Final answer:
To create a traditional income statement for Maryville for June, begin with sales and deduct COGS, operating expenses, and non-operating expenses, to calculate operating profit. Then, apply the effective income tax rate of 30% to find the net income. Specific expense figures are required to calculate the exact net income.
Step-by-step explanation:
To prepare a traditional (absorption) income statement for Maryville for the month of June, we need to start with the sales figure and deduct all costs and expenses incurred during the month related to the production of goods or services that were sold. These will include the costs of goods sold (COGS), operating expenses such as selling, general and administrative expenses, and any non-operating expenses. After we subtract these from the sales, we get the operating profit, to which we then apply the effective income tax rate to arrive at the net income.
Example of a Traditional Income Statement
- Sales: $2,448,000
- Less: Cost of Goods Sold (COGS)
- Gross Profit: (Sales - COGS)
- Less: Operating Expenses
- Operating Profit: (Gross Profit - Operating Expenses)
- Less: Non-operating Expenses
- Profit Before Tax: (Operating Profit - Non-operating Expenses)
- Less: Income Tax (30% of Profit Before Tax)
- Net Income: (Profit Before Tax - Income Tax)
The exact amounts for COGS, operating expenses, and non-operating expenses are not provided in the question, and hence cannot be factored into the example.