Question
Financial statement data for Delicious Dishes, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the
Financial statement data for Delicious Dishes, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2020 and use your constructed statement to answer the following 4 questions.
Advertising 16,400 Beginning of year inventory 127,800 Depreciation 5,200 End of year inventory 124,600 General and administrative expenses 21,900 Gross sales 842,500 Interest expense 21,700 Lease payments 12,000 Management salaries 106,400 Purchases 524,700 Research and development 12,600 Returns and allowances 3,600 Taxes 35,900
1. What was gross profit from income statement for the year ending December 31, 2020?
2. What was operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending December 31, 2020?
3. What was profit before taxes (i.e., EBT) from Delicious Dishes income statement for the year ending December 31, 2020?
4. What was net income from Delicious Dishes income statement for the year ending December 31, 2020?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started