Kc Hershey Lor BSA32KB1

KARLA COMPANY
Income Statement
Year Ended December 31, 2017

Note
Net sales (1) 7700000
Other income (2) 400000
Total Income 8100000
Expenses:
Increase in Inventory (3) (500000)
Net Purchases (4) 5050000
Freight out 175000
Salesmen's Commision 650000
Depreciation (5) 425000
Officer's Salaries 500000
Other expenses (6) 100000
Representation expenses 785000 7185000
Net loss 915000

NOTE 1- NET SALES

Sales 7850000
Sales Returns and Allowances (140000)
Sales Discount (10000)
Net sales 7700000

NOTE 2- OTHER INCOME

Rental income 250000

Divident Revenue 150000
Total Other income 400000

NOTE 3- Increase in Inventory

Mechandise Inventory, Dec 31 1500000

Mechandise Inventory, Jan 1 (100000)
Total Other income 1400000

NOTE 4- Increase in Inventory

Purchases 5250000
Freight in 50000
Purchase returns and allowances (150000)
Purchase discount (100000)
 Net Purchases 5050000

NOTE 5- Depreciation

Depreciation - store equipment 125000

Depreciation - office equipment 300000
Total 425000

NOTE 6- Other expense

Loss on sale of equipment 50000

Loss on sale of investment 50000
Total 100000
 MASAY COMPANY
Statement of Cost of Goods Manufactured
Year Ended December 31, 2017

Raw materials, Jan 1 200000

Purchases 3000000 Net sales
Raw materials available for use 3200000 Cost of goods sold
Less: Raw materials, Dec 31 (280000) Gross income
Raw materials used 2920000 Other income
Direct labor 950000 Total income
Factory Overhead: Expense
Indirect labor 250000
Superintendence 210000
Light, heat and power 320000
Rent-factory bldg. 120000 Income before tax
Repair and maintenance - machinery 50000 Income expense (3
Depreciation - machinery 60000 Income after tax (l
Factory supplies used 110000 1120000
Total manufacturing cost 4990000
Goods in process, Jan 1 240000
Total cost of goods put to process 5230000
Goods in process, Dec 31 170000
Cost of goods manufactured 5060000
 COST OF GOODS SOLD METHOD
MASAY COMPANY
Income Statement
Year Ended December 31, 2017

Note
Net sales (1) 7,450,000
Cost of goods sold (2) 5,120,000
Gross income 2,330,000
Other income 210,000
Total income (3) 2,540,000
Expense
Distribution cost 830,000
Administrative expenses 590,000
Earthquake loss 300,000 1,720,000
Income before tax 820,000
Income expense (30% x 7500000) 2,250,000
Income after tax (loss) (1,430,000)

NOTE 1- NET SALES

Sales 7500000
Sales Returns and Allowances (50000)
Net sales 7450000

NOTE 2- COGS

Finished goods - Jan 1 360000

COGM 5060000
Goods Available for sale 5420000
Finished goods - Dec 31 300000
COGS 5120000

NOTE 3- OHER INCOME

Gain on sale of equipment 100000
Gains from expropriation 100000
Interest Income 10000
Total Other income 210000

NOTE 4- DISTRIBUTION COSTS

Sales salaries 400000

 Advertising 160000
Depreciation - store equipment 70000
Delivery expense 200000
Net Purchases 830000

NOTE 5- Depreciation

Depreciation - store equipment 125000

Depreciation - office equipment 300000
Total 425000
 NATURE OF EXPENSE METHOD
MASAY COMPANY
Income Statement
Year Ended December 31, 2017

Note
Net sales (1) 7450000
Other income (2) 210000
Total Income 7660000

Expenses
Decrease in inventory (3) 130000
Raw materials (4) 2920000
Direct labor 950000
Factory Overhead (5) 1120000
Salaries (6) 550000
Advertising 160000
Depreciation (7) 110000
Delivery expenses 200000
Accounting and legal fees 150000
Earthquake loss 300000
Office expenses 250000 6840000
Income before tax 820000
Income tax expense 2250000
loss after tax 1430000

NOTE 1- NET SALES

Sales 7500000
Sales Returns and Allowances (50000)
Net sales 7450000

NOTE 2- OHER INCOME

Gain on sale of equipment 100000
Gains from expropriation 100000
Interest Income 10000
Total Other income 210000

NOTE 3- Decrease in FGI and GIPI

Beg End Decrease

 FGI 360000 300000 60000
GIPI 240000 170000 70000
Total 130000

NOTE 4- RAW MATERIALS USED

Raw materials, Beg 200000

Purchases 3000000
Raw materials available for use 3200000
Raw materials, End 280000
Raw materials used 2920000

NOTE 5- FACTORY OVERHEAD

Indirect labor 250000

Superintendence 210000
Light, heat and power 320000
Rent-factory bldg. 120000
Repair and maintenance - machinery 50000
Depreciation - machinery 60000
Factory supplies used 110000
Total FO 1120000

NOTE 6- SALARIES

Sales salaries 400000

Office salaries 150000
Total 550000

NOTE 7- Depreciation

Depreciation - store equipment 70000

Depreciation - office equipment 40000
Total 110000