Question

Required information The following information applies to the questions displayed below.) The following information was reported in the December 31, 2017, financial statements of National Airways, Inc. (listed alphabetically, amounts in millions). $ 4,225 690 9,800 3,080 1,275 50 Accounts Payable Accounts Receivable Aircraft Fuel Expense Cash Common Stock Dividends Equipment Income Tax Expense Interest Expense Landing Fees Expense Notes Payable Repairs and Maintenance Expense Retained Earnings (as of December 31, 2017) Salaries and Wages Expense Supplies Ticket Revenues 15,690 300 240 4,200 7.005 2.300 7,690 3,445 735 22,600 1. Prepare an income statement for the year ended December 31, 2017. (Enter your answers in millions (.e., 10,000,000 should be entered as 10.).)

Answer 1

$22,600 $22,600 Solution: National Airways, INC., Income Statement For the year ended December 31, 2017 (Amounts in millions) Revenues Ticket Revenues Total Revenue Expenses Salaries and Wages Expense Aircraft Fuel Expense Repairs and Maintenance Expense Landing Fees Expense Interest Expense Income Tax Expense Total Expenses Net Income $3,445 $9,800 $2,300 $4,200 $240 $300 $20,285 $2,315