Question

The CEO of Smart Phone Cases, LLC is preparing a loan application to be used for expansion. Using the data below (only), prepare an Income Statement. Within this Income statement, include totals for Cost of Goods Sold, Gross Margin, Sales General, and Administrative, Earnings before Interest and Taxes, Pretax Income, and Net Income. Also compute the Profit Margin on Sales =Net Income / Revenue. Submit using a spreadsheet.   

Price each
$19.95   

Quantity Sold
50,000   

Production Labor Costs each
$8.25   

Material Costs
$2.00   

Labor Overhead
35% of labor

Marketing
$45,000
   
Depreciation
$8,000
   
Research and Development
$18,000
   
Administrative
$52,000
   
Interest Expense
$2,600
   
Taxes
25.0% of pretax Income

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Income Statement

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