WALGREEN CO. Income Statement For the Year ended August 31, 2011 (in millions) Revenues: Net $72,184 Other Income 434 Total revenues/ income $72,618 Expenses: Cost of 51,692 Selling, general and administration expense 16,561 Interest Expense 71 Total expenses 68,324 Pretax income 4,294 Income tax expense 1,580 Net earnings $2,714 *Note that for income taxes” is a common synonym for tax “Provision “Income expense.” E1–8. NEIGHBORHOOD REALTY, INCORPORATED Income Statement For the Year Ended December 31, 2015 Revenues: Commissions earned ($150,900+$16,800) $167,700 Rental service fees 20,000 Total revenues $187,700 Expenses: Salaries expense 62,740 Commission expense 35,330 Payroll tax expense 2,500 Rent expense ($2,475+$225)* 2,700 Utilities expense 1,600 Promotion and advertising expense 7,750 Miscellaneous expenses 500 Total expenses (excluding income taxes) 113,120 Pretax income 74,580 Income tax expense 24,400 Net Income $50,180 *$2,475 has been paid for 11 months ($225 per month) plus $225 owed for December.
WALGREEN CO. Income Statement For the Year ended August 31, 2011 (in millions) Revenues: Net $72,184 Other Income 434 Total revenues/ income $72,618 Expenses: Cost of 51,692 Selling, general and administration expense 16,561 Interest Expense 71 Total expenses 68,324 Pretax income 4,294 Income tax expense 1,580 Net earnings $2,714 *Note that “Provision for income taxes” is a common synonym for “Income tax expense.” E1–8. NEIGHBORHOOD REALTY, INCORPORATED Income Statement For the Year Ended December 31, 2015 Revenues: Commissions earned ($150,900+$16,800) $167,700 Rental service fees 20,000 Total revenues $187,700 Expenses: Salaries expense 62,740 Commission expense 35,330 Payroll tax expense 2,500 Rent expense ($2,475+$225)* 2,700 Utilities expense 1,600 Promotion and advertising expense 7,750 Miscellaneous expenses 500 Total expenses (excluding income taxes) 113,120 Pretax income 74,580 Income tax expense 24,400 Net Income $50,180 *$2,475 has been paid for 11 months ($225 per month) plus $225 owed for December.