sexy_sassy25
Jan 29, 2008, 07:51 AM
how do I prepare an income statement for haaki shop.
sales... $800,000
cost of goods sold.. 300,000
Gross margin... 500,000
selling and administrative expenses
selling expense $250,000
administrative expense 160,000 410,000
net operating income 90,000
the surfboards sell, on the average, for $400 each. The department's variable selling expenses are $50 per surfboard sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its surfboards from a supplier at a cost of $150 per surfboard.
please help me. I am stuck
sales... $800,000
cost of goods sold.. 300,000
Gross margin... 500,000
selling and administrative expenses
selling expense $250,000
administrative expense 160,000 410,000
net operating income 90,000
the surfboards sell, on the average, for $400 each. The department's variable selling expenses are $50 per surfboard sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its surfboards from a supplier at a cost of $150 per surfboard.
please help me. I am stuck