1. Please show all work and write out equation
Prepare an income statement from the following data ($000):
Cost of goods sold 450
Interest expense 30
Depreciation expense 120
Net sales 990
Interest income 80
Income tax expense 70
Advertising expense 100
General and administrative expenses 150
Solution
Ans.
Net income = (Revenues + gains) - (Losses + Expenses)
1. 1st method
For total income we need to some more calculation as follow's
2. 2nd method
Particular's Amount's (,000) Amount's (,000)
Net sales $990
Cost of goods sold $450 ($450)

2. Gross profit $540
Less other opereting expense
Advertising expense $100
General and administrative expenses $150 $250
Net profit from operetion $190