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The trial balance of LMN Corporation shows the following account balances: Sales $500,000, Cost of goods sold $250,000, Selling expenses $50,000, Administrative expenses $30,000, and
The trial balance of LMN Corporation shows the following account balances: Sales $500,000, Cost of goods sold $250,000, Selling expenses $50,000, Administrative expenses $30,000, and Income tax expense $40,000. Prepare an income statement for the company, highlighting each expense category and the resulting net income. Discuss the importance of accurate income statements in assessing a company's financial health.
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