Nama : Siti Rahmah Fitriani

NPM : 2020220009

a. Combined Statement Approach

Wheaterspoon Shoe
Statement of Comprehensive Income
For the year Ended December 31 2022
Net Sales £ 980,000.00
Cost of Goods Sold -£ 516,000.00
Gross Profit £ 464,000.00
Operating Expenses:
Administrative Expenses £ 181,000.00
Selling Expenses £ 140,000.00
Interest Expense £ 18,000.00 £ 339,000.00
Income from Continuing Operations Before income tax £ 125,000.00
Income Tax -£ 30,600.00
Income from Continuing Operations £ 94,400.00
Discontinuing Operations -
Net Income £ 94,400.00
Other Comprehensive Income:
Rent Revenue £ 29,000.00
Unrealized gain on non-trading equity securities, net of tax £ 31,000.00
Loss on sale of plant assets -£ 15,000.00
Other Comprehensive Income £ 45,000.00

Total Comprehensive Income for the Year £ 139,400.00

b. Two Statement Approach

Weatherspoon Shoe
Income Statement
For the Year Ended December 31, 2022
Net Sales £ 980,000.00
Cost of Goods Sold -£ 516,000.00
Gross Profit £ 464,000.00
Operating Expenses:
Administrative Expenses £ 181,000.00
Selling Expenses £ 140,000.00
Interest Expense £ 18,000.00 £ 339,000.00
Income from Continuing Operations Before income tax £ 125,000.00
Income Tax -£ 30,600.00
Income from Continuing Operations £ 94,400.00
Discontinuing Operations -
Net Income £ 94,400.00
Weatherspoon Shoe
Comprehensive Income Statement
For the Year Ended December 31, 2022
Net Income £ 94,400.00
Other Comprehensive Income:
Rent Revenue £ 29,000.00
Unrealized gain on non-trading equity securities, net of tax £ 31,000.00
Loss on sale of plant assets -£ 15,000.00
Other Comprehensive Income £ 45,000.00

Total Comprehensive Income for the Year £ 139,400.00

c. Which format do you prefer? Discuss.

I prefer to prefer to use the two statement approach format. because this format separates the income
statement from the comprehensive income statement, so in my opinion it is easier to read by readers who only
want to see net income.
 Lopez Inc.
Statement of Cash Flow
For the Year Ended December 31, 2022
Cash flow from operating activities
Net Income $ 34,000.00
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation Expense $ 6,000.00
Increase in accounts receivable $ (3,000.00)
Increase in accounts payable $ 5,000.00 $ 8,000.00
Net cash provided by operating activities $ 42,000.00
Cash flow from investing activities
Purchase of equipment $ (17,000.00)
Net cash used by investment activities $ (17,000.00)
Issuance of common stock $ 20,000.00
Payment of cash dividends $ (13,000.00)
Net cash provided by financing activities $ 7,000.00
Net increase in cash $ 32,000.00
Cash at beggining of year $ 13,000.00
Cash at end of year $ 45,000.00