Q2.

Waleed's Manufacturing provided the following information for the month ended March 31:

Sales Revenue
$ 500,000
Beginning Finished Goods Inventory
100,000
Ending Finished Goods Inventory
200,000
Cost of Goods Manufactured
300,000
Selling and Administrative Expenses
50,000

Prepare the income statement.

Waleed's Manufacturing
Income Statement
month ended March 31:

Revenues:

Sales Revenue $500,000

Cost of Goods Sold

Beginning Finished Goods Inventory 100,000

Cost of Goods Manufactured 300,000

Cost of Goods Available for Sale 400,000

Ending Finished Goods Inventory

(200,000)

Cost of Goods Sold 200,000

Gross Profit 300,000

Selling and Administrative Expenses 50,000

Operating Income
$250,000