Homework Answers
|
Sales |
$800000 |
|
Cost of Goods Sold ($800000 * 70%) |
$560000 |
|
Gross Profit |
$240000 |
|
Selling and administrative expense ($800000 * 15%) |
$120000 |
|
Depreciation |
$10000 |
|
Operating profit |
$110000 |
|
Interest Expense |
$12000 |
|
Earnings before taxes |
$98000 |
|
Taxes ($98000 * 30%) |
$29400 |
|
Earnings after taxes |
$68600 |
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preparing the income statement
Question 4 Total: 20 marks Part A Brown Auto Wholesalers had sales...
Lemon Auto Wholesalers had sales of $1,180,000 last year, and cost of goods sold represented 73...
Lemon Auto Wholesalers had sales of $1,180,000 last year, and cost of goods sold represented 73 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $12,000 and interest expense for the year was $13,000. The firm's tax rate is 30 percent a. Compute earnings after taxes Lemon Auto Wholesalers Income Statement
Carr Auto Wholesalers had sales of $1,510,000 in 2015, and cost of goods sold represented 76...
Carr Auto Wholesalers had sales of $1,510,000 in 2015, and cost of goods sold represented 76 percent of sales. Selling and administrative expenses were 12 percent of sales. Amortization expense was $19,000 and interest expense for the year was $10,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using Percentage-of-Sales Method. (Input all answers as positive values.) CARR AUTO WHOLESALERS Income Statement For the Year Ended December 31, 2015 TClick to select) Cick to select) Interest...
7. Carr Auto Wholesalers had sales of $900,000 in 2015, and cost of goods sold represented...
7. Carr Auto Wholesalers had sales of $900,000 in 2015, and cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Amortization expense was $10,000, and interest expense for the year was $8,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using percentage-of-sales method. b. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 12...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest expense Sales Selling and administrative expense Taxes value: 20.00 points Lemon Auto Wholesalers had sales of $740,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $11,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto...
increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100....
increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100. The extra sales effort will also reduce cost of goods sold to 69 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling) Depreciation expense will remain at $12,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $20,900. The firm's tax rate will remain...
Q2 B. (20 Marks) Sheryl's Shingles had sales of $10,000 in 1997. The cost of goods...
Q2 B. (20 Marks) Sheryl's Shingles had sales of $10,000 in 1997. The cost of goods sold was $6,500, general and administrative expenses were $1,000, interest expenses were $500, and depreciation was $1,000. The firm's tax rate is 35 percent. a. What is earnings before interest and taxes? b. What is net income? C. What is cash flow from operations?
9. Elgin Battery Manufacturers had sales of $800,000 in 2009 and their cost of goods sold...
9. Elgin Battery Manufacturers had sales of $800,000 in 2009 and their cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $9,000 and interest expense for the year was $9,000. The firm's tax rate is 32 percent. What is the dollar amount of taxes paid? O $167130 O $56,000 O $53,120 O $193,800
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation...
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow Marine Corporation Income Statement For the Year Ended December 31, 2019 Sales Less: Cost of Goods Sold Gross Profit Less: Selling, General & Administrative Expenses Operating profit $4,500,000 3,200,000 1,300,000 260,000 1,040,000 150,000 890,000 90,000 800,000 400,000 $ 400,000 Less: Depreciation Expense Earnings Before Interest and Taxes Less: Interest Expense Earings Before Taxes Less: Taxes (50%) Net Income Marine Corporation Assets...
full answer Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the...
full answer
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow: Marine Corporation Income Statement For the Year Ended December 31, 2019 Sales $ 4.500.000 Less: Cost of Goods Sold 3,200.000 Gross Profit 1.300.000 Less: Selling. General & Administrative Expenses 260.000 Operating profit 1.040.000 Less: Depreciation Expense 150.000 Earnings Before Interest and Taxes 890,000 Less: Interest Expense 90,000 Earnings Before Taxes 800,000 Less: Taxes (50%) 400,000 Net Income $ 400.000...
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation...
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow Marine Corporation Assets Cash Marketable Securities Accounts Receivable Inventories Investments Total current assets Plant and Equipment Less Accumulated Amortization Net plant and Equipment Total Assets Balance Sheet 2018 $45,000 175,000 240,000 230,000 70,000 $760,000 1,300,000 450,000 2019 $50,000 160,000 220,000 275,000 55,000 $760,000 1,550,000 600,000 $850,000 1,610,000 $950,000 1,710,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $110,000 Notes payable 65,000 Accrued Expenses...
Lemon Auto Wholesalers had sales of $1,180,000 last year, and cost of goods sold represented 73 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $12,000 and interest expense for the year was $13,000. The firm's tax rate is 30 percent a. Compute earnings after taxes Lemon Auto Wholesalers Income Statement
Carr Auto Wholesalers had sales of $1,510,000 in 2015, and cost of goods sold represented 76 percent of sales. Selling and administrative expenses were 12 percent of sales. Amortization expense was $19,000 and interest expense for the year was $10,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using Percentage-of-Sales Method. (Input all answers as positive values.) CARR AUTO WHOLESALERS Income Statement For the Year Ended December 31, 2015 TClick to select) Cick to select) Interest...
7. Carr Auto Wholesalers had sales of $900,000 in 2015, and cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Amortization expense was $10,000, and interest expense for the year was $8,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes using percentage-of-sales method. b. Assume the firm hires Ms. Hood, an efficiency expert, as a consultant. She suggests that by increasing selling and administrative expenses to 12...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest expense Sales Selling and administrative expense Taxes value: 20.00 points Lemon Auto Wholesalers had sales of $740,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $11,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto...
increasing selling and administrative expenses to 15 percent of sales, sales can be increased to $1,230,100. The extra sales effort will also reduce cost of goods sold to 69 percent of sales. (There will be a larger markup in prices as a result of more aggressive selling) Depreciation expense will remain at $12,000. However, more automobiles will have to be carried in inventory to satisfy customers, and interest expense will go up to $20,900. The firm's tax rate will remain...
Q2 B. (20 Marks) Sheryl's Shingles had sales of $10,000 in 1997. The cost of goods sold was $6,500, general and administrative expenses were $1,000, interest expenses were $500, and depreciation was $1,000. The firm's tax rate is 35 percent. a. What is earnings before interest and taxes? b. What is net income? C. What is cash flow from operations?
9. Elgin Battery Manufacturers had sales of $800,000 in 2009 and their cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $9,000 and interest expense for the year was $9,000. The firm's tax rate is 32 percent. What is the dollar amount of taxes paid? O $167130 O $56,000 O $53,120 O $193,800
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow Marine Corporation Income Statement For the Year Ended December 31, 2019 Sales Less: Cost of Goods Sold Gross Profit Less: Selling, General & Administrative Expenses Operating profit $4,500,000 3,200,000 1,300,000 260,000 1,040,000 150,000 890,000 90,000 800,000 400,000 $ 400,000 Less: Depreciation Expense Earnings Before Interest and Taxes Less: Interest Expense Earings Before Taxes Less: Taxes (50%) Net Income Marine Corporation Assets...
full answer
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow: Marine Corporation Income Statement For the Year Ended December 31, 2019 Sales $ 4.500.000 Less: Cost of Goods Sold 3,200.000 Gross Profit 1.300.000 Less: Selling. General & Administrative Expenses 260.000 Operating profit 1.040.000 Less: Depreciation Expense 150.000 Earnings Before Interest and Taxes 890,000 Less: Interest Expense 90,000 Earnings Before Taxes 800,000 Less: Taxes (50%) 400,000 Net Income $ 400.000...
Question 5 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow Marine Corporation Assets Cash Marketable Securities Accounts Receivable Inventories Investments Total current assets Plant and Equipment Less Accumulated Amortization Net plant and Equipment Total Assets Balance Sheet 2018 $45,000 175,000 240,000 230,000 70,000 $760,000 1,300,000 450,000 2019 $50,000 160,000 220,000 275,000 55,000 $760,000 1,550,000 600,000 $850,000 1,610,000 $950,000 1,710,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $110,000 Notes payable 65,000 Accrued Expenses...
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