Using the Data Provided Below, Determine What Amounts Will Appear

question 1

Essay

Using the data provided below, determine what amounts will appear on the income statement that is prepared by "nature of expenses."
$$\begin{array} { | l | l | } \hline \text { Distribution expense (1) } & 23,000\\\hline \text { Cost of goods sold (2) } & 70 , 000 \\\hline\text { General and administrative expense (3) } & 25 , 000\\\hline\end{array}$$ 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.

---

Definitions:

Middle-Class

The middle-class refers to the economic group between the working class and the upper class, typically characterized by moderate income levels and stable employment.

Hidden Rules

Unspoken, informal guidelines or expectations that govern behavior within specific social groups or cultures.

Families in Poverty

Households living below the poverty threshold, affecting their ability to meet basic needs such as food, clothing, and shelter.

Conflict Resolution Skills

The abilities to effectively manage and resolve disputes or disagreements in a peaceful manner.