The Income Statement 

	Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings.	Mark
Part 1	CQU Oil Limited is a an oil wholesale company that had:   ·         sales last year of $2.5 million; ·         cost of goods sold of $700,000; ·         paid interest of $200,000; ·         cash operating expenses of $150,000; ·         Depreciation expense amounting to $150,000 ·         a tax liability equal to 30% of the firm’s taxable income. a.    Construct an Income Statement with the above data. b.    Determine CQU Oil’s taxable income and tax payable for the year. c.    Determine the total amount of: i.      fully franked dividends ii.     imputation credits that the company is able to declare from its past year’s results. d.    Analyse the data and outcome. What information can we derive from CQU Oil’s Income Statement?

Answer rating: 100% (QA)

a Income Statement CQU Oil Limited For the Year Ended 31 December 20X9 000 Sales 2500 Cost of Goods Sold 700 Gross Profit 1800 Interest Expense 200 Op... View the full answer