Solutions to IS Practice Problems

Solutions to IS Practice Problems - Solutions to Income...

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Solutions to Income Statement Practice Problems EXERCISE 4-8 (30–35 minutes) (a) BROKAW CORP. Income Statement For the Year Ended December 31, 2010 Sales Revenue Net sales . ......................................................... $1,200,000 Cost of goods sold . ........................................ Gross profit . ......................................... 780,000 420,000 Operating Expenses Selling expenses . ....................................... $65,000 Administrative expenses . .......................... 48,000 Income from operations . ...................................... 113,000 307,000 Other Revenues and Gains Dividend revenue . ...................................... 20,000 Interest revenue . ........................................ 7,000 27,000 334,000 Other Expenses and Losses Write-off of inventory due to obsolescence . ......................................... Income before income tax and extraordinary item . .................................................................... 80,000 254,000 Income tax . ................................................. Income before extraordinary item .
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This note was uploaded on 11/05/2011 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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Solutions to IS Practice Problems - Solutions to Income...

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