Classification shifting by managers leads to under-reporting of total expenses and over-statement of bottom-line net income....
In a traditional format income statement, the gross margin minus selling and administrative expenses equals net operating income. True or False True False
Calculator The form of income statement that emphasizes total revenues and total expenses in determining net income is called t a. multiple-step statement Ob. single-step statement Oc. cash flow statement d. operating income statement
A multiple-step income statement format shows detailed computations of net sales and other costs and expenses, and reports subtotals for various classes of items. Select one: True False
Please Answer :)
4. (2 Pts) Which statement below is false? a. The bottom line measure of performance in business is return on net worth. b. Return on Total Assets is measured by Net Profit (BT)/Total Assets. c. Leverage is a measure of financial risk of capitalization. d. Gross Margin is the dollars remaining to cover variable expenses and fixed costs including profit. e. Profit is a variable cost of doing business.
Whirly Corporation's most recent income statement is shown below: Sales (8,600 units) Variable expenses Total $ 258,000 172,000 Per Unit $30.00 20.00 $10.00 Contribution margin Fixed expenses 86,000 54,100 Net operating income $ 31,900 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case Independently): 1. The sales volume increases by 100 units. Whirly Corporation Contribution Income Statement Total Per Unit 2. The sales volume decreases by 100 units. Whirly Corporation Contribution Income...
Variable costing eliminates the motive to over produce because the amount of net income is not affected by the number of units produced. This statement is Multiple Choice true. false.
What is total expenses on this statement Revenues 30,737 Investments & other income o total Revenues 30, 737 COGS 22,910 Selling general t adminstrative expenses 6,504 Depreciatia 509 Lease termination charges 48 Interest expense 450 Other Non-operating gains (losses) (37) Income tax expense benefit) 113 Net Income 166
Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 325 bikes were produced and 215 were sold; this left 110 bikes in ending inventory. The income statement information under variable costing follows. $ 344,000 134,375 Sales (215 x $1,600) Variable product cost (215 x $625) Variable selling and administrative expenses (215 x $55) 11,825 197,800 65,000 90,000 Contribution...
Income statement 2014 $1,500,000 750,000 Sales COGS Gross profits Operating Expenses Selling expenses General admin. expenses Lease expenses Depreciation expense total operating expenses 100,000 50,000 10,000 40,000 Operating profits Interest 20,000 Net profits before taxes Taxes Net profits after taxes Preferred dividends 10,000 Earnings available for common stockholders Tax table Range of taxable income 100,000-335,000 335,000-10,000,000 Tax calculation 22,250 + (39% x amount over 100,000) 113,900 + ( 34% x amount over 335,000)
Exercise 19-6 Absorption costing income statement LO P2 1.18 points Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 425 bikes were produced and 255 were sold, this left 170 bikes in ending inventory. The income statement information under variable costing follows. eBook Sales (255 * $1,650) Variable product cost (255 x $700) Variable selling and administrative expenses...