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In addition to the balance sheet, also construct the income statement for Year 2, including showing subtotals for gross profit, operating profit, and net income,
In addition to the balance sheet, also construct the income statement for Year 2, including showing subtotals for gross profit, operating profit, and net income, Assume interest expense is $30,000 and the tax rate is 20% on pretax income (you will need to figure out how much of the $450,000 expenses noted above are operating expenses in order to arrive at the correct net income). Assume beginning inventory = ending inventory for the year and use 360 days for calculations where needed
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