Quick study 12-2. I prepared the income statement, but i doubt if it is formatted correctly. i often see that in income statements there are indents (exhibit 12.3, red colour) (in some statements i've seen, there are no such indents), also expences/revenues are titled (blue colour). Im also confused why (16) (green colour) is on the same line with (14) and how that number come. I thought that line represents total but why there is line under 12 (yellow)? Thank you so much!

Sorry, i meant the line over (not under) 12 (yellow)

(QS 12-2 Mogul Ltd. Income statement for Year Ended October 31, 2020 Sales #982,000 COGS (420,000 (420,000) Gross Profit $562,000 operating expenses (162, 000) Operating profit $400,000 Gain on sale 4000 Interest expense (6. 2.00) Profst before tax $397, 8000 Income tax expense (99,450) $298,350 EXHIBIT 12.3 Comparison of Income Statements ABC Corporation Income Statement For Year Ended December 31, 2020 $116 40 $76 Revenues.... Operating expenses........... Profit from operations.. Other revenues and expenses:* Gain on sale of capital assets Interest revenue... Loss on sale of capital assets... Interest expense.... Profit before tax.............. Income tax expense......... Profit. (16) $60 12 S42 QS 12-2 Corporate financial statements LO2 Mogul Ltd., a ski boot manufacturer, showed the following amounts for its year just ended October 31 20 Prepare a multi-step income statement assuming a tax rate of 25%. Cost of goods sold. Gain on sale of plant and equipment.. Interest expense..................... $420,000 4,000 6,200 Operating expenses. Sales ........... $162,000 982,000 EXHIBIT 12.3 Comparison of Income Statements ABC Corporation Income Statement For Year Ended December 31, 2020 $116 40 $76 Revenues........ Operating expenses ......... Profit from operations.. Other revenues and expenses:* Gain on sale of capital assets Interest revenue.... Loss on sale of capital assets.. Interest expense.... Profit before tax............. Income tax expense. Profit. (16) $60 12 S48