Prepare an income statement and a common size income statement from the following information. sales $525,000.00 cost of goods sold $200,000.00 general and administrative expenses $62,000.00 depreciation $8,000.00 interest expense $12,000.00income taxes $97,200.00

Net Income for the year is $145,800 (28% as percentage of Sales)

Explanation:

                                                                     Income              Common Size  

                                                                   Statement        Income Statement

Sales Revenue                                       $525,000            100%

Less: Cost of Goods Sold                       $(200,000)            38%

Gross Profit                                                $325,000              62%

Less expenses:  

General & Administrative Expenses         $(62,000)            12%

Depreciation                                                 $(8,000)                     2%

Earnings before Interest & Taxes (EBIT)     $255,000              49%  

Less: Interest Expense                                  $(12,000)              2%  

Earnings before Tax (EBT)                           $243,000              46%  

Less: Income Tax Expense                          $(97,200)            19%    

Net Income                                                   $145,800             28%

Common Size income statement is the one where each line item of the company's income statement is expressed as percentage of Sales Revenue.

Please note that:

e would be the answer

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.