An income statement for the first year of operations for Patti Company appears below:

Additional information:

a. Accounts Payable, end of year, $13,000.

b. Salaries payable, end of year, $8,450.

c. Inventories, end of year, $26,000.

d. Accounts receivable, end of year, $32,500.

e. Customers? accounts with credit balances (included in item d), end of year, $2,600.

Transcribed Image Text:

Sales Dividend revenue Interest revenue Cost of goods sold Salary expense $390,000 39,000 Net income 24,050 (208,000) (26,000) Depreciation expense (70,200) Income tax expense (109,200) $ 39,650 Sales Dividend revenue Interest revenue Cost of goods sold Salary expense $390,000 39,000 Net income 24,050 (208,000) (26,000) Depreciation expense (70,200) Income tax expense (109,200) $ 39,650

Answer rating: 100% (QA)

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