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• Evaluate the financial health of and risks to a company based on the analysis of its financial statements.

 

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Net sales Cost of goods sold Income Statement For the Year Ended December 31, 2025 Gross profit on sales Selling expenses Salaries and wages expense (sales) Advertising expense Total selling expenses Administrative expenses Salaries and wages expense (general) Depreciation expense-equipment Property tax expense Rent expense Bad debt expense Telephone and Internet expense Insurance expense Total administrative expenses Total selling and administrative expenses Income from operations Other revenues and gains Interest revenue Other expenses and losses Interest expense Income before income taxes Income tax Net income $20,000 10,200 19,000 6,700 5,300 4,300 1,000 600 360 $30,200 37,260 $400,000 316,000 84,000 67,460 16,540 800 17,340 1,700 15,640 3,440 $ 12,200 Net sales Cost of goods sold Income Statement For the Year Ended December 31, 2025 Gross profit on sales Selling expenses Salaries and wages expense (sales) Advertising expense Total selling expenses Administrative expenses Salaries and wages expense (general) Depreciation expense-equipment Property tax expense Rent expense Bad debt expense Telephone and Internet expense Insurance expense Total administrative expenses Total selling and administrative expenses Income from operations Other revenues and gains Interest revenue Other expenses and losses Interest expense Income before income taxes Income tax Net income $20,000 10,200 19,000 6,700 5,300 4,300 1,000 600 360 $30,200 37,260 $400,000 316,000 84,000 67,460 16,540 800 17,340 1,700 15,640 3,440 $ 12,200