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NetSolutions Income Statement (Multiple-Step) For the Year Ended December 31, 2002. Revenue from sales: Sales$720,185 Less:Sales returns and allow.$ 6,140 Sales discounts5,79011,930 Net sales$708,255 Cost of merchandise sold525,305 Gross profit$182,950. Continued. - PowerPoint PPT Presentation
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Revenue from sales:Sales $720,185Less:Sales returns and allow. $ 6,140
Sales discounts 5,790 11,930Net sales $708,255
Cost of merchandise sold 525,305
Gross profit $182,950
NetSolutionsIncome Statement (Multiple-Step)
For the Year Ended December 31, 2002
Continued
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Operating expenses:Selling expenses:
Sales salaries expense $60,030Advertising expense 10,860Depr. expense–store equip. 3,100Miscellaneous selling expense 630 Total selling expenses $ 74,620
Administrative expenses:Office salaries expense $21,020Rent expense 8,100Depr. expense–office equip. 2,490Insurance expense 1,910Office supplies expense 610Misc. admin. expenses 760 Total admin. expenses 34,890
Total operating expenses 109,510
Income from operations $ 73,440
Continued
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Other income:Interest revenue $ 3,800Rent revenue 600
Total other income $ 4,400Other expense:
Interest expense 2,440 1,960
Net income $75,400
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Revenues:Net sales $708,255Interest revenue 3,800Rent revenue 600
Total revenues $712,655Expenses:
Cost of merchandise sold $525,305Selling expenses 74,620Administrative expenses 34,890Interest expense 2,440
Total expenses 637,255
Net income $ 75,400
NetSolutionsIncome Statement (Single-Step)
For the Year Ended December 31, 2002
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NetSolutionsBalance Sheet
December 31, 2002
Continued
AssetsCurrent assets:
Cash $ 52,950Notes receivable 40,000Accounts receivable 60,880Interest receivable 200Merchandise inventory 62,150Office supplies 480Prepaid insurance 2,650
Total current assets $219,310
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NetSolutionsBalance Sheet
December 31, 2002
Property, plant, and equipment:
Land $ 10,000Store equipment $ 27,100 Less accum. depreciation 5,700 21,400
Office equipment $ 15,570 Less accum. depreciation 4,720 10,850Total property, plant, and
equipment 42,250
Total assets $261,560
Continued
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NetSolutionsBalance Sheet
December 31, 2002
LiabilitiesCurrent liabilities:
Accounts payable $ 22,420Note payable (current portion) 5,000Salaries payable 1,140Unearned rent 1,800
Total current liabilities $30,360Long-term liabilities:
Note payable (due 2004) 20,000
Total liabilities $ 50,360 Owner’s Equity
Chris Clark, capital 211,200
Total liabilities and owner’s equity $261,560
