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    6.01 Develop An Income Statement

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    Aditya Nigam
    The document provides the financial data for Ben's hardware store for the current month, including sales revenue of $75,000, cost of goods sold of $25,000, operating expenses of $10,800, taxes of $5,880, interest of $2,300, and dividends paid of $600. Based on this data, the income statement shows a gross profit of $50,000, net profit before tax and interest of $39,200, net profit after tax and interest of $31,020, and retained profit of $30,420.

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    6.01 Develop An Income Statement

    Uploaded by

    Aditya Nigam
    535 views2 pages
    The document provides the financial data for Ben's hardware store for the current month, including sales revenue of $75,000, cost of goods sold of $25,000, operating expenses of $10,800, taxes of $5,880, interest of $2,300, and dividends paid of $600. Based on this data, the income statement shows a gross profit of $50,000, net profit before tax and interest of $39,200, net profit after tax and interest of $31,020, and retained profit of $30,420.

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    The document provides the financial data for Ben's hardware store for the current month, including sales revenue of $75,000, cost of goods sold of $25,000, operating expenses of $10,800, taxes of $5,880, interest of $2,300, and dividends paid of $600. Based on this data, the income statement shows a gross profit of $50,000, net profit before tax and interest of $39,200, net profit after tax and interest of $31,020, and retained profit of $30,420.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    535 views2 pages

    6.01 Develop An Income Statement

    Uploaded by

    Aditya Nigam
    The document provides the financial data for Ben's hardware store for the current month, including sales revenue of $75,000, cost of goods sold of $25,000, operating expenses of $10,800, taxes of $5,880, interest of $2,300, and dividends paid of $600. Based on this data, the income statement shows a gross profit of $50,000, net profit before tax and interest of $39,200, net profit after tax and interest of $31,020, and retained profit of $30,420.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    6.

    01 - Develop an Income Statement

    Directions: Read the case study below and complete the income statement based on the data.

    Ben’s hardware store must complete an income statement for the current month to determine if the business is
    profitable or not. The following data has been tracked for the current month.

    Cost of Goods Sold (20,000 25,000 Operating Expenses $10,800


    units @ $1.25 ea)

    Tax @ 15% $5,880 Interest $ 2,300

    Dividends paid (1,200 $600 Sales revenue (20,000 units @ $75,000


    shares @ .50¢) $3.75)

    Create an income statement below:

    Sales revenue $75,000

    Cost of Goods Sold $25,000

    Gross Profit $50,000

    Operating Expenses $10,800

    Net Profit Before Tax and Interest $39,200

    Tax @ 15% $5,880

    Interest expense $2,300

    Net profit After Tax and Interest $31,020

    Dividends Paid $600

    Retained (Net) Profit $30,420

    See questions on next page


    What is the Gross Profit Margin?

    66.7%

    What is the Net Profit Margin?

    40.6%

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