Income Statement Accounts for the Year Ending 2017 Account Balance Cost of goods sold $1,415,000 Interest...

Income Statement Accounts for the Year Ending 2017

Account Balance

Cost of goods sold $1,415,000

Interest expense $293,000

Taxes $227,600

Revenue $2,985,000

Selling, general, and administrative expenses $453,000

Depreciation $255,000

Income statement. From the following income statement accounts in the popup window, (popup window info above)

a. produce the income statement for the year.

b. produce the operating cash flow for the year.

a. produce the income statement for the year.

Complete the income statement below. (Round to the nearest dollar.)

Income Statement
Year Ending December 31, 2017
	$
	$
	$
	$
EBIT	$
	$
Taxable income	$
	$
Net income	$

b. produce the operating cash flow for the year.

The operating cash flow for the year is

$______. (Round to the nearest dollar.)

Solutions

Expert Solution

Question a:
Income Statement for year ending December 31,2017
Particulars	Formula	Amount
Revenues	A	$ 2,985,000
Cost of Goods sold	B	$ 1,415,000
Selling and administrative expenses	C	$ 453,000
Depreciation	D	$ 255,000
EBIT	E = A-B-C-D	$ 862,000
Interest Expense	F	$ 293,000
Earnings Before Tax	G = E-F	$ 569,000
Taxes	H	$ 227,600
Net Income	I = G-H)	$ 341,400

Question b:
Operating Cash Flow = Net Income + Depreciation + Interest Expense
= $341,400 + $255,000 + $293,000
= $889,400
Therefore, Operating Cash flow is $889,400

jeff jeffy answered 1 year ago

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