Name:$14-2.$ Paul Overland, owner of Eggs Etc., had a capital balance of $$23,250$ on January $1$ of the current year. On May $1$ he invested an additional

$$7,500$ in cash. The following asset and liability balances are as of December $31$ of the current year; the income and expense figures are for the

current year ended on that date.

The merchandise inventories were: January $1,$ $$26,250$; December $31,$ $$33,000.$ Withdrawals of $$13,500$ were made by Mr$.$ Overland during the

current year.

Instructions:$($Note: rely on previous chapters also.$)$

$(1)$Prepare an income statement for the current year.

$(2)$Compute the percentage of the following items to sales: $($a$)$cost of goods sold, $($b$)$gross profit on sales, $($c$)$total selling expenses, $($d$)$total general

expenses, $($e$)$total operating expenses, $($f$)$net income from operations.

Problem $14-2.$

Eggs Etc.

Income Statement for year ending December $31,19$xx

Income from Sales:

Sales

Cost of Goods Sold:

Merchandise Inventory, Jan $1,19$xx

Purchases

Freight$-$In

Delivered Cost of Purchases

Merchandise Available for Sale

Deduct Merchandise Inventory, Dec $31,19$xx

Cost of Goods Sold $.$

Gross Profit on Sales

Operating Expenses:

Selling Expenses:

Sales Commission Expense

Commissions Payable

Advertising Expense

Store Supplies Expense

Total Selling Expense

General Expenses:

Office Salaries

Office Supplies Expense

Insurance Expense $--$ General

Rent Expense

Total General Expenses

$($d$)$

Total Operating Expenses.

Net Income From Operations

$($a$)$

$($b$)$

$($c$)$

$($d$)$

$($e$)$

$($f$)$