xrechegg Study! Guided S/XAG income statement-Goc LUS Secure | https://edugenwil

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xrechegg Study! Guided S/XAG income statement-Goc LUS Secure | https://edugenwileyplus.com/edugen/student/mainfr.uni LUS Kimmel, Accounting, 6e dy & Practice Gradebook ORION Downloadable eTextbook n Assignment URCES Exercise 5-8 (Part Level Submission). In its income statement for the year ended December 31, 2017, Cullumber Company reported the following conde ment a expenses Salaries and wages 650s on disposal of plant 187,875 4,972,500 56,250 360,000 247,500 assets Cost of goods sold Interest expense 2,220,750 Sales revenue 159,750 146,250 697,500 Income tax expense Sales discounts Utilities expense Lev Interest revenue Depreciation expense Prepare a multiple-step income statement. (List other revenues before other expenses.) CULLUMBER COMPANY

Explanation / Answer

Solution: CULLUMBER COMPANY Income Statement For the Year Ended December 31, 2017 Sales Sale Revenue 4,972,500 Less: Sales discounts 360,000 Net sales 4,612,500 Cost of Goods sold 2,220,750 Gross profit 2,391,750 Operating Expenses Salaries and wages expense 1,046,250 Depreciation expense 697,500 Utilities Expense 247,500 Total operating expenses 1,991,250 Income from operations 400,500 Other revenues and gains Interest revenue 146,250 Other expenses and losses Interest expenses 159,750 Loss on disposal of plant assets 187,875 347,625 Income before income taxes 199,125 Income tax expense 56,250 Net Income 142,875 Working Notes: Notes: To understand the calculation done , please follow the alphabetically shown in 1st column below CULLUMBER COMPANY Income Statement For the Year Ended December 31, 2017 Sales a Sale Revenue 4,972,500 b Less: Sales discounts 360,000 c=a-b Net sales 4,612,500 d Cost of Goods sold 2,220,750 e=c-d Gross profit 2,391,750 Operating Expenses f Salaries and wages expense 1,046,250 g Depreciation expense 697,500 h Utilities Expense 247,500 i=f+g+h Total operating expenses 1,991,250 j=e-i Income from operations 400,500 Other revenues and gains k Interest revenue 146,250 Other expenses and losses l Interest expenses 159,750 m Loss on disposal of plant assets 187,875 n=l+m 347,625 o=j+k-n Income before income taxes 199,125 p Income tax expense 56,250 q=o-p Net Income 142,875 Please feel free to ask if anything about above solution in comment section of the question.

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