Answer:
HANSEN REALTY
Income Statement
For Year Ended December 31, 2023
Sales $35,000
Less: Sales returns and allowances $1,012
Less: Sales discount $1,162
Net Sales $32,826
Cost of Goods Sold:
Beginning Inventory $1,258
Purchases $11,012
Less: Purchase discounts $550
Cost of Goods Available for Sale $11,720
Less: Ending Inventory $1,610
Cost of Goods Sold $10,110
Gross Profit from Sales $32,826 - $10,110 = $22,716
Operating Expenses:
Depreciation Expense $125
Salary Expense $5,700
Insurance Expense $3,100
Utilities Expense $220
Plumbing Expense $260
Rent Expense $190
Total Operating Expenses $125 + $5,700 + $3,100 + $220 + $260 + $190 = $9,595
Net Income = Gross Profit from Sales - Total Operating Expenses
Net Income = $22,716 - $9,595 = $13,121
Therefore, the income statement for Hansen Realty for the year ended December 31, 2023, is as follows:
HANSEN REALTY
Income Statement
For Year Ended December 31, 2023
Net Sales $32,826
Cost of Goods Sold $10,110
Gross Profit from Sales $22,716
Operating Expenses:
Depreciation Expense $125
Salary Expense $5,700
Insurance Expense $3,100
Utilities Expense $220
Plumbing Expense $260
Rent Expense $190
Total Operating Expenses $9,595
Net Income $13,121
Step-by-step explanation: