Homework Answers
1) Title is incorrect. It should be “Income statement year ended December 31, 20X1”
2) Increase in the market value of land and building is not a part of income statement. Increase in market value of land and building should be excluded from income statement.
3) Cash received from loan is a liability and it should be shown in balance sheet and not in income statement. Cash received from loan should be excluded from income statement.
4) Dividends should be reduced from retained earnings and not from income statement. Dividend should be excluded from income statement.
5) Income statement should include cost of goods sold as expenditure and not cost of goods purchased. Cost of goods purchased should be excluded and cost of goods sold should be included.
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15-32 Income Statement Here is a proposed income statement of a children's clothing store: $1,550,000 Kids...
This is cost course. 15-32 Income Statement Here is a proposed income statement of a children's...
This is cost course.
15-32 Income Statement Here is a proposed income statement of a children's clothing store: $1,550,000 Kids 2 Klad Statement of Profit and Loss, December 31, 20X1 Revenues: Sales $1,300,000 Increase in market value of land and building 50,000 Cash received from loan Deduct expenses: Advertising $ 100,000 Sales commissions 60,000 Utilities 20,000 Wages 150,000 Dividends 200,000 Cost of clothes purchased 800,000 Net profit 1,330,000 $ 220,000 List and describe any shortcomings of this statement.
ACCT 2301 Contribution Income Statements Handout #10 Flint Company operates a boutique clothing boutique clothing store,...
ACCT 2301 Contribution Income Statements Handout #10 Flint Company operates a boutique clothing boutique clothing store, which purchases men's and women's specialty apparel. Flint Company reported the following operating results for 2012: Income Statement Sales revenue Cost of goods sold Gross margin Employee commissions and bonuses (5% of sales) Depreciation expense Salaries expense Shipping and delivery expense (2% of sales) Advertising expense Net income $2,000,000 (1.200.000) $ 800,000 ( 100,000) (150,000) (260,000) 40,000) 80,000) $ 170,000 Required Part 1: Prepare...
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...
Question 4 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation...
Question 4 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow: Marine Corporation Balance Sheet Assets 2019 2020 Cash $45,000 $50,000 Marketable Securities 175.000 160,000 Accounts Receivable 240,000 220,000 inventories 230,000 275,000 Investments 70,000 55.000 Total current assets $760,000 $760,000 Plant and Equipment 1,300,000 1,550,000 Less Accumulated Amortization 450,000 600,000 Net plant and Equipment S850,000 $950,000 Total Assets 1.610,000 1.710,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable S110,000 $85.000 Notes payable 65.000 10.000...
Using contribution format segmented income statement, calculate the break-even point in dollar sales for the Advanced...
Using contribution format segmented income statement, calculate
the break-even point in dollar sales for the Advanced model.
Income statement Total $ 5,000,000 Basic 3,000,000 Advanced $ 2,000,000 $ Sales Variable expenses Direct materials Direct labor 1,400,000 900,000 800,000 600,000 600,000 300,000 Sales commissions 350,000 150,0001 200,000 2,650,000 2,350,000 1,550,000 1,450,000 1,100,000 900,000 Total variable expenses Contribution margin Traceable fixed expenses: Advertising Machining Assemble and pack Order processing Setups 350,000 417,560 282,600 230,000 340,002 150,000 227,760 188,400 46,000 26,154 200,000 189,800...
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 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...
Gibson Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it...
Gibson Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the children's department has three employees. All departments are housed in a single store. In recent years, the children's department has operated at a net loss and is expected...
An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been...
An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been in business for a number of years. CULLUMBER COMPANY Income Statement For the Year Ended December 31, 2017 Revenues Net sales $901,000 Other revenues 23,320 924,320 Cost of goods sold 588,300 Gross profit 336,020 Operating expenses Selling expenses 115,540 Administrative expenses 109,180 224,720 Net earnings $111,300 As an experienced, knowledgeable accountant, you review the statement and determine the following facts. 1. Net sales...
P5.5A An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that...
P5.5A An inexperienced accountant prepared this condensed income statement for Simon Company, a retail firm that has been in business for a number of years. Prepare a correct multiple-step income statement. Simon Company Income Statement For the Year Ended December 31, 2022 Revenues Net sales $850,000 Other revenues 22,000 872,000 Cost of goods sold 555,000 Gross profit 317,000 Operating expenses Selling expenses 109,000 Administrative expenses 103,000 212,000 Net earnings $105,000 As an experienced, knowledgeable accountant, you review the statement and...
APPLICATION: (SHOW ALL CALCULATIONS) Given the following: Income Statement (End of Year, 2017) In...
APPLICATION: (SHOW ALL CALCULATIONS) Given the following: Income Statement (End of Year, 2017) Industry % of sales Net Sales 500,000 100 Less: Inventory (B) 60,000 12 Gross Purchases 200,000 40 Less: discounts 20,000 4 Net Purchases 180,000 36 Total Goods Available 240,000 48 Less: inventory (E) 75,000 10 Total Cost of Goods Sold 165,000 38 Gross Margin: 335,000 62 Less: Variable Expenses Sales Commissions 130,000 26 Deliveries 5,000 1 135,000 27 Contribution Margin 200,000 35 Less: Fixed Expenses Rent 50,000...
This is cost course.
15-32 Income Statement Here is a proposed income statement of a children's clothing store: $1,550,000 Kids 2 Klad Statement of Profit and Loss, December 31, 20X1 Revenues: Sales $1,300,000 Increase in market value of land and building 50,000 Cash received from loan Deduct expenses: Advertising $ 100,000 Sales commissions 60,000 Utilities 20,000 Wages 150,000 Dividends 200,000 Cost of clothes purchased 800,000 Net profit 1,330,000 $ 220,000 List and describe any shortcomings of this statement.
ACCT 2301 Contribution Income Statements Handout #10 Flint Company operates a boutique clothing boutique clothing store, which purchases men's and women's specialty apparel. Flint Company reported the following operating results for 2012: Income Statement Sales revenue Cost of goods sold Gross margin Employee commissions and bonuses (5% of sales) Depreciation expense Salaries expense Shipping and delivery expense (2% of sales) Advertising expense Net income $2,000,000 (1.200.000) $ 800,000 ( 100,000) (150,000) (260,000) 40,000) 80,000) $ 170,000 Required Part 1: Prepare...
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...
Question 4 (20 marks) The comparative Balance Sheets and the Income statement for the Marine Corporation are as follow: Marine Corporation Balance Sheet Assets 2019 2020 Cash $45,000 $50,000 Marketable Securities 175.000 160,000 Accounts Receivable 240,000 220,000 inventories 230,000 275,000 Investments 70,000 55.000 Total current assets $760,000 $760,000 Plant and Equipment 1,300,000 1,550,000 Less Accumulated Amortization 450,000 600,000 Net plant and Equipment S850,000 $950,000 Total Assets 1.610,000 1.710,000 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable S110,000 $85.000 Notes payable 65.000 10.000...
Using contribution format segmented income statement, calculate
the break-even point in dollar sales for the Advanced model.
Income statement Total $ 5,000,000 Basic 3,000,000 Advanced $ 2,000,000 $ Sales Variable expenses Direct materials Direct labor 1,400,000 900,000 800,000 600,000 600,000 300,000 Sales commissions 350,000 150,0001 200,000 2,650,000 2,350,000 1,550,000 1,450,000 1,100,000 900,000 Total variable expenses Contribution margin Traceable fixed expenses: Advertising Machining Assemble and pack Order processing Setups 350,000 417,560 282,600 230,000 340,002 150,000 227,760 188,400 46,000 26,154 200,000 189,800...
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...
Gibson Boot Co. sells men's, women's, and children's boots. For each type of boot sold, it operates a separate department that has its own manager. The manager of the men's department has a sales staff of nine employees, the manager of the women's department has six employees, and the manager of the children's department has three employees. All departments are housed in a single store. In recent years, the children's department has operated at a net loss and is expected...
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