do you want the income statement to report one or more of the following expenses 626278

Assume that you are one of the major shareowners of the private business whose annual income statement is shown below. You aren’t a manager of the business or on its board of directors, but as an outside investor, you’re vitally interested in how the business is doing financially. So you carefully read the business’s financial statements, especially its income statement. You depend on the business making a profit in order to pay dividends from profit to its shareowners. Are you satisfied with the extent of expense disclosure in the income statement? Do you want the income statement to report one or more of the following expenses?

• Compensation of officers

• Salaries and wages of employees

• Repairs and maintenance

• Bad debts

• Rents

• Taxes and licenses

• Depreciation

• Advertising

• Pension and profit-sharing plans

• Employee benefit plans

Sales Revenue	$26,000,000.00
Cost of Goods Sold Expense	14,300,000
Gross Margin	$11,700,000.00
Selling and General Expenses	8,700,000
Operating Earnings	$3,000,000.00
Interest Expense	400,000
Earnings Before Income Tax	$2,600,000
Income Tax Expense	910,000
Net Income	$1,690,000