Simons Company Sells Plastic Ware Prepare an Income Statement for Simons Company, a Merchandiser, for Operating

question 44

Essay

Simons Company sells plastic ware. The following information summarizes Simons' operating activities for 2015:
$\begin{array}{|l|r|}\hline\text { Utilities Expense } & \$ 65,000 \\\hline \text { Rent Expense } & 10,000 \\\hline \text { Sales Commissions Expense } & 32,500 \\\hline \text { Purchases of Merchandise } & 260,000 \\\hline \text { Inventory on January 1, 2015 } & 65,000 \\\hline \text { Inventory on December 31, 2015 } & 97,500 \\\hline \text { Sales Revenue } & 650,000\\\hline\end{array}$ Prepare an income statement for Simons Company, a merchandiser, for the year ended December 31, 2015 using the format below:
$$\begin{array} { | l | l | l | } \hline \text { Sales Revenue } & \quad\quad& \quad\quad\\\hline \text { Cost of Goods Sold } & & \\\hline \text { Beginning Inventory } & & \\\hline \text { Purchases } & & \\\hline \text { Cost of Goods Available for Sale } & & \\\hline \text { Ending Inventory } & & \\\hline \text { Cost of Goods Sold } & & \\\hline \text { Gross Profit } & & \\\hline \text { Selling Expenses } & & \\\hline \text { Sales Commissions Expense } & & \\\hline \text { Administrative Expenses } & & \\\hline \text { Rent Expense } & & \\\hline \text { Utilities Expense } & & \\\hline \text { Total Operating Expenses } & & \\\hline \text { Operating Income } & & \\\hline\end{array}$$

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Definitions:

Highly Automated

A description of processes or systems that operate with minimal human intervention, often relying on advanced technology or machinery.

Mass Production

The manufacture of a large number of uniform products with an assembly-line system.

Continuous-process Production

A manufacturing method where materials are continuously in motion, being processed, and transformed into finished goods without interruption.

Productivity Inefficiencies

Situations where resources are not utilized in the most effective way, leading to decreased output or increased costs without proportional benefits.