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INCOME STATEMENT FOR THE YEARS ENDED 31 December 2018 and 2019 2018 2019 Sales 3,603,600
INCOME STATEMENT FOR THE YEARS ENDED 31 December 2018 and 2019 2018 2019 Sales 3,603,600.00 6,126, 120.00 Cost of goods sold 3,007,200.00 5,162,405.00 Gross profit 596,400.00 963,715.00 Operating expenses Depreciation expense 18,900.00 116,960.00 Interest expense 62,500.00 176,000.00 Other expense 368,400.00 765,891.00 Income before tax 146,600.00 (95,136.00) Taxes 58,640.00 Net income (loss) 87,960.00 (95,136.00)
Expert Solution
|
Common size income statement |
||||
|
2018 |
2019 |
|||
|
Particular |
Amount ($) |
% |
Amount ($) |
% |
|
Sales |
36,03,600 |
100.00 |
61,26,120 |
100.00 |
|
Cost of Goods Sold |
30,07,200 |
83.45 |
51,62,405 |
84.27 |
|
Gross Profit |
5,96,400 |
16.55 |
9,63,715 |
15.73 |
|
Operating Expenses |
||||
|
Depreciation Exp. |
18,900 |
0.52 |
1,16,960 |
1.91 |
|
Interest Expenses |
62,500 |
1.73 |
1,76,000 |
2.87 |
|
Other Expenses |
3,68,400 |
10.22 |
7,65,891 |
12.50 |
|
Income before tax |
1,46,600 |
4.07 |
(95,136) |
(1.55) |
|
Taxes |
58,640 |
1.63 |
NA |
NA |
|
Net Income (Loss) |
87,960 |
2.44 |
(95,136) |
(1.55) |
The main conclusion from the above common size income statement is that the income before tax in 2018 was positive 4.06% of the sales which is negative in 2019 1.55% in 2019, which is due to increase in non operating expenses in 2019.
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