Homework Answers
Answer:
given that:
A proposed income statement of a children's clothing store:
Income Statement It is also known as "Profit and Loss statement" or 'Revenue statement" or 'Operating statement, It is the financial statement of company which provide the information about revenues and expenses of specific period.
It computes the net profit or net loss of company for a particular period and represents the financial performance of the company.
The company K has given the income statement for December 31,
20X1,in which the total sales of the company is $1,300,000 and the
net income is $220,000.
The income statement should be considered following points:
1 The title should be like. Income statement year ended December 31, 20X1
2 The value of "increase in market value of land and building° is not the part of income statement as it is not generated from sales or operation activities.
3 The cash received from loan is the part of company's liability It is not the revenue for the company.
4. The dividend is not part of income statement as it is not generated from sales or operation activities.
5 The "cost of goods sold" is the expense not the "cost of goods
purchased" of income statement.
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15-32 Income Statement Here is a proposed income statement of a children's...
15-32 Income Statement Here is a proposed income statement of a children's clothing store: $1,550,000 Kids...
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 200,000 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.
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...
Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts...
Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity 20X2 20X1 $ 300,000 $ 200,000 2,000,000 1,800,000 900,000 700,000 The return on shareholders' equity for 20X2 is: The return on shareholders' equity for 20X2 is: Multiple Choice O 20% O 8% O 22.22% O 25% Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity...
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...
2) The Income Statement for ABC Company for 2017 is as follows: Sales $3,500,000 Cost of...
2) The Income Statement for ABC Company for 2017 is as follows: Sales $3,500,000 Cost of Goods Sold 2,500,000 Gross Profit 1,000,000 Selling Expense 600,000 Administrative Expense 200,000 Total Operating Expense 800,000 Income from Operations 200,000 Income Tax Expense 50,000 Net Income 150,000 Instructions: Prepare a vertical analysis for the above income statement. (10 points)
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 81: The following information was reported on the income statement of Cannondale in one of...
Question 81: The following information was reported on the income statement of Cannondale in one of its early years of operation. Sales revenues, $450,000; Cost of goods sold, $200,000; Selling, general, and administrative, $150,000; Interest expense, $30,000. Cannondale’s gross profit and operating income would be: Gross profit Operating income A. $250,000 $70,000 B. $250,000 $100,000 C. $100,000 $70,000 D. $300,000 $70,000
3) The Income Statement for XYZ Company for 2016 and 2017 is as follows: 2017 2016...
3) The Income Statement for XYZ Company for 2016 and 2017 is as follows: 2017 2016 Sales $4,000,000 $3,500,000 Cost of Goods Sold 2,500,000 2,400,000 Gross Profit 1,500,000 1,100,000 Selling Expense 600,000 700,000 Administrative Expense 200,000 150,000 Total Operating Expense 800,000 850,000 Income from Operations 700,000 250,000 Income Tax Expense 50,000 20,000 Net Income 650,000 230,000 Instructions: Using the above comparative income statement, prepare a horizontal analysis for ABC Company. (10 points)
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...
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 200,000 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.
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...
Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity 20X2 20X1 $ 300,000 $ 200,000 2,000,000 1,800,000 900,000 700,000 The return on shareholders' equity for 20X2 is: The return on shareholders' equity for 20X2 is: Multiple Choice O 20% O 8% O 22.22% O 25% Income statement: Sales Cost of goods sold Net income 20X2 $2,500,000 1,300,000 200,000 Balance sheets: Accounts receivable Total assets Total shareholders' equity...
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...
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...
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