Prepare an income statement showing revenues-expenses

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Reference no: EM13144674

Lopez Corporation began operations at the start of 2010. During the year, it made cash and credit sales totaling $974,000 and collected $860,000 in cash from its customers. If purchased inventory costing $508,000, paid $25,000 for dividends and the cost of goods sold was $445,000. The corporation incurred the following expenses:

Salary expense $180,000
Interest expense 15,000
Insurance expense 10,000
Supplies expense 18,000
Income tax expense 65,000

Required:

a. Prepare an income statement showing revenues, expenses, pretax income, income tax expense, and net income for the year ended December 31, 2010.

Reference no: EM13144674

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