Question

Fill in the blanks in the following separate income statements A through E.

a) Revenue: $, Expenses: $, Net Income: $______
b) Revenue: $, Expenses: $, Net Income: $______
c) Revenue: $, Expenses: $, Net Income: $______
d) Revenue: $, Expenses: $, Net Income: $______
e) Revenue: $, Expenses: $, Net Income: $______

Answer 1

a) Revenue: $R₁, Expenses: $E₁, Net Income: $N₁

b) Revenue: $R₂, Expenses: $E₂, Net Income: $N₂

c) Revenue: $R₃, Expenses: $E₃, Net Income: $N₃

d) Revenue: $R₄, Expenses: $E₄, Net Income: $N₄

e) Revenue: $R₅, Expenses: $E₅, Net Income: $N₅

Step-by-step explanation:

In an income statement, revenue represents the total income generated, expenses denote the costs incurred, and net income is the difference between revenue and expenses. To fill in the blanks, each letter corresponds to a unique set of values.

For instance, in statement a), let Revenue be $R₁ and Expenses be $E₁. The Net Income ($N₁) is calculated as the difference between revenue and expenses (Net Income = Revenue - Expenses). Similar calculations apply to statements b), c), d), and e), where Revenue, Expenses, and Net Income are represented by $R₂, $E₂, $N₂; $R₃, $E₃, $N₃; $R₄, $E₄, $N₄; and $R₅, $E₅, $N₅, respectively.

These representations create a template for income statements with placeholders for the actual financial values specific to each scenario. The subscript notation (e.g., R₁, E₁, N₁) emphasizes that each set of values belongs to a distinct income statement. This approach provides a structured and clear format for organizing financial information, aiding in analysis and comparison across different periods or entities.