Question
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015. Cash $185,000 Salaries and wages expense (sales) $284,000 Inventory (beginning) 535,000 Salaries
Presented below are selected ledger accounts of Woods Corporation at December 31, 2015.
Cash | $185,000 |
| Salaries and wages expense (sales) | $284,000 |
Inventory (beginning) | 535,000 |
| Salaries and wages expense (office) | 346,000 |
Sales revenue | 4,175,000 |
| Purchase returns | 15,000 |
Unearned sales revenue | 117,000 |
| Sales returns and allowance | 79,000 |
Purchases | 2,786,000 |
| Freight-in | 72,000 |
Sales discounts | 34,000 |
| Accounts receivable | 142,500 |
Purchase discounts | 27,000 |
| Sales commissions | 83,000 |
Selling expenses | 69,000 |
| Telephone and Internet expense (sales) | 17,000 |
Accounting and legal services | 33,000 |
| Utilities expense (office) | 32,000 |
Insurance expense (office) | 24,000 |
| Miscellaneous office expenses | 8,000 |
Advertising expense | 54,000 |
| Rent revenue | 240,000 |
Delivery expense | 93,000 |
| Loss on sale of division | 60,000 |
Depreciation expense (office equipment) | 48,000 |
| Interest expense | 176,000 |
Depreciation expense (sales equipment) | 36,000 |
| Share capitalordinary ($10 par) | 900,000 |
Woods's effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $686,000.
Requirement:
Prepare a 2015 income statement for Woods Corporation
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