Income (Revenue) Statements
Question 1
Calculate COGS from the following:
Kick Shoes commenced their trading period with $2 000 worth of stock. They purchased stock worth $40 000
during this time. At the close of the trading period a stocktake was conducted and found that there was $10
000 worth of stock.
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Question 2
Use the following information for the Nice Ice Cream Company to complete the following tasks below:
Sales = $100 000
Closing stock = $5 000
Opening stock = $20 000
Total Expenses = $35 000
Purchases = $20 000
a. Calculate the cost of goods sold (show all working):
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b. Calculate gross profit (show all working):
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c. Calculate net profit (show all working):
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Question 3
Construct an income statement for Hanson Pty Ltd for the period ending 30 April 2020.
Opening stock = $50 000
Sales = $200 000
Rent = $20 000
Advertising = $25 000
Insurance = $8 000
Wages = $30 000
Bad debts = $2 000
Closing stock = $10 000
Purchases = $60 000
Cartage outwards = $10 000
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