Below Are the Account Balances for Eccles Corporation as of Its

question 60

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}{llr} \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}$

---

Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of changes in production level or sales volume, such as rent, salaries, or insurance.

Budgeting

The process of creating a plan to spend money, outlining an organization's financial and operational goals.

Flexible Budget

A budget that molds itself to fit changes in the volume or intensity of activity.

Other Expenses

Costs not directly related to the production or selling of goods and services, such as interest expenses and loss from foreign exchange.