This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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....
View Full Document