Casey Hill is the sole shareholder of Hill Enterprises Ltd., a small retail shop selling locally made arts and crafts. The shop has been in operation for several years and has a calendar fiscal year. Casey provides you with the Income Statement for the corporation for December 31, 2020 (Click on the icon to view the income statement.) (Click on the icon to view the notes to the income statement.) Calculate the net business income for Hill Enterprises Ltd. for the year 2020. Calculate the net business income for Hill Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is S Hill Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 630.000 Cast of sales ca 46.000 252.000 Opening inventory Purchases 298.000 Closing inventory 66.000 Total Cost of Goods Sold 398.000 Gross profit Expenses B1800 Accounting and legal expenses (Note 2) Advertising and promotion expenses (Note 3) Depreciation expense (Note 4) Automobile expenses Bad debts expense (Note 5) Insurance expense (Note 6) 4,600 25,200 7.000 4.200 7.200 Interest expense 18.200 Orice expenses (Note 1) 10.000 134000 Rent expense Wages and benefits expenses Note 8) 106.000 220.200 Total expenses S 177 800 Net income 2. 3. Hill Enterprises Ltd. is a small business corporation operated by the sole shareholder, Casey Hill. Accounting and legal includes legal fees related to Casey's dispute in regards to a personal car accident in the amount of $1,940. Advertising and promotion includes 'Meals and Entertainment costs in the amount of $4,290. Information for Capital Cost Allowance (CCA) purposesthe Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,100 Class 10 (Automotive Equipment): $24,000. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable at December 31 of the current year. This is a procedure that the proprietorship follows every year. Insurance includes life insurance premiums for Casey Hill in the amount of $2,200. This life insurance policy is required as collateral for the business bank loan. Office expenses include the $5,800 purchase of laptop computers on January 15, 2020. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,860. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. 5. 6. 7. Casey Hill is the sole shareholder of Hill Enterprises Ltd., a small retail shop selling locally made arts and crafts. The shop has been in operation for several years and has a calendar fiscal year. Casey provides you with the Income Statement for the corporation for December 31, 2020 (Click on the icon to view the income statement.) (Click on the icon to view the notes to the income statement.) Calculate the net business income for Hill Enterprises Ltd. for the year 2020. Calculate the net business income for Hill Enterprises Ltd. for 2020. (Round to the nearest dollar.) The net income for 2020 is S Hill Enterprises Ltd. Income Statement For the year ended December 31, 2020 Income Sales 630.000 Cast of sales ca 46.000 252.000 Opening inventory Purchases 298.000 Closing inventory 66.000 Total Cost of Goods Sold 398.000 Gross profit Expenses B1800 Accounting and legal expenses (Note 2) Advertising and promotion expenses (Note 3) Depreciation expense (Note 4) Automobile expenses Bad debts expense (Note 5) Insurance expense (Note 6) 4,600 25,200 7.000 4.200 7.200 Interest expense 18.200 Orice expenses (Note 1) 10.000 134000 Rent expense Wages and benefits expenses Note 8) 106.000 220.200 Total expenses S 177 800 Net income 2. 3. Hill Enterprises Ltd. is a small business corporation operated by the sole shareholder, Casey Hill. Accounting and legal includes legal fees related to Casey's dispute in regards to a personal car accident in the amount of $1,940. Advertising and promotion includes 'Meals and Entertainment costs in the amount of $4,290. Information for Capital Cost Allowance (CCA) purposesthe Undepreciated Capital Cost (UCC) at December 31 of the prior year was as follows: Class 8 (Office & General Equipment): $45,100 Class 10 (Automotive Equipment): $24,000. The company has set up an allowance for doubtful accounts based on a review of the Accounts Receivable at December 31 of the current year. This is a procedure that the proprietorship follows every year. Insurance includes life insurance premiums for Casey Hill in the amount of $2,200. This life insurance policy is required as collateral for the business bank loan. Office expenses include the $5,800 purchase of laptop computers on January 15, 2020. Wages and benefits includes the club dues/membership fees paid to the Royal Oak Club in the amount of $5,860. The club dues are paid for the five managers who take clients to the Royal Oak Club on a regular basis for business purposes. 5. 6. 7