Answer :
Statement of Income for Cullumber Grove Hardware:
CULLUMBER GROVE HARDWARE
STATEMENT OF INCOME
For the Year Ended December 31
- Sales Revenue: $598,200
- Cost of Goods Sold: $304,400
- Gross Profit: $293,800
Operating Expenses:
- Office Salaries: $65,800
- Supplies Expense: $23,300
- Insurance Expense: $7,800
- Depreciation Expense: $18,600
- Dividend Payments: -$12,100
- Sales Salaries: $100,900
- Inventory: -$17,700
- Total Operating Expenses: -$254,900
- Total Revenues: $293,800
- Operating Income: $38,900
- Net Operating Income: $38,900
- Net Income / (Loss): $38,900
The statement of income (also known as the income statement or profit and loss statement) summarizes the revenues, costs, and expenses of a company for a specific period. In this case, the statement of income for Cullumber Grove Hardware shows the financial performance for the year ended December 31.
The statement starts with the sales revenue of $598,200 and subtracts the cost of goods sold of $304,400 to calculate the gross profit of $293,800. Then, the operating expenses are listed, including office salaries, supplies expense, insurance expense, depreciation expense, dividend payments, sales salaries, and inventory adjustments.
The total operating expenses amount to -$254,900, resulting in a total revenue of $293,800. The operating income is calculated by subtracting the total operating expenses from the total revenue, which is $38,900. Finally, the net operating income is equal to the operating income, as there are no other non-operating items mentioned.
Therefore, the net income or net profit for Cullumber Grove Hardware is also $38,900, indicating the company's overall profitability for the year.
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