Using the Data Provided Below, Determine What Amounts Will Appear

question 14

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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