P&L (Income Statement) Items

Salaries $90, 000

Gross Profit (calculate this)

Insurance $1,500

Gross Sales $720,000

Sales Returns, Allowances and discounts $20,000

Depreciation $1,500

Income Tax Expense $19,000

Net Sales (calculate this)

Cost of Goods Sold $410,000

Total Operating Expenses (calculate this)

Advertising $18,000

Rent $28,000

Net Income before Taxes (calculate this)

Supplies $2,000

Net Income after Taxes (calculate this)

Light, heat and power $12,000

Misc. Expenses $2,000

BALANCE SHEET

Long Term Liabilities $325,000

Accounts Receivable $200,000

Cash $15,000

Inventory $335, 000

Current Liabilities (calculate this)

Fixed Assets $206,000

Total Current Assets (calculate this)

Intangible Assets $20,000

Accounts Payable $238,000

Owners Equity $213,000

Total Assets (calculate this)

Total Liabilities (calculate this)

There are some missing that need to be calculated.

Construct a P&L (Income Statement) and a Balance Sheet using the items listed below. Use all of them. The statements need to be arranged using the standard formatting you have studied. Use the $ values and calculate the items where it asks you to do so.

Is the company profitable.Does the Balance Sheet reflect a company that is sound financially.