Use the following information to prepare Company’s Income Statement:

5% of sales returned

Gross sales = 100,000 + Retail sales from FIFO=25,000

Cost of Goods Sold = 110,000 = from FIFO

Depreciation = 29,675

Sales expenses = 10% of Net Sales

Administrative Expenses = 42,730

Income from other sources = 197,347

Interest = 7.75% of Gross Income

Taxes = 19% of Gross Income

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Answer rating: 100% (QA)

Income Statement Sales 125000 less Sales Return1250005 6250 Net Sales 118750 Cost of ... View the full answer