identify the errors in the following income statement 665775
Identify the errors in the following income statement:
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The Euclidian Company Income Statement For the Year Ended March 31, 2008 |
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Revenue from sales: |
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Sales |
$7,127,500 |
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Add: Sales returns and allowances |
112,300 |
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Sales discounts |
60,000 |
172,300 |
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Gross sales |
$7,299,800 |
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Cost of merchandise sold |
4,175,100 |
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Income from operations |
$3,124,700 |
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Expenses: |
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Selling expenses |
710,000 |
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Administrative expenses |
$525,000 |
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Delivery expense |
$18,100 |
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Total expenses |
1,253,100 |
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Other expense: |
$1,871,600 |
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Interest revenue |
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Gross profit |
80,000 |
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$1,791,600 |
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