WAIN ATHLETIC GEAR Cornwall Street Store Income Statement For the Year Ending February 28 Sales revenue $ 14,300,000 Costs Cost of goods sold $ 7,289,000 Advertising 1,441,000 Store administrative salaries 995,000 Sales commissions 1,076,000 Leases and utilities 2,120,000 Allocated corporate support 1,642,000 Total costs $ 14,563,000 Net loss before tax benefit $ (263,000) Tax benefit at 25% (65,750) Net loss $ (197,250)
WAIN ATHLETIC GEAR, a well-known athletic apparel retailer, has released its income statement for the year ending February 28. This document provides a comprehensive overview of the store’s financial performance during the specified period. In this essay, we will analyze the income statement, discussing key financial figures, and exploring potential insights into the store’s operations.
WAIN ATHLETIC GEAR reported total sales revenue of $14,300,000 for the year ending February 28. Sales revenue represents the total income generated from the sale of athletic gear during this period. This figure is critical as it forms the basis for calculating profitability and assessing the overall health of the business.
Cost of Goods Sold (COGS) is a significant expense category for any retail business. WAIN ATHLETIC GEAR’s COGS amounted to $7,289,000 during the year. This includes expenses related to the production and procurement of athletic gear, and it directly impacts the store’s gross profit.
Advertising, a vital component of any successful retail business, cost the store $1,441,000. Effective advertising campaigns can drive sales and brand recognition, but they also represent a considerable financial outlay.
Store administrative salaries and sales commissions are essential to maintaining the store’s daily operations and motivating its sales team. In this fiscal year, administrative salaries accounted for $995,000, while sales commissions amounted to $1,076,000.
Leases and utilities, another crucial expense category, totaled $2,120,000. This includes rent and essential utility bills required to keep the store’s physical location operational.
Allocated corporate support expenses amounted to $1,642,000. These expenses typically include support services provided by the parent company, such as HR, finance, and IT.
WAIN ATHLETIC GEAR reported a net loss of $(197,250) for the year ending February 28. This means that the store’s total expenses exceeded its sales revenue by this amount. While a net loss is not uncommon in the retail industry, it prompts a closer look at the store’s financial performance.
One noteworthy aspect is the tax benefit of $65,750, which was applied at a rate of 25%. This tax benefit reduced the net loss, mitigating the overall financial impact.
In conclusion, the income statement for WAIN ATHLETIC GEAR Cornwall Street Store for the year ending February 28 provides a snapshot of the store’s financial health. While the store generated substantial sales revenue, it also incurred significant expenses, resulting in a net loss. The tax benefit partially offset this loss, making the financial situation more favorable.
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