The accountant for Dolfin Company prepared the following income statement. The auditor has asked you to use
Question:
The accountant for Dolfin Company prepared the following income statement. The auditor has asked you to use this statement to provide additional information to Dolfin Company on the Final Questions panel.
Dolfin Company |
Income Statement |
For the Year Ended December 31, 2020 |
1 | Sales |
| $316,840.00 |
2 | Expenses: |
|
|
3 | Cost of merchandise sold | $215,451.20 |
|
4 | Selling expenses | 41,189.20 |
|
5 | Administrative expenses | 34,852.40 |
|
6 | Interest expense | 275.00 |
|
7 | Total expenses |
| 291,767.80 |
8 | Net income |
| $25,072.20 |
Final Questions
The auditor has asked you to prepare additional information about Dolfin Company’s results for last year. Use the data shown on the income statement in your computations.
1. Compute the operating expenses for Dolfin Company.
2. Compute the gross profit for Dolfin Company.
3. Compute the income from operations for Dolfin Company.
Auditing and Assurance services an integrated approach
ISBN: 978-0134065823
16th edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan