Question

Construct a simple income statement that calculates net income given the following information: Cost of goods sold: 200 Income taxes: 100 General and administrative expenses: 50 Depreciation expense: 150 Revenue: 1,000

Answer 1

Step-by-step explanation:

The construction of the simple income statement is presented below:

Sales revenue $1,000

Less: Cost of goods sold -$200

Gross profit $800

Less: Operating expenses

General and administrative expenses -$50

Depreciation expense -$150

Profit before tax $600

Less: income tax -$100

Net income $500