Question

1. For each of the following items in Old Time Cable, Inc.'s financial statements, indicate (1) whether it is reported in the income statement (U/S) or balance sheet (B/S) and (2) whether it is an asset, liability, stockholders' equity, revenue, or expense account. The first item is given as an example 2. Old Time Cable also reported $5,840 in operating expenses. Based on the available information, determine the company's net profit margin expressed as a percent Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each of the following items in Old Time Cable, Inc.'s financial statements, indicate (1) whether it is reported in the income statement (1/5) or balance sheet (B/S) and (2) whether it is an asset. liability, stockholders' equity, revenue, or expense account. The first item is given as an example. Item (2) Account Type Cash 1 Service Revenue (1) Statement $ 1.630 BS 8.500

Answer 1

Item Amount $ Statement Account Type Cash Asset Service Revenue 1,630 8,500 1,650 B/S I/S B/S Revenue Accounts Receivable Asset 680 I/S 950 Interest Expense Defferred Revenue Income tax expense Retained earnings B/S I/S Expense Liability Expense Stock 400 270 B/S Net Profit margin is = ((Service Reveue-Operating expenses-Interest expense-Income tax expense)/Service revenue)*100 Net Profit margin is = ((8500-5840-680-400)/8500)*100 Net Profit margin is = 18.58823529% Net Profit margin is = 18.59%