- Description
FIN 575 Week 4 Budget and Profit and Loss Statement
Resource: Budget and Profit and Loss Statement Grading Guide
Purpose of Assignment
The purpose of this assignment is to allow students to gain the necessary knowledge to manage cost and determine project viability through capital budgeting techniques, so they can effectively minimize the cumulative error between the projected values and actual values over the relevant time horizon.
Note: The official term Income Statement is also known informally as Profit and Loss Statement.
Assignment Steps
There are issues with the week 4 assignment as given. Please use the following information to create the income statement:
Cost of goods sold 75,000
Sales 100,000
Commissions expense 5,000
Advertising expense 2,000
Interest expense 500
Interest Revenues 5,000
Office Supplies expense 3,500
Gain on sale of assets 3,000
Office equipment expense 2,500
Loss from lawsuit 1,500
The assignment steps will be as follows:
Assignment Steps
Conduct an internet search for an income statement or use the example located in the textbook or use one from your previous assignment.
Analyze the revenue and expense items based on information collected from any income statement. Use an internet search or use the example located in the textbook for the course, or one you used in previous assignments.
Write a 350-word essay on the revenue and expense items found on an income statement.
Create a Profit and Loss Statement (Income Statement) following the income statement format, using the items given below.
Cost of goods sold 75,000
Sales 100,000
Commissions expense 5,000
Advertising expense 2,000
Interest expense 500
Interest Revenues 5,000
Office Supplies expense 3,500
Gain on sale of assets 3,000
Office equipment expense 2,500
Loss from lawsuit 1,500
Format assignment essay portion consistent with APA guidelines.
Submit your assignment.