Problem 1: Income statement
Given the following information, prepare an income statement for the Dental Drilling Company.
Selling and administrative expense $ 72,000
Depreciation expense 71,000
Sales 536,000
Interest expense 45,000
Cost of goods sold 179,000
Taxes 53,000
Problem 2
Given the following information, prepare an income statement for Jonas Brothers Cough Drops.
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Selling and administrative expense
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$
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326,000
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Depreciation expense
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196,000
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Sales
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1,600,000
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Interest expense
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124,000
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Cost of goods sold
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551,000
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Taxes
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167,000
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Problem 3
Depreciation and earnings
Stein Books, Inc., sold 2,300 finance textbooks for $200 each to High Tuition University in 2010. These books cost $170 to produce. Stein Books spent $12,300 (selling expense) to convince the university to buy its books.
Depreciation expense for the year was $15,500. In addition, Stein Books borrowed $102,000 on January 1, 2010, on which the company paid 17 percent interest. Both the interest and principal of the loan were paid on December 31, 2010. The publishing firm's tax rate is 30 percent.
Prepare an income statement for Stein Books.