ANN COMPANY

Income Statement
For the month ended December 31,
2022

Sales 365,000
Less: Cost of Sales 115,000
Gross Profit 250,000
Less: Sales Returns &
Discounts
Sales Returns 2,500
Sales Discounts 1,850
Net
Sales 245,650
Less: Operating Expenses 85,000
Accumulated Depreciation 10,000
Allowance for bad depts 15,000
Less: Accrued Expenses 28,500
Less: Prepaid Expenses 45,000
Total Expenses: 62,150
Less: Income Tax Payment 20,000
Net Income: 42,150
ANN COMPANY
 Statement of Financial
Position
December 31, 2022

ASSETS
Current Assets
Cash P 12,4500
Accounts
Receivable 95,000
Less: Allowance for bad debts -15,000
Inventor
y 145,000
Prepaid Expenses 45,000
Notes Receivable   25,000
Total current Assets 419,500
Non-Current Assets
Property, plant and Equipment 110,000
Less: Accumulated Depreciation   -10,000
Total Non- Current Assets   100,000
P
TOTAL ASSETS   51,9500

LIABILITIES AND EQUITY

Current Liabilities
Accounts Payable P 35,500
Accrued Expenses 28,500
Notes Payable   17,500
Total Liabilities 81,500
Equity   438,000
Total Equity   438,000
P
TOTAL LIABILITIES AND EQUITY   519,500