Sales revenue is 75,000, gross profit is 30,000, and net income is 10,800. What is the cost of goods and operating expenses?
The income statement for a firm shows the revenue earned and expenses incurred during a given financial year. It may be prepared by using a single-step method or a multi-step method. The multi-step method shows various tiers of earnings such as gross profit, operating profit, and net income.
Answer and Explanation: 1
The calculated values for the cost of goods sold and operating expenses are $45,000 and $19,200 repsectively.
The cost of goods sold is given by:
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fromChapter 2 / Lesson 2
Learn about what goes on an income statement and its format, including how to prepare, what is shown, and examples. Discover the importance of income statements.