Prepare an income statement for Allstar for the past month

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Problem - Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales commissions costs of $42,000, technology costs of $71,000, and research and development costs of $140,000. Selling expenses were $12,000, and administrative expenses equaled $30,000. Sales totaled $475,000.

Required -

1. Prepare an income statement for Allstar for the past month.

2. Briefly explain why Allstar's income statement has no line item for Cost of Goods Sold.

Reference no: EM132453389

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