Karla Company Karla Company

Income Statement - FUNCTIONAL Income Statement - NATURAL

Year ended December 31, 2023 Year ended December 31, 2023
Net Sales Revenue 7,700,000 Net Sales Revenue 7,700,000
Cost of Sales -5,000,000 Other Income 400,000
Gross Income 2,700,000 Total 8,100,000
Other Income 400,000 Expenses:
Total Income 3,100,000 Increases in Inventory -500,000
Expenses: Net Purchases 5,500,000
Distribution Costs 950,000 Freight-out 175,000
Administrative Expenses 800,000 Salesmen's commission 650,000
Other Expenses 100,000 1,850,000 Depreciation 425,000
Income before Tax 1,250,000 Officer's Salaries 500,000
Income Tax -250,000 Other Expenses 100,000 6,850,000
Net Income 1,000,000 Income before Tax 1,250,000
Income Tax -250,000
Note 1 - Net Sales Revenue Note 4 - Distribution Costs Net Income 1,000,000
Gross Sales 7,850,000 Freight out 175,000
Sales returns and allowances -140,000 Salesmen's commission 650,000 Note 1 - Net Sales Revenue Note 4 - Net Purchases
Sales Discounts -10,000 Depreciation - Store Equipment 125,000 Gross Sales 7,850,000 Purchases 5,250,000
Net Sales Revenue 7,700,000 Total Distribution Costs 950,000 Sales returns and allowances -140,000 Freight in 500,000
Sales Discounts -10,000 Purchase returns and allowances -150,000
Note 2 - Cost of Sales Note 5 - Administrative Expenses Net Sales Revenue 7,700,000 Purchase Discounts -100,000
Inventory, Jan. 1 1,000,000 Officer's Salaries 500,000 Total 5,500,000
Purchases 5,250,000 Depreciation - Office Equipment 300,000 Note 2 - Other income
Freight in 500,000 Total Administrative Expenses 800,000 Rental Income 250,000 Note 5 - Depreciation
Purchase returns and allowances -150,000 Dividend Income 150,000 Depreciation - Store Equipment 125,000
Purchase Discounts -100,000 Note 6 - Other Expenses Total Other Income 400,000 Depreciation - Office Equipment 300,000
Net Purchases 5,500,000 Loss on Sale of Equipment 50,000 Total 425,000
Goods Available for Sale 6,500,000 Loss on Sale of Investment 50,000 Note 3 - Increases in Inventory
Inventory, Dec. 31 1,500,000 Total Other Expenses 100,000 Inventory, Dec. 31 1,500,000 Note 6 - Other Expenses
Cost of Sales 5,000,000 Inventory, Jan. 1 -1,000,000 Loss on Sale of Equipment 50,000
Increases in Inventory 500,000 Loss on Sale of Investment 50,000
Note 3 - Other income Total Other Expenses 100,000
Rental Income 250,000
Dividend Income 150,000
Total Other Income 400,000
 Exemplar Company
Statement of Financial Position
December 31, 2019

ASSETS
Current Assets
Cash and Cash Equivalents 500,000
Trading Securities 280,000
Trade and Other Receivables 640,000
Inventories 1,300,000
Prepaid Expenses 70,000
Total Current Assets 2,790,000

Noncurrent Assets
Property, Plant and Equipment 5,300,000
Long-term Investments 1,310,000
Intangible Assets 3,350,000
Other Noncurrent Assets 150,000
Total Noncurrent Assets 10,110,000

Total Assets 12,900,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Trade and Other Payables 1,000,000

Noncurrent Liabilities
Bonds Payable 5,000,000
Premium on Bonds Payable 1,000,000
Total Noncurrent Liabilities 6,000,000

Total Liabilities 7,000,000

Shareholders' Equity
Share Capital 7,000,000
Reserves 700,000
Retained Earnings (Deficit) -1,800,000
Total Shareholders' Equity 5,900,000

Total Liabilities and Shareholders' Equity 12,900,000