Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John Anderson established JOHNManufacturing Co . , a company engaged in producing specialized machinery components, and has just completed its first full year of operations.

John Anderson established JOHNManufacturing Co., a company engaged in producing specialized machinery components, and has just completed its first full year of operations. Throughout the year, the company generated $780000 in revenue from the sale of its manufactured products. John oversees a team of 20 employees, comprising 15 production workers and 5 administrative staff. John paid annual salaries of $14,000 to each production worker and $13,500 to each administrative staff member. Cost of good sold including raw materials and factory supplies, totaled $220000 for the year.Moreover, John incurred $25000 in tax-deductible travel and entertainment expenses associated with client meetings and business development throughout the year. The lease expenses for the manufacturing facility (a tax-deductible expense) were $4,500 per month.Depreciation expenses for machinery and equipment used in production amounted to $35,000for the year. John paid $23,000 in interest during the year on a $180,000 loan utilized to launch the business. The company encountered an average tax rate of 35% during the year.using the above information, fill in the blank the write numeric value to construct the Income statement for JOHN Manufacturing Co.Operating Expenses:Sales Revenue?less: Cost of Goods Sold?Gross Profit?Operating Expenses:- production worker Salaries?Administrative staff salaries?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions