Net Income: Revenue– ExpensesNet Sales: Gross Sales – Sales Returns and Allowances Total Inventory: Beginning Inventory Purchases Cost of Goods Sold: Total Inventory – Ending Inventory Gross Profit/

Financial Reporting

Complete the provide Excel Income Statement by entering the supplied values for March and April. Once you have completed the entries on the Income Statement, use the totals to answer the following questions. When you upload your assignment, be sure to include this Word document and the completed Excel Income Statement

1. What two types of financial information are shown on a Balance Sheet?

1. What is the difference between the Balance Sheet and Income Statement?

1. Using the Income Statement provided, input the following numbers for March 2018

   • Gross Sales $210,000

   • Sales Returns $100

   • Beginning Inventory $7,500

   • Inventory Purchases $3,000

   • Ending Inventory $8,000

   • Wages $15,000

   • Travel $2,000

   • Depreciation $1,500

   • Insurance $1,500

   • Office Supplies $800

   • Rent $3,000

   • Telephone $300

1. What is the Net Sales Amount for March?

1. What is the Cost of Goods Sold Amount for March?

1. Total Expenses for March?

1. Net Operating Income for March?

1. Using the Income Statement provided, input the following values for April 2018

• • Gross Sales $200,000

  • Sales Returns $0

  • Beginning Inventory $8,000

  • Inventory Purchases $1,500

  • Ending Inventory $5,500

  • Wages $16,000

  • Licenses & Fees - $3,500

  • Depreciation $1,500

  • Insurance $1,500

  • Office Supplies $450

  • Rent $3,000

  • Telephone $275

1. What is the Net Sales Amount for April?

1. What is the Cost of Goods Sold Amount for April?

1. Total Expenses for April?

1. Net Operating Income for April?

______________________________________________________________________

Net Income: Revenue– Expenses

Net Sales: Gross Sales – Sales Returns and Allowances

Total Inventory: Beginning Inventory + Purchases

Cost of Goods Sold: Total Inventory – Ending Inventory 

Gross Profit/Net Operating Income: (Net Sales – Cost of Goods Sold) - Total Expenses

Assets: Liabilities + Equity