I am having a very hard time understanding how to prepare an income statement. Here is the information I have...
*Prepare an income statement for the year ended December 31, 2006. (Assume that 7,500 shares of stock are outstanding*
Accounts Payable... $35,000
Accounts Receivable.. $65,000
Advertising Expense.. $15,000
Cash... $19,500
Supplies Expense... $46,000
Rent Expense... $10,000
Utilities Expense... $3,000
Income Taxes (30% of income before taxes)..?
Miscellaneous Expense.. $4,400
Owners' Equity... $140,000
Salaries Expense... $61,000
Fees (revenue)... $384,000
I know the income statement is broken up into revenues and expenses, but I have no idea how I find the income taxes and where those go, as well as where the "7,500 shares of stock are outstanding"...
If anyone can help, I'd greatly appreciate it! Thanks!