advanced income statement

Question 1

Revenue Section

Answer 1

who: companys name
what: i/s
when: year ended m/d/y
**
sales - $nat
less: sales returns & allow. - $that
discounts allowed - that
you add; less: sales R&A w/ discounts allowed and put the total in the same row as discounts allowed -* nat*
net sales; sales minus R&A+discount allowed- $tat

Question 2

Cost of goods sold
part 1

Answer 2

cost of good sold
m/i, a year before the end date-$nat
purchases- $that
less: purchases r&a- $this
discounts earned- this
add purchases R&A w/ discounts earned and put the total in the same row as discounts earned- that
net purchases; purchases minus R&A+discounts earned - nat

Question 3

cost of goods sold
part 2

Answer 3

-continued
freight in- nat
cost of goods available for sale; m/i, beggining inv.+net purchases+ freight in- $nat
less: m/i, ending inv. - nat
cost of goods sold; gas minus end m/i - tat
gross profit; net sales minus c.o.g.s - $tat

Question 4

operating expenses

Answer 4

listed in alphabetical order
1st expense - $nat
all expenses - nat
last expenses - nat
total operating expenses; add all expenses- tat
net income; gross profit minus total operating expenses - $tat