Question

Suppose you are doing an internship at a local tax office. Your manager, asks you to prepare a simple income statement using the following list of accounts to test your basic knowledge of financial reporting.

Accounts	Cash/Million Dollars/
Depreciation	25
General Management Expenses	22

Answer 1

Answer to prepare the income statement as below

Company Name
Income Statement
for the period________________
	Particulars	Cash/Million dollor
A	Revenue	-
B	Cost of Revenue	-
C	Gross Profit	-
D	Operating Expenses
	Selling, general and administrative	22.00
	Provision for bad debts	-
	Depreciation and Amortization	25.00
	Impairement	-
	Total Operating Expenses	47.00
E	Operating (Loss) income	(47.00)
F	Other income (Expenses)
	Interest Income	-
	Interest Expenses	-
	foreign exhchange losses /gain net	-
	Total other expenses	-
G	Loss before provision for income tax	(47.00)
H	Provision for Taxes	-
I	Net Loss	(47.00)