Using the Data Provided Below,determine What Amounts Will Appear on the Income

question 153

Essay

Using the data provided below,determine what amounts will appear on the income statement that is prepared by "nature of expenses."

Note 1 - Distribution costs include $13,000 of employee wages and $10,000 of depreciation.
Note 2 - Cost of goods sold includes $10,000 for depreciation;the remaining amount relates to the net change in inventory and purchases during the year.
Note 3 - General and administrative expenses include $20,000 of employee wages and $5,000 of depreciation.

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Definitions:

Long-Term Investments

Long-Term Investments are assets that a company intends to hold for more than one fiscal year, often including stocks, bonds, or real estate.

Property, Plant, and Equipment

Long-term assets used in the production of goods and services, such as buildings, machinery, and vehicles.

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Coming Year

The subsequent year or the next twelve months.