You’re the managerial accountant for Club Kravitz. Annual sales are $100,000 in 2019. Wages are 40%, annual salaries...

You’re the managerial accountant for Club Kravitz. Annual sales are $100,000 in 2019. Wages are 40%, annual salaries are $5000, rent is $1000 per month, CGS is $30,000 for the year, and marketing expenses are 10% of total sales. Prepare an income statement using the gross margin format for 2019.

Expert Solution

Club Kravitz
Income Statement
Sales		$ 100,000.00
Cost of Goods Sold	$ 30,000.00
Wages (40% of 100000)	$ 40,000.00	$ 70,000.00
Gross Margin		$ 30,000.00

Operating Expenses
Salaries	$ 5,000.00
Rent (1000*12)	$ 12,000.00
Marketing Expenses (10% of 100000)	$ 10,000.00
Operating Expenses		$ 27,000.00

Net Income		$ 3,000.00

ekkarill92 answered 2 years ago

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You’re the managerial accountant for Club Kravitz. Annual sales are $100,000 in 2019. Wages are 40%, annual salaries...

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