Total Liabilities and Owner’s

 

Income Statement, Eden’s Garden Net Sales Revenue*

 

$689,247

Cost of Goods Sold

 

 

Beginning Inventory, 1/1/xx

$78,271

 

+ Purchases

$403,569

 

Goods available for Sale

$481,840

 

– Ending Inventory, 12,31/xx

$86,157

 

Cost of Goods Sold

 

$395,683

Gross Profit

 

$293,564

Operating Expenses

 

 

Advertising

$22,150

 

Insurance

$9,187

 

Depreciation

 

 

Building

$26,705

 

Autos

$7,895

 

Equipment

$11,200

 

Salaries

$116,541

 

Uniforms

$4,018

 

Repairs and Maintenance

$9,097

 

Travel

$2,658

 

Entertainment

$2,798

 

Total Operating Expenses

 

$212,249

General Expenses

 

 

Utilities

$7,987

 

Telephone

$2,753

 

Professional Fees

$3,000

 

Postage

$1,892

 

Payroll Taxes

$11,589

 

Total General Expenses

 

$27,221

Other Expenses

 

 

Interest Expense

$21,978

 

Bad check Expense

$679

 

Miscellaneous expense

$1,248

 

Total Other Expenses

 

$23,905

Total Expenses

 

$263,375

Net Income

 

$30,189

 

*Credit sales represented $289,484 of this total.

year-end financial statements from their accountant. At their last meeting with their accountant, Shelley Edison, three months ago, the Edens had mentioned that they seemed to be having trouble paying their bills on time. “Some of our suppliers have threatened to put us on ‘credit hold, said Joe.