KARLA COMPANY

Income Statement
For the Year Ended December 31, 2020

Functional Method

Net sales (1) ₱7,700,000

Cost of goods sold (2) (5,000,000)
Gross income ₱2,700,000
Other income (3) 400,000
Total income ₱3,100,000
Expenses:
Selling expenses (4) ₱950,000
Administrative
expenses (5) 800,000
Other expenses (6) 100,000 ₱1,850,000
Income before tax ₱1,250,000
Income tax (250,000)
Net income ₱1,000,000