Question

The following information was extracted from the 2020 financial statements of Sheridan Company:

Income from continuing operations before income tax $703500
Selling and administrative expenses 478000
Income from continuing operations 502000
Gross profit 1343000
Required:
a. Assuming that there are no other revenues and gains, amount reported for other expenses and losses is ________.
O $24000.
O $201500.
O $225500.
O $161500.

Answer 1

$161500.

Step-by-step explanation:

a normal income statement should be:

total revenue x

- COGS (y)

gross profit = $1,343,000

- selling and administrative expenses = ($478,000)

EBIT = $865,000

- interests paid, other expenses & losses = ?????

income before taxes $703,500

- taxes (t)

net income

other expenses and losses = $865,000 - $703,500 = $161,500