Simons, Inc sells plasticware

Question

The following information summarizes Simons' operating activities for the year:

Utilities Expense $ 65,000
Rent Expense 10,000
Sales Commissions Expense 32,500
Purchases of Merchandise 260,000
Merchandise Inventory on January 1 65,000
Merchandise Inventory on December 31 97,500
Sales Revenue 650,000

Prepare an income statement for Simons, Inc, a merchandiser, for the year ended December 31 using the format below:

Sales Revenue
Cost of Goods Sold:
Beginning Inventory
Purchases
Cost of Goods Available for Sale
Ending Inventory
Cost of Goods Sold
Gross Profit
Selling Expenses:
Sales Commissions Expense
Administrative Expenses:
Rent Expense
Utilities Expense
Total Operating Expenses
Operating Income

What will be an ideal response

Answer 1

Simons, Inc.
Income Statement
Year Ended December 31, 20XX
Sales Revenue $650,000
Cost of Goods Sold:
Beginning Inventory $65,000
Purchases 260,000
Cost of Goods Available for Sale 325,000
Ending Inventory (97,500 )
Cost of Goods Sold 227,500
Gross Profit 422,500
Selling Expenses:
Sales Commissions Expense 32,500
Administrative Expenses:
Rent Expense 10,000
Utilities Expense 65,000 75,000
Total Operating Expenses 107,500
Operating Income $315,000