Question

The following information was reported in the December 31, 2012, financial statements of Southeast Airlines, Inc. (listed alphabetically, amounts in millions).

Accounts Payable $4,155
Accounts Receivable 700
Aircraft Fuel Expense 9,900
Cash 3,090
Common Stock 1,280
Dividends 15
Equipment 15,810
Income Tax Expense 310
Interest Expense 250
Landing Fees Expense 4,300
Notes Payable 7,010
Repairs and Maintenance Expense 2,400
Retained Earnings (as of December 31, 2012) 7,895
Salaries and Wages Expense 3,460
Supplies 740
Ticket Revenues 23,100

Prepare an income statement for the year ended December 31, 2012.

Answer 1

Income statement or profit and loss account is a statement that tell the profit of the company. The detail of income and expenses are also given in this statement. The income statement of Southeast Airlines, Inc. is given below.

Southeast Airlines, Inc.

Income Statement

For the year ended at December 31, 2012.

Dollars ($) in Millions

Ticket Revenues 23,100

Salaries and Wages Expense (3,460)

Repairs and Maintenance Expense (2,400)

Landing Fees Expense (4,300)

Aircraft Fuel Expense (9,900)

Operating Profit 3,040

Interest Expense (250)

Profit Before Tax 2,790

Income Tax Expense (310)

Profit After Tax (Net profit) 2,480