Question

1. Create an Income Statement. Tally Corp has the following information for 2014: Sales - $235,000 Cost – $141,000 Other Expenses - $7,900 Depreciation Expense - $17,300 Interest Expense - $12,900 Taxes – $19,565 Dividends - $12,300 2014 New Equity - $6,100 Net New Long-term Debt - $(4,500) Change in Fixed Assets - $25,000

Answer 1

1. Income statement of Tally Corp.

	Amount $	Amount $
Sales	$235,000
Less: cost of goods sold	-141,000
Gross margin		$94,000
Less: Operating expenses:
Depreciation expense	17,300
Other expenses	7,900	-25,200
Net operating income		$68,800
Less: Interest expense		-12,900
Income before tax		$55,900
Less: Income tax expense		-19,565
Net income		$36,335