Chapter 10
The Statement of Cash Flow
524
Twely Inc.
Income Statement
For the Year Ended December 31, 2016
Sales
$140,000
Cost of Goods Sale
76,000
Gross Profit
64,000
Expenses
Depreciation Expense
8,200
Other Operating Expenses
14,790
Total Expenses
22,990
Operating Income
41,010
Other Revenue
Gain on Sale of Investment
1,100
Gain on Sale of Equipment
2,500
Operating Income before Tax
44,610
Income Tax Expense
13,383
Net Income (Loss)
$31,227
Notes: There was no sale of land.
Equipment and long-term investment were purchased for
amounts of $30,000 and $10,500 respectively.
The long-term investment is held at cost.
The company declared and paid dividends during the year.
The company did not pay off any amount of the bank loan.
