Question

Given the following information, prepare in good form an income statement for the Dental Drilling Company. (Input all amounts as positive values.) Selling and administrative expense $ 112,000 Depreciation expense 73,000 Sales 489,000 Interest expense 45,000 Cost of goods sold 156,000 Taxes 47,000

Answer 1

Answer:

Dental Drilling Company's Income Statement for the year shows Net Income of $56,000.

Please note that:

• figures in bracket represent negative values
• solution in excel format is attached for your reference

Explanation:

                                            Dental Drilling Company

                                                Income Statement

Sales                                                                    $489,000  

Less: Cost of Goods Sold                                    $(156,000)

Gross Profit                                                             $333,000  

 

Less: Expenses  

Selling and Administrative Expenses                     $(112,000)

Depreciation Expenses                                             $(73,000)

 

Earnings before Interest and Tax                      $148,000  

 

Less: Interest Expense                                             $(45,000)

 

Earnings Before Tax                                              $103,000  

 

Taxes                                                                     $(47,000)

 

Net Income                                                              $56,000  

Answer 2

Based on the information given the income statement is $56,000.

Income statement:

Dental Drilling Company Income statement

Sales                                                                    $489,000  

Less: Cost of Goods Sold                                   ($156,000)

Gross Profit                                                           $333,000  

($489,000-$156,000)

Less Selling and Administrative Expenses          ($112,000)

Less Depreciation Expenses                                 ($73,000)

Earnings before Interest and Tax                          $148,000  

($333,000-$112,000-$73,000)

Less Interest Expense                                            ($45,000)

Earnings Before Tax                                               $103,000  

($148,000-$45,000)

Less Taxes                                                              ($47,000)

Net Income                                                             $56,000

($103,000-$56,000)

Inconclusion  the income statement is $56,000.

Learn more about income statement here:https://brainly.com/question/24778422