Question:

Determine the figures for income statement?

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vases@$60 paperwieghts 40 tumblers 10. sold in bundles @680.ships 5bundles per wk.80 s&h costs are$6050 for 10wks bundles range form 2300,3300,2800 1 employee wks 20per wk @15per hr.

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  1. An accurate statement cannot be derived from the data you provided.  However, the way you would determine the figures for your income statement is as follows.  It is a two step process.  Step one is to calculate the Cost of Goods Sold.  Step two is to determine your profit/loss.

    Step one:  Cost of Goods Sold is equal to the sum of the cost of the beginning inventory plus purchases minus the cost of the ending inventory.  When calculating the cost of inventory inbound shipping and handling are considered part of the cost.  Inventory valuation can be based on FIFO, LIFO, average cost or actual cost.  (Look up the alternatives on Wikipedia if you don't know what I am talking about.)

    Step two:

    Profit/Loss is equal to the sum of your income minus the sum of the Cost of Goods Sold plus your expenses (including outbound shipping and handling).

    Hope this helps

    Jerry-the-bookkeeper

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