Planet Manufacturing Provided the Following Information for the Month Ended

question 152

Essay

Planet Manufacturing provided the following information for the month ended March 31:
$$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 22,000 \\\hline \text { Beginning Finished Goods Inventory } & 7,000 \\\hline \text { Ending Finished Goods Inventory } & 6,500 \\\hline \text { Cost of Goods Manufactured } & 10,600 \\\hline \text { Selling and Administrative Expenses } & 5,125 \\\hline\end{array}$$ Prepare the income statement.

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Definitions:

Maker

A person who has promised to pay a set sum to the holder of a promissory note or certificate of deposit.

Drawer

The person who writes or issues a bill of exchange, cheque, or draft, instructing a drawee to pay a specified sum to a payee.

Transfer Warranties

Legal assurances provided by a seller to a buyer regarding the condition and legal status of property or goods being sold.

Presentment Warranties

Guarantees made by the presenter of an instrument (e.g., a check) regarding their authority and the validity of the instrument in a financial transaction.