a. Prepare an income statement for the year 20X

Key Facts:

Sales

Cost of goods sold

Amortization expense

Note payable interest

Bond payable interest

Selling and administrative expense

Tax rate

Cash dividend paid

Change in cash balance

Change in prepaid expense balance

Increase in accounts receivable

Increase in inventory

Increase in accounts payable

Cost of additional machine

Increase in notes payable

Decrease in bonds payable

$220,000

60% of sales

10% of plant and equipment (net)

10%

8%

$22,000

18%

$12.800

10%

10%

535.350

$6,000

$10.000

Gardner Corporation

Income Statement

for the year ended December 31, 20XY

Sales

Cost of goods sold

Gross profit

Selling and administrative expense

Amortization expense

Operating profit (EBIT)

Interest expense on bonds

Interest expense on notes

$220.000

FORMULA

FORMULA

22,000

FORMULA

FORMULA

FORMULA

2,000

#VALUE!

Use the templates below to meet the requirement a. Prepare an income statement for the year 20X