SAD COMPANY

Income Statement (Multi-Step)

For the Year Ended December 31,201A
Amount in (Php)
Sales 9,600,000
Sales Discount -80,000
Sales Returns and Allowances -90,000
Net Sales 9,430,000
Less: Cost of Goods Sold
Inventory, January 1,201A 750,000
Purchases 4,200,000
freight-in 210,000
Gross Purchase 4,410,000
Purchase Discount -120,000
Purchases Return -100,000
Net Purchases 4,190,000
Cost of Goods Available for Sale 4,940,000
Inventory, December 31, 201A -820,000
Cost of Goods Sold 4,120,000
Gross Profit 5,310,000
Less: Operating Expenses
Advertising Expense 50,000
Sales Salaries 400,000
Commision Expense 240,000
Miscellaneous Selling Expense 40,000
Rent Expense 500,000
Office Salaries 800,000
Light and Water Expense 400,000
Insurance Expense 60,000
Taxes and Licenses 180,000
Depreciation Expense 140,000
Uncollectible Account Expense 120,000
Total Operating Expenses 2,930,000
Operating Income 2,380,000
Non-Operating Items:
Less: Interest Expense 40,000
Net Income 2,340,000