QUESTIONS

Q1) Make an income statement from the following data or the year December 1997 of Star Co. Ltd.

Cost of goods sold $50000

Sales 112000

Sales return 12000

Expenses included selling expenses $5000, marketing expenses 2000 and general and administrative
expensive2000.

Q2) The data for Blue spring company for the year 2005 is given below. You are required to make a Cost
of goods sold statement and income statement both from t.

Opening inventory $64504

Transportation 6248

Purchases 258071

Sales 405240

Purchases return 15730

Sales return 20196

Ending inventory 62814

Operating expenses include advertising expenses $11275, Delivery expenses 14010 and utilities
expenses 8860 respectively.

Q3) Construct an income statement using the following information of ABC Nurseries for the year 2007.

Sales $320000

Selling expenses 40000

General & administrative expenses 16000

Cost of goods sold 240000

And also calculate the net profit and gross profit ratio from the above data.