EB1.

LO 2.1Winterfell Products manufactures electrical switches for the aerospace industry. For the year ending 2019, they reported these revenues and expenses. Use this information to construct an income statement for the year 2019.

Winterfell

Income statement for the year ended December 31, 2019

$

Sales revenue 865,000

Cost of good sold (354,000)

Gross profit 511,000

Operating expenses (315,000)

Net income 196,000

Explanation:

The net income for the year ended December 31, 2019 is obtained by deducting cost of goods sold and operating expenses from sales revenue.

Gross profit is the difference between sales revenue and cost of goods sold.