Sophisticated - SOPHISTICATED PETITES INCOME STATEMENTS(year end December 31 ~ Sales Cost Of Goods Sold Beginning Inventory Purchases Freight

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INCOME STATEMENTS (year end December 31) 1988 1989 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~ ~~~~ Sales 600,110 1,300,518 Cost Of Goods Sold Beginning Inventory 120,022 Purchases 479,130 965,840 Freight 958 1,959 --------- ---------- 480,088 1,087,821 Ending Inventory 120,022 268,494 --------- ---------- Cost of Goods 360,066 819,327 --------- ---------- GROSS PROFIT 240,044 481,191 Expenses: Advertising 10,000 15,000 45,000 77,513 Bad Debts 600 1,301 8,101 22,563 Depreciation 6,155 11,054 Loss Due to Theft 6,001 13,005 Owner's Salary 31,250 Promotion 18,003 39,016 Rent 72,050 141,038 Wages and Benefits 39,543 90,034 --------- ---------- TOTAL EXPENSES 205,456 441,773 Extraordinary Loss 20,450 --------- ---------- INCOME BEFORE TAXES 34,588 18,968 Taxes 8,647 4,742 ========= ========== NET INCOME 25,941 14,226 ========= ========== Note: re Bank Charges and Interest, includes. .. $600 bank charge + 2.5% discount on credit card sales + interest on old term loan + interest on new term loan ignores interest on overdraft (if any) BALANCE SHEETS (as at December 31) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1988
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This note was uploaded on 05/09/2011 for the course BUSI 408 taught by Professor Zeighamkhokher during the Spring '11 term at University of North Carolina School of the Arts.

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Sophisticated - SOPHISTICATED PETITES INCOME STATEMENTS(year end December 31 ~ Sales Cost Of Goods Sold Beginning Inventory Purchases Freight

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