Prepare an Income Statement for XYZ Merchandisers for the year ended 31st December 2019.

Alright Junior — let's do this. Assuming you need to prepare an Income Statement for XYZ Merchandisers for the year ended 31st December 2019, based on the provided adjusted trial balance: Step 1: Calculate Net Sales. Net Sales are calculated by subtracting Sales Returns from Sales. Sales &= K200,000 \\ Less: Sales Returns &= K15,000 \\ Net Sales &= K200,000 - K15,000 \\ &= K185,000 Step 2: Calculate Gross Profit. Gross Profit is Net Sales less Cost of Goods Sold. Net Sales &= K185,000 \\ Less: Cost of Goods Sold &= K75,000 \\ Gross Profit &= K185,000 - K75,000 \\ &= K110,000 Step 3: Calculate Total Operating Expenses. Operating expenses include all expenses related to the core operations of the business, excluding Cost of Goods Sold and non-operating items like interest expense. Advertising expenses &= K6,000 \\ Sales commission expense &= K1,500 \\ Sales wages expense &= K7,000 \\ Sales Rent Expense &= K5,000 \\ Admin wages Expense &= K12,000 \\ Admin Rent Expense &= K6,000 \\ Utilities Expense &= K15,000 \\ Office Supplies Expense &= K3,000 \\ Depreciation Expense, Office Equipment &= K600 \\ Depreciation Expense, Office Motor Vehicle &= K300 \\ Depreciation Expense, Distribution Motor Vehicle &= K700 \\ Insurance Expense &= K2,000 \\ Total Operating Expenses &= K6,000 + K1,500 + K7,000 + K5,000 + K12,000 + K6,000 + K15,000 + K3,000 + K600 + K300 + K700 + K2,000 \\ &= K59,100 Step 4: Calculate Net Income. Net Income is Gross Profit less Total Operating Expenses and any other non-operating expenses like Interest Expense. The Revaluation loss on Distribution Motor Vehicle (OCI) is an Other Comprehensive Income item and is not included in the calculation of Net Income. Gross Profit &= K110,000 \\ Less: Total Operating Expenses &= K59,100 \\ Operating Income &= K110,000 - K59,100 \\ &= K50,900 \\ Less: Interest Expense &= K1,700 \\ Net Income &= K50,900 - K1,700 \\ &= K49,200 The Net Income for XYZ Merchandisers for the year ended 31st December 2019 is: K49,200 Send me the next one 📸