Question

Given the following information, prepare an income statement for Jonas Brothers Cough Drops.

Selling and administrative expenses	$328,000
Depreciation expenses	195,000
Sales	1,660,000
Interest expenses	129,000
Cost of goods sold	560,000
Taxes	171,000

Short answer

The net income after tax arrives at $277,000.

Step-by-step solution

Cost of goods sold 

Cost of goods sold means the cost incurred by an organization directly related to the sale of goods or services. It is a direct cost incurred by the company to produce the goods.

Income statement for Jonas Brothers Cough Drops 

Particulars	Amount ($)
Sales	1,660,000
Less: Cost of goods sold	560,000
Gross profit	1,100,000
Less: Selling and administrative expenses	328,000
Less: Depreciation expenses	195,000
Less: Interest expenses	129,000
Operating income	448,000
Taxes	171,000
Net income after tax	277,000