DIRECT Method
RichCorp
Income Statement
FYE
12/31/19
Revenues
445,000.00
Cost of
Goods Sold
(232,500.00)
Operating Expenses
(110,500.00)
Interest
Expense
(6,000.00)
Loss on
sale of equipment
(1,000.00)
(350,000.00)
Income
before income taxes
95,000.00
Income
tax expense
(32,500.00)
Net
Income
62,500.00
COMPARATIVE BALANCE SHEET
12/31/2019
12/31/2018
Cash
27,000
18,500.00
Accounts
Receivable
34,000
13,000.00
Inventory
27,000
-
Prepaid
Insurance
2,000
3,000.00
Land
22,500
35,000.00
Buildings
100,000
100,000.00
Equipment
96,500
34,000.00
309,000
203,500.00
Accumulated Depreciation, Buildings
10,500
5,500.00
Accumulated Depreciation, Equipment
14,000
5,000.00
Accounts...