Question

150 120 LO5-3

Answer 1

Case B Case C Case D Case E Case A Sales Revenue Cost of Goods Sold Gross Margin Selling Expense Administrative Expense Pretax Income Income Tax Expense Net Income 970 505 465 115 140 210 830 340 490 150 120 220 45 175 600 250 350 120 115 115 35 80 1210 550 660 360 100 200 80 120 790 360 430 230 80 120 35 85 155

SE A Sales Less :Gross Margin Cost of Goods Sold 1) 970 CASE C Net Income Add: Income Tax Expense Pretax Income CASE D CASE D Gross Margin Add: Cost of goods sold 1) 430 Gross Margin Less: Admin Expense Less: Pretax Income Selling Expense 465 140 210 790 Pretax Income Add: Admin exp Add: Selling exp Gross Margin 115 Gross Margin Less: Selling exp Less: Admin Exp 430 350 3) 210 Pre tax Income Less: Net Income Income Tax Expense 120 Sales Less: Gross Margin Cost of Goods Sold 155 250 E B Sales Less: Cost of Goods Sold Gross Margin 1) 830 Pretax Income Less: Income Tax Exp Net income 490 Gross Margin Less: Selling Expense Less: Pretax Income 490 150 Pretax Income Add: admin exp add: selling exp Gross margin 100 220 45 175 3) Pretax Income Less: Income Tax Expense Net Income 3) Gross Margin Add: Cost of goods sold Sales 550 1210