Answer to Question #249776 in Accounting for Another you

Question #249776

A. Evaluate the financial statement drawn by answering the questions below:
BloomsCompany
Statement of FinancialPerformance
As of December 31,2020
a. Revenues - 5,400,000
b. Cost of Sales - 3,000,000
c. OperatingExpenses(excluding depreciation)-900,000
d. DepreciationExpense - 200,000, 4,100,000
e. Net Income - 1,300,000
-Thefollowing balances are reported on December31:
a. Cash in 2019 is 450,000; in 2020 is 1,170,000
b. AccountsRecievable in 2019 is 1,010,000; in 2020 is 1,170,000
c. Inventories in 2019 is 250,000; in 2020 is 320,000
d. AccountsPayable in 2019 is 720,000; in 2020 700,000
-Additional cash transactions are as follows:
1. The company bought a delivery truck for 2,000,000 cash.
2. A long term loan for 1,800,000 was obtained from the bank .
3. The proprietress Fleur Elise withdrew 200,000.
(Did the company prepare the correct heading for its income statement? How should you write the heading of this financial report?)

Expert's answer

No, the company did not prepare a proper heading for its income statement.

A proper income statement should be written as follows:

Blooms Company

Income Statement

For the year ended December 31, 2020