PLEASE MAKE YOUR ANSWERS CLEAR/READABLE AND CORRECT

MAKE AN INCOME STATEMENT

FORMAT FOR THE INCOME STATEMENT

ACTIVITY PERFORMANCE TASK (15 points) B. Mrs. Dela Cruz put up a mini-grocery with the following startup costs: 1. Furnitures and fixtures worth P100,000.00 with useful life of 5 years 2. Computer Equipment worth P30,000.00 with useful life of 5 years After 1 year, she was able to generate P900,000 sales revenue. Create a 5-year projected income statement given the following: She projects a 10% increase in sales every year (based on previous year's sales) She sells all items in her mini-grocery at 20% mark-up based on cost Operating expenses less depreciation for the 1st year amounted to P120,000 and she assumes a constant 10% increase in operating expenses (less depreciation) yearly Income Tax for the next 5 years is computed at 30% of Net Profit before tax. Sales Less: Cost of Sales Gross Profit Less: Operating Expenses Net income before tax Less: Income tax Net income after tax