Identify the errors in the following income statement:
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Identify the errors in the following income statement:
The Euclidian Company Income Statement For the Year Ended March 31, 2008
Revenue from sales:
Sales
$7,127,500
Add: Sales returns and allowances
112,300
Sales discounts
60,000
172,300
Gross sales
$7,299,800
Cost of merchandise sold
4,175,100
Income from operations
$3,124,700
Expenses:
Selling expenses
710,000
Administrative expenses
$525,000
Delivery expense
$18,100
Total expenses
1,253,100
Other expense:
$1,871,600
Interest revenue
Gross profit
80,000
$1,791,600
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