Question
Item5 12.5points Print Item5 Item 5 12.5 points Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be
Item5
12.5points
Item5
Item 5 12.5 points
Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to shareholders. The following information for the quarter has been compiled:
Revenues | $ | 182,000 | |||
Cost of goods sold | 36,000 | ||||
Operating expenses: | |||||
Fixed | $ | 60,000 | |||
Variable | 49,000 | 109,000 | |||
Fixed operating expenses include payments of $51,000 to an advertising firm to promote Branson through various media throughout the year. The income tax rate for Bransons level of operations in the first quarter is 36%, but management estimates the effective rate for the entire year will be 40%. Required: Prepare the income statement to be included in Bransons first quarter interim report.
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