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.

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Definitions:

Pelagic

Referring to oceanic water not close to the bottom or shore, encompassing the entire water column used particularly in context to the life and ecosystems found within this vast, open ocean area.

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or the entire Earth, crucial for maintaining ecological balance.

Trawl Fishing

A method of fishing that involves dragging a large net through the water, either at midwater or along the sea bottom.

Ocean Floor Ecosystems

Diverse habitats found on the ocean floor, ranging from deep sea vents to coral reefs, supporting a wide variety of life forms.