Homework Answers
| Answer a | |||||||||
| Cruz's Gross Profit = Net sales - Cost of goods sold = $941100 - $559600 = $381500 | |||||||||
| Answer b | |||||||||
| Gross Profit rate = (Gross Profit / Net sales)*100 = ($381500/$941100)*100 = 40.5% | |||||||||
| Gross profit rate is computed by financial statement users because this rate tells them | |||||||||
| how efficiently a company uses its materials and labor to produce and sell products profitably. | |||||||||
| Answer c | |||||||||
| Income from Operations = Gross Profit - Operating Expenses = $381500 - $220900 = $160600 | |||||||||
| Net Income = Income from operations - Interest Expense = $160600 - $11900 = $148700 | |||||||||
| Answer d | |||||||||
| If Cruz prepared a single step income statement , it would report $148700 for net income. | |||||||||
| Answer e | |||||||||
| Inventory is reported as Current asset immediately below Account Receivable. | |||||||||
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Exercise 5-12 In 2015, Matt Cruz Company had net sales of $941.100 and cost of goods...
n 2015, Matt Cruz Company had net sales of $955,000 and cost of goods sold of...
n 2015, Matt Cruz Company had net sales of $955,000 and cost of goods sold of $551,900. Operating expenses were $222,200 and interest expense was $12,600. Cruz prepares a multiple-step income statement. Compute Cruz’s gross profit. Gross profit rate. what is Cruz’s income from operations and net incom? If Cruz prepared a single-step income statement, what amount would it report for net income? In what section of its classified balance sheet should Cruz ereport inventory?
Exercise 14-13 a-b In 2020, Crane Corporation had net sales of $606,000 and cost of goods...
Exercise 14-13 a-b
In 2020, Crane Corporation had net sales of $606,000 and cost of
goods sold of $356,000. Operating expenses were $148,000, and
interest expense was $8,000. The corporation’s tax rate is 31%. The
corporation declared preferred dividends of $14,000 in 2020, and
its average common stockholders’ equity during the year was
$195,000.
Your answer is partially correct. Try again.
Prepare an income statement for Crane Corporation.
CRANE CORPORATION
Income Statement
For the Year Ended December 31,
2020December 31,...
Exercise 5-11 (Video) Pharoah provides shuttle service between four hotels near a medical center and an...
Exercise 5-11 (Video) Pharoah provides shuttle service between four hotels near a medical center and an international airport. Pharoah uses two 10-passenger vans to offer 12 round trips per day. A recent month’s activity in the form of a cost-volume-profit income statement is shown below. Sales (1,400 passengers) $36,400 Variable costs Fuel $4,077 Tolls and parking 2,507 Maintenance 696 7,280 Contribution margin 29,120 Fixed costs Salaries 11,000 Depreciation 1,300 Insurance 4,860 17,160 Net income $11,960 Your answer is incorrect. Try...
CALCULATOR PRINTER VERSION RACK NEET Exercise 5-14 (Video) (Part Level Submission) Naylor Company had $210,000 of...
CALCULATOR PRINTER VERSION RACK NEET Exercise 5-14 (Video) (Part Level Submission) Naylor Company had $210,000 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $90, and the forced costs were $570,000. Management expects per unit data and totaled costs to remain the same in 2020. The president of Naylor Company under pressure from stockholders to increase net income by $52,000 in 2020 Your answer is correct, Compute the number of...
Exercise 9-14 Mark Price Company uses the gross profit method to estimate inventory for monthly reporting...
Exercise 9-14 Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts $ 160,000 640,000 30,000 1,000,000 70,000 12,000 X] your answer is incorrect. Try again. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of net sales. The estimated inventory at May 31 246,000 $ LINK TO TEXT...
Your answer is incorrect. Try again. Flounder Corp. reported net sales of $255,600, cost of goods...
Your answer is incorrect. Try again. Flounder Corp. reported net sales of $255,600, cost of goods sold of $111,500, operating expenses of $46,500, net income of $39,900, beginning total assets of $468,300, and ending total assets of $630,500 Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, e.g. 10.5%.) Profit margin Gross profit rate
Exercise 4-05 a-b Two accountants for the firm of Elwes and Wright are arguing about the...
Exercise 4-05 a-b Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Coronado Company ($000 omitted). $4,990 4,050 60,660 17,320 Administrative expense Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense 2,780 8,070...
Fill In the Blank Question 189 * Your answer is incorrect. Try again. Net income from...
Fill In the Blank Question 189 * Your answer is incorrect. Try again. Net income from operations is generally not the same as cash provided from operations because revenues and expenses are recognized in the income statement on the basis. LINK TO TEXT Question Attempts: 1 of 3 used SAVE FOR LATER SUBMIT ANSWER 7:12 PM
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net...
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $353,000 134,500 501,000 365,000 33,400 2017 $281,000 100,000 402,000 287,000 29,700 2016 $272,000 51,500 302,000 185,000 20,300 Macaron had no preferred shares. x Your answer is incorrect. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on common shareholders' equity ratios for 2018 and 2017. 2.6. Round asset turnover...
Exercise 5-12 In 2019, Ivanhoe Company had a break-even point of $310,000 based on a selling price of $8 per unit and f...
Exercise 5-12 In 2019, Ivanhoe Company had a break-even point of $310,000 based on a selling price of $8 per unit and fixed costs of $93,000. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $429,000 Your answer is correct. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to...
Exercise 14-13 a-b
In 2020, Crane Corporation had net sales of $606,000 and cost of
goods sold of $356,000. Operating expenses were $148,000, and
interest expense was $8,000. The corporation’s tax rate is 31%. The
corporation declared preferred dividends of $14,000 in 2020, and
its average common stockholders’ equity during the year was
$195,000.
Your answer is partially correct. Try again.
Prepare an income statement for Crane Corporation.
CRANE CORPORATION
Income Statement
For the Year Ended December 31,
2020December 31,...
CALCULATOR PRINTER VERSION RACK NEET Exercise 5-14 (Video) (Part Level Submission) Naylor Company had $210,000 of net income in 2019 when the selling price per unit was $150, the variable costs per unit were $90, and the forced costs were $570,000. Management expects per unit data and totaled costs to remain the same in 2020. The president of Naylor Company under pressure from stockholders to increase net income by $52,000 in 2020 Your answer is correct, Compute the number of...
Exercise 9-14 Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 Purchases (gross) Freight-in Sales revenue Sales returns Purchase discounts $ 160,000 640,000 30,000 1,000,000 70,000 12,000 X] your answer is incorrect. Try again. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of net sales. The estimated inventory at May 31 246,000 $ LINK TO TEXT...
Your answer is incorrect. Try again. Flounder Corp. reported net sales of $255,600, cost of goods sold of $111,500, operating expenses of $46,500, net income of $39,900, beginning total assets of $468,300, and ending total assets of $630,500 Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, e.g. 10.5%.) Profit margin Gross profit rate
Exercise 4-05 a-b Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple-step versus a single-step format. The discussion involves the following 2020 information related to Coronado Company ($000 omitted). $4,990 4,050 60,660 17,320 Administrative expense Officers' salaries Depreciation of office furniture and equipment Cost of goods sold Rent revenue Selling expense Delivery expense Sales commissions Depreciation of sales equipment Sales revenue Income tax Interest expense 2,780 8,070...
Fill In the Blank Question 189 * Your answer is incorrect. Try again. Net income from operations is generally not the same as cash provided from operations because revenues and expenses are recognized in the income statement on the basis. LINK TO TEXT Question Attempts: 1 of 3 used SAVE FOR LATER SUBMIT ANSWER 7:12 PM
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $353,000 134,500 501,000 365,000 33,400 2017 $281,000 100,000 402,000 287,000 29,700 2016 $272,000 51,500 302,000 185,000 20,300 Macaron had no preferred shares. x Your answer is incorrect. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on common shareholders' equity ratios for 2018 and 2017. 2.6. Round asset turnover...
Exercise 5-12 In 2019, Ivanhoe Company had a break-even point of $310,000 based on a selling price of $8 per unit and fixed costs of $93,000. In 2020, the selling price and the variable costs per unit did not change, but the break-even point increased to $429,000 Your answer is correct. Compute the variable costs per unit and the contribution margin ratio for 2019. (Round Variable cost per unit to 2 decimal places, e.g. 2.25 and Contribution margin ratio to...
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