The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017....
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The financial records of Leon Paul Inc. were destroyed by fireat the end of 2017. Fortunately the controller had kept certainstatistical data related to the income statement as presentedbelow. 1. The beginning merchandise inventory was $184,000 anddecreased 20% during the current year. 2. Sales discounts amount to$34,000. 3. 20,000 shares of common stock were outstanding for theentire year. 4. Interest expense was $40,000. 5. The income taxrate is 30%. 6. Cost of goods sold amounts to $1,000,000. 7.Administrative expenses are 20% of cost of goods sold but only 8%of gross sales. 8. Four-fifths of the operating expenses relate tosales activities. Operating expenses consist of selling andadministrative expenses. Instructions From the foregoinginformation, prepare an income statement for the year 2017 insingle step form.
The financial records of Leon Paul Inc. were destroyed by fireat the end of 2017. Fortunately the controller had kept certainstatistical data related to the income statement as presentedbelow. 1. The beginning merchandise inventory was $184,000 anddecreased 20% during the current year. 2. Sales discounts amount to$34,000. 3. 20,000 shares of common stock were outstanding for theentire year. 4. Interest expense was $40,000. 5. The income taxrate is 30%. 6. Cost of goods sold amounts to $1,000,000. 7.Administrative expenses are 20% of cost of goods sold but only 8%of gross sales. 8. Four-fifths of the operating expenses relate tosales activities. Operating expenses consist of selling andadministrative expenses. Instructions From the foregoinginformation, prepare an income statement for the year 2017 insingle step form.
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