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Use this information to prepare a financial statement for company ABC Co for the 12 months ended 31st December 2019
Distribution expenses $ 8,000
Salaries and wages related to selling product $ 16,000
Advertisements and promotions for Product $ 5,000
Salaries and wages for administrative staff $ 7,500
Office supplies expenses $ 1500
administrative utility expenses $ 3000
Depreciation on office equipment $ 750
Interest expense $ 1500
Cost of direct material purchase for product Alpha $ 165,000
Cost of stock at the beginning of the period Alpha $ 15,000
Cost of stock at the end of the period Alpha $ 20,000
Revenue from sale of Product Alpha $ 312,500
Based on the above information prepare a basic financial statement and identify the following.
i. Gross Profit (3)
ii. Total operating expenses (Show separately your selling distribution expenses and administrative expenses) (3)
iii. Operating income (3)
iv. Net income (Assume your business is taxed at 4%) (3)
v. Correct Income statement with clear separation of items (4)
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