Below Are the Account Balances for Eccles Corporation as of Its

question 109

Essay

Below are the account balances for Eccles Corporation as of its fiscal year ended April 30,20xx.Prepare a corporate income statement in good form,assuming 5,000 shares of common stock were outstanding during the year.
$\begin{array}{lr}\text { Administrative Expenses}&\$16,000\\\text { Cost of Goods Sold}&80,000\\\text { Discontinued Operations}\\ \text { (1) Income from the Operations of Discontinued Segment (net of taxes, \( \$ 5,000 \) )}&20,000\\\text { (2) Loss on Disposal of Segment (net of tax savings, \( \$ 6,000 \) )}&14,000\\\text { Extraordinary Loss from Fire (net of tax savings, \( \$ 4,000 \) )}&6,000\\ \text { Income Taxes Applicable to Continuing Operations } & 8,000 \\\text { Sales } & 160,000 \\\text { Selling Expenses } & 50,000\end{array}$

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Definitions:

Total Variable Costs

Costs that vary directly with the level of production, including materials and labor directly involved in a company's manufacturing process.

Drones

Unmanned aerial vehicles (UAVs) used for various purposes, including surveillance, delivery, and recreational uses.

Average Fixed Costs

Production expenses that stay the same, independent of output levels, divided by the number of units produced.

Drones

Unmanned aerial vehicles (UAVs) that are either operated by remote control or autonomously by computers.