mgordo1
Mar 9, 2011, 07:42 AM
Can you help me create an income statement for the following:
Jones Corp during calendar year ending December 31, 2010 had sales of $200,000 with a gross profit that was 50% of sales and selling expenses that were 15% of sales. Administrative Expenses $12,000 and Interest Expense $5,000. During the year, Jones Corp sold a piece of its operating equipment that currently has a book value $9,000 for $15,000. Also , during the year Jones Corp dumped a product line with sales of $20,000 and expenses of $26,000. Assets used to produce the discontinued product line were sold for $15,000-had a cost of $100,000 had been depreciated (no salvage). Additionally during the year a fire swept through the offices destroying $40,000 of furniture with a recovery of only $20,000 from the insurance company for loss. Assume the tax rate of 20%
Jones Corp during calendar year ending December 31, 2010 had sales of $200,000 with a gross profit that was 50% of sales and selling expenses that were 15% of sales. Administrative Expenses $12,000 and Interest Expense $5,000. During the year, Jones Corp sold a piece of its operating equipment that currently has a book value $9,000 for $15,000. Also , during the year Jones Corp dumped a product line with sales of $20,000 and expenses of $26,000. Assets used to produce the discontinued product line were sold for $15,000-had a cost of $100,000 had been depreciated (no salvage). Additionally during the year a fire swept through the offices destroying $40,000 of furniture with a recovery of only $20,000 from the insurance company for loss. Assume the tax rate of 20%