Question

Items from the accounts of Anarel Distributors at March 31, 2017, follow, listed in alphabetical order. For simplicity, all operating expenses are summarized in the General Expenses account and the Selling Expenses aco uses the periodic inventory system. (Click the icon to view the accounts.) 1. Required Prepare Anarel Distributors' multi-step income statement for the year ended March 31, 2017. The ending inventory at the end of the period is $178,300. Corry Anarel, owner of the company, strives to earn a gross margin percentage of at least 50 percent and a net income percentage of 20 percent (Net income percentage = Net income / Net sales revenue). Did Ar these goals? Show your calculations. Begin with the heading, then complete the body of the statement, one section at a time, as presented. (Use a minus sign or parentheses for any losses.) Balance Sheet i More Info Income Statement 35000 For the Year Ended March 31, 2017 Cash Less: Cost of goods sold Accumulated amortization Net sales revenue Cost of goods sold: Selling expenses Accounts Payable . . . . . . . . . . . $ Accounts Receivable ........ Accumulated Amortization -Equipment C. Anarel, Capital............ C. Anarel, Withdrawals ....... Cash Equipment ................. General Expenses ............ Interest Expense ............. Interest Payable............. 77,000 Interest Revenue . . . . . . . . . . . . . S 780 107,500 Inventory: March 31, 2016 ..... 163,000 Note Payable, Long-Term .... 118,000 102,000 Purchases ................ 1,102,200 179,000 Salaries Payable ............. 8,600 80,000 Sales Discounts................ 26,500 35,000 Sales Returns and 417,780 Allowances 55,000 214,000 Sales Revenue .............. 2,100,000 10,000 Selling Expenses............. 361,000 4,600 Supplies.................... 43,000 Unearned Sales Revenue ...... 25,000 Interest expense Cost of goods available for sale Less: Unearned sales revenue Accounts payable Net sales revenue Choose from any list or enter any number in the input fields and then continue to the

Answer 1

B Anarel Distributors Income Statement For the year ended March 31, 2017 3 4 Sales Revenue 5 Less: Sales Discounts 6 Less: Sales Returns and Allownaces $ 7 Net Sales Revenue 8 Cost of Goods Sold 9 Beginning Inventory $2,100,000 26,500 55,000 | $ 81,500 $2,018,500 $ 163,000 $1,102,200 10 Add: Purchases 11 Cost of goods available for sale 12 Less: Ending Inventory $1,265,200 $ 178,300 13 Cost of Goods Sold $1,086,900 14 Gross Profit 15 Less: Expenses Selling Expenses General Expenses 18 Operating Income 19 Less: Interest Expense 20 Net Income $ 931,600 $ 361,000 $ 214,000 | $ 575,000 $ 356,600 16 17 10,000 $ 346,600 21

B Anarel Distributors Income Statement For the year ended March 31, 2017 4 Sales Revenue 5 Less: Sales Discounts 6 Less: Sales Returns and Allownaces 55000 7 Net Sales Revenue 2100000 26500 =SUM(B5:B6) |=C4-C6 8 Cost of Goods Sold 9 Beginning Inventory 10 Add: Purchases 11 Cost of goods available for sale 12 Less: Ending Inventory 13 Cost of Goods Sold 14 Gross Profit 15 Less: Expenses Selling Expenses General Expenses 18 Operating Income 19 Less: Interest Expense 20 Net Income 163000 1102200 =B9+B10 178300 =B11-B12 =C7-C13 361000 16 214000 |=SUM(B16:B17) =C14-C17 10000 =C18-C19 17 21

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