RODNEY BUCKMIRE-mod2-slp - Cost of goods sold $220,000.00...

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RODNEY BUCKMIRE ACC201-MOD2-SLP  ORIGINAL INCOME STATEMENT  NYBROSTRAND COMPANY  31 December 2011 Revenues: Accounts Payable $67,000.00 Common Stock $10,000.00 Long-term debt $145,000.00 Paid-in Capital $90,000.00 Revenues $456,000.00 Retained Earning ? Total revenues $768,000.00 Expenses: Accounts Rec $24,500.00 Cash $16,700.00 Depreciation expenses $24,350.00 Cost of goods sold $254,000.00 Equipment (net of  depreciation) $425,000.00 Insurance $1,400.00 Inventory $25,000.00 Marketing $4,500.00 Property Taxes $8,900.00 Rent $18,000.00 Salaries $67,500.00 Utilities $6,700.00 Net income $108, 550.00 CORRECTED INCOME STATEMENT ON NEXT PAGE
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CORRECTED INCOME STATEMENT  NYBROSTRAND COMPANY  31 December 2011 Revenues: Accounts Payable $67,000.00 Common Stock $10,000.00 Long-term debt $145,000.00 Paid-in Capital $90,000.00 Revenues $456,000.00 Retained Earning ? Total revenues $768,000.00 Expenses: Accounts Rec $24,500.00 Cash $16,700.00 Depreciation expenses $24,350.00
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Unformatted text preview: Cost of goods sold $220,000.00 Equipment (net of depreciation) $425,000.00 Insurance $1,400.00 Inventory $25,000.00 Marketing $4,500.00 Property Taxes $8,900.00 Rent $18,000.00 Salaries $67,500.00 Utilities $6,700.00 Net income $74, 550.00 The $34,000 that is taken from the cost of goods sold gives the company an income loss. It is important for the companies to keep a good record of their profits and losses. It can affect how the company is rated on their financial status. Also, it shows how well they are doing to see if they are able to keep their company afloat. As of this income statement, the company doesn’t look like they are profiting enough to be able to cover their expenses. I know $34,000 doesn’t seem like a lot in the business world, but when it comes to having debt to income ratio that it high, it affects the companies actual income....
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