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The following balances are taken from the books of Lens Landscaping for the year ending 31 December 20XX: Debit Credit Sales 80,000 Cost of goods
The following balances are taken from the books of Lens Landscaping for the year ending 31 December 20XX:
| Debit | Credit |
Sales |
| 80,000 |
Cost of goods sold | 28,500 |
|
Salaries | 34,600 |
|
Water and electricity | 1,900 |
|
Insurance | 2,800 |
|
Cash | 23,500 |
|
Rent | 30,000 |
|
Shareholders capital |
| 52,000 |
The following additional information is available:
- Interest is charged at 10% on the principle amount. Note that the company has no debt obligations.
- The company tax rate is 30%.
Prepare an income statement for the year ending 31 December 2016, using the following template:
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Gross profit |
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Operating expenses |
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Non-operating incomes and expenses |
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Profit before tax |
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