Question

The following information was taken from Navaria's financial records for the year ended June 30, 2020 (in thousands of dollars) Administrative expenses Cost of goods sold $9,485 79,883 Other expenses 642 Financing expenses 825 Interest revenue 632 Income tax expense 4,962 Sales revenue 120,183 Rental of Wages Equipment Advertising Depreciation Engineering activities Research and development activities $1,923 $71 $0 $524 770 36 0 128 Sales and marketing activities 3,579 5,887 27 (a) Prepare a multi-step statement of income for the year ended June 30, 2020 that reports expenses by nature (Enter amounts in thousands.) Navaria Inc. Statement of Income (in thousands of dollars)

Answer 1

Income Statement for the year ended (In Thousands) Particulars Amount Amount 1 Sales 2 Cost of goods sold 3 Gross profit 4 Operating Expenses 120183 79883 40300 Advertisement Expenses 5887 6272 wages expenses Administrative Expenses 9485 107 Rental of equipment Depreciation 679 22430 17870 Total of operating Expenses |5 Income from operations (3-4) 6 Non operating or other 632 Interest Revenue Financing expense -825 -642 Other expenses Total of non operating -835 7 Income before income taxes(5-6) 17035 8 Income tax expense 4962 9 Net Income(7-8) 12073

Working notes Particulars Engineering Activities Research and development activities sales and marketing activities Wages Rental of equipment Advertising Depreciation 71 1923 0 524 770 36 0 128 5887 3579 0 27 Total 6272 107 5887 679