Hadley Company

Income Statement
Year ended Dec. 31,2018

Net Sales (1) 185,000

Cost of Goods Sold (2) (107,500)
Gross Income 77,500
Interest Revenue 14,000
Total Income 91,500

Expenses:
Distribution costs (3) (36,900)
 Administrative expenses(4) (15,600)
Other expenses (5) (40,000)
Net Income(Loss) (1,000)

Note 1: Net sales

Sales 205,000
Adjusment (18,000)
Sales Return (2,000)
Total 185,000
Note 2: Cost of Goods Sold
Inventory Beg. 22,000
Purchases 110,000
Purchase Discount (3,000)
Freight In 3,500
Goods available for sale 132,500
Ending inventory (25,000)
Cost of Goods Sold 107,500
Note 3: Distribution Cost
Transportation Out 1,500
Advertisinv Expense 16,000
Salesmen's salaries 17,000
Utilities Expense 2,400
Total 36,900
Note 4: Administrative Expenses
Utilities Expense 1,600
Office rent expense 6,000
Office salaries 8,000
15,600
Note 5: Other Expenses
Other expenses 15,000
Loss on Earthquake 20,000
Loss on sale of plant
and equipment 5000
40,000