The following balance were taken from the books of(giiiksljrnited on December 31, 2020 Interest Income $140,000 Cash

Question

The following balance were taken from the books of(giiiksljrnited on December 31, 2020 Interest Income $140,000 Cash $80,000 Sale Revenue $2,240,000 Accounts Receivable $244,000 Prepaid Insurance $32,000 Sales Return and Allowances $236,000 Allowance for Doubtful Accounts $12.000 Sales Discounts 080.000 Land $160,000 Equipment $320,000 Building $230,000 Cost of goods Sold $1.008,000 Accumulated depreciation - equipment $64,000 Accumulated depreciation - buildings $46,000 Notes Receivable $250,000 Selling expenses $320,000 Accounts Payable $280.000 Bonds Payable $162,000 Administrative expenses 8160.000 Accrued Liabilities 532.000 Interest expense 5100,000 Notes Payable $160,000 Loss-other (Storm) 5248,000 Depreciation expense 5100.000 Assume a total effective tax rate on all items is 25%

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XYZ Ltd. Income Statement For the year ended December 31, 2020 Revenue Sales revenue $2,240,000 Less: Sales return and allowances 236000 Sales Discounts 80000 316000 Net Sales Revenue $1,924,000 Cost of goods sold 1008000 Gross Profit $916,000 Operating Expenses Selling expense 320000 Administrative Expense 160000 Total Operating expenses 480000 Income from operations $436,000 Non-operating Income and (Expenses): Interest Income 140000 Interest Expense -100000 Loss-other (Storm) ($248,000) Total Non operating income and expenses -208000 Income before income taxes $228,000 Income taxes ($228,000*25%) $57,000 Net Income $171,000

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The following balance were taken from the books of(giiiksljrnited on December 31, 2020 Interest Income $140,000 Cash $80,000 Sale Revenue $2,240,000 Accounts Receivable $244,000 Prepaid Insurance $32,000 Sales Return and Allowances $236,000 Allowance for Doubtful Accounts $12

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Archived Solution

XYZ Ltd.
Income Statement
For the year ended December 31, 2020
Revenue
Sales revenue		$2,240,000
Less:
Sales return and allowances	236000
Sales Discounts	80000	316000
Net Sales Revenue		$1,924,000
Cost of goods sold		1008000
Gross Profit		$916,000
Operating Expenses
Selling expense	320000
Administrative Expense	160000
Total Operating expenses		480000
Income from operations		$436,000
Non-operating Income and (Expenses):
Interest Income	140000
Interest Expense	-100000
Loss-other (Storm)	($248,000)
Total Non operating income and expenses		-208000
Income before income taxes		$228,000
Income taxes ($228,000*25%)		$57,000
Net Income		$171,000