800)
Net Income $137,200
Step-by-step explanation:
Income Statement shows the profit earned by the company during the reporting period. Profit = Gross Profit (Sales - Costs of Sales) - Operating Expenses.
Note that the amount of the cost of goods manufactured that was sold, that is the the cost of goods sold was already given as $630,000, this made our calculations easier.