In: Accounting
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.
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 |