below income statment i have prepared. all amount put based on new business star
ID: 2739539 • Letter: B
Question
below income statment i have prepared. all amount put based on new business startup. coul dyou please advice me or help me if anything needs to remove from current year or previous year. if yes then i would like to know which part needs to remove based on 2 years. This amount put based on new business startup. business is Event Management in florida. i feel few things will not come in as its new business just started .......
FUN & JOY INC
FUN & JOY INC
Income Statement For the Year Ended [December 31, 2016] 2016 2015 Revenue: Service revenue 255500 225700 Grant 178850 157990 Fund raising 89425 78995 Total Revenue 523775 462685 Expenses: Advertising 2555 2257 Amortization 2500 2500 Bad Debts 5110 4514 Bank Charges 7857 6940 Charitable Contributions 3500 2800 Commissions 38325 33855 Contract Labor 63875 56425 Credit Card Fees 5110 4514 Delivery Expenses 3194 2821 Depreciation 15000 16500 Dues and Subscriptions 256 226 Insurance 1500 1500 Interest 3000 3000 Maintenance 750 675 Miscellaneous 125 135 Office Expenses 1022 903 Operating Supplies 12775 11285 Payroll Taxes 32 28 Permits and Licenses 1200 1200 Postage 307 271 Professional Fees 550 500 Property Taxes 112 112 Rent 6000 4800 Repairs 225 195 Telephone 175 165 Travel 335 285 Utilities 305 295 Vehicle Expenses 265 225 Wages 63875 56425 Total Expenses 239833 215351 Earning Before Income Tax 283942 247334 Tax Expenses 99380 86567 Net Income 184562 160767Explanation / Answer
First you need to check whether the business holds some patents or not. As amortization is not usually applied unless a business holds some intangible asssetThen second thing you need to check is whether the permits and license fees is one time payment or it is a yearly payment for a long period. After checking these 2 , just check the total of expenses it is 239835. Everything else is fine you have prepared the income statement correclty
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