uarez Department Store has derived the following data from the store’s operations in the year ended December 31, 2019. Net Sales $10,000 Net Income ? Current Liabilities 2,000 Selling Expenses 1,000 Long term liabilities 1,600 Total Assets 6,800 Stockholders’ equity ? Gross Profit ? Cost of Goods Sold 7,000 Current Assets 4,000 Income tax expense and other non-operating items 220 Operating income ? General and administrative expenses 980 Plant and equipment 2,600 Other assets ? Using the given data, prepare for Juarez Department store a:  Classified balance sheet at December 31, 2019.  Classified income statement for the year ended December 31, 2019. Show supporting computations used in determining the missing amounts.  How does Income tax expense differs from normal operating expenses such as advertising and salaries? How do you present income tax expense in a classified income statement?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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uarez Department Store has derived the following data from the store’s operations in the year
ended December 31, 2019.
Net Sales $10,000
Net Income ?

Current Liabilities 2,000
Selling Expenses 1,000
Long term liabilities 1,600
Total Assets 6,800
Stockholders’ equity ?
Gross Profit ?
Cost of Goods Sold 7,000
Current Assets 4,000
Income tax expense and other non-operating items 220
Operating income ?
General and administrative expenses 980
Plant and equipment 2,600
Other assets ?
Using the given data, prepare for Juarez Department store a:
 Classified balance sheet at December 31, 2019.
 Classified income statement for the year ended December 31, 2019. Show supporting
computations used in determining the missing amounts.
 How does Income tax expense differs from normal operating expenses such as advertising
and salaries? How do you present income tax expense in a classified income statement?
 An income statement is a summary of revenues and expenses and gains and losses, ending
with net income for a specific period of time. Indicate the two traditional formats for
presenting the income statement. Which of these formats is preferable for analysis? Why?

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