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    ejohnson4256's Avatar
    ejohnson4256 Posts: 10, Reputation: 1
    New Member
    		  
    #1

    Aug 20, 2011, 08:20 PM
    Prepare income statement
    Using the infoormation below, I have to Prepare an income statement for the year ended December 31, 2009. (Assume that
    11,000 shares of stock are outstanding.)

    Accounts payable.. . $ 143,000
    Accounts receivable.. . 95,000
    Advertising expense.. . 14,500
    Cash.. . 63,000
    Supplies expense.. . 31,500
    Rent expense.. . 12,000
    Utilities expense.. . 2,500
    Income taxes (30% of income before taxes)..
    Miscellaneous expense.. . 5,100
    Owners' equity.. . 215,000
    Salaries expense.. . 78,000
    Fees (revenues).. . 476,000


    This is what I came up with. Are my calculations correct? Is there anything I missed or need to correct? I don't feel like I've done this correctly. Thank you in advance!

    INCOME STATEMENT
    Pickard & Associates
    Year ended December 31, 2009
    (amount in dollars)

    Revenues
    Fees $476,000

    Expenses
    Advertising 14,500
    Supplies 31,500
    Rent 12,000
    Utilities 2,500
    Miscellaneous 5,100
    Salaries 78,000
    Total Expenses 143,600

    Income taxes (30% of income before taxes) 99,720

    Net income 332,400

    Share price $30.22
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Aug 21, 2011, 07:43 AM
    You forgot EBIT, which is Earnings before income taxes, which is revenues minus expenses.

    The rest looks good.
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