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From the screenshot, it looks like you're working on an income statement for Hansen Realty for the year ending December 31, 2023. Here’s an analysis based on the visible items:

1. **Net Sales**: This field is marked correct, but it shows "$0" as the input, which might need verification. "Net Sales" should typically reflect total sales revenue minus any returns, allowances, or discounts.
   
2. **Gross Profit from Sales**: This field is also marked with "$0," and is incorrect. Gross profit is calculated as net sales minus the cost of goods sold (COGS). For a real estate company, COGS might not be relevant unless it involves goods sold; if this doesn't apply, it might be $0 by default, but this would need confirmation based on the company's specifics.

3. **Operating Expenses**: Each of the following expenses is listed:
   - Plumbing
   - Insurance
   - Salary
   - Utilities
   - Rent
   - Depreciation
   These are marked correct but currently show "$0" as the amount. In a real income statement, these values would reflect the company's actual costs in each category.

4. **Cost of Merchandise (Goods) Sold**: This field is marked incorrect with "$0." In most service or realty companies, COGS may not apply, or it could be relevant only if the company sells physical goods (like properties under certain accounting treatments). If applicable, this line should reflect the cost associated with the goods sold, otherwise, it may indeed be $0.

5. **Total Operating Expenses**: This value is currently "$0," which is possibly incorrect. This line should sum up all the operating expenses listed.

Would you like guidance on calculating each section or specific instructions on what typically goes into a realty company's income statement?

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Here are some related questions that might help you understand income statement preparation better:

1. How is gross profit calculated in companies that provide services rather than goods?
2. Why would a real estate company possibly not have a cost of goods sold (COGS)?
3. What specific expenses typically fall under "Operating Expenses" in the real estate industry?
4. How is depreciation calculated, and why is it included as an operating expense?
5. What is the significance of calculating the total operating expenses accurately?

**Tip**: Ensure that every item on the income statement reflects actual business activities for better financial analysis and accuracy.

How to complete the income statement for Hansen Realty for the year ending December 31, 2023, focusing on items such as net sales, gross profit, operating expenses, and the cost of goods sold.

Learn how to complete the income statement for Hansen Realty for the year ending December 31, 2023. This includes calculating net sales, gross profit, total operating expenses, and assessing the applicability of cost of goods sold (COGS) in a real estate context.

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