Interpreting Financial Statements
Consider the following income statement:
|
Commission revenue |
$120,000 |
|
|
Rental revenue |
9,900 |
|
|
Interest income |
4,100 |
|
|
Total revenue |
$134,000 |
|
|
Salaries expense |
54,000 |
|
|
Depreciation expense |
23,000 |
|
|
Interest expense |
2,550 |
|
|
Miscellaneous expense |
10,400 |
(89,950) |
|
Operating income |
44,050 |
|
|
Income taxes |
(16,825) |
|
|
Extraordinary items, net of tax |
12,000 |
|
|
Net income |
$39,225 |
|
Required
a. Review and analyze this income statement, using vertical analysis.
b. What other items might usually be found in such an income statement (what is missing)?