Alpaca Corporation had revenues of $290,000 in its first year of
operations. The company has not collected on $19,200 of its sales
and still owes $25,000 on $100,000 of merchandise it purchased. The
company had no inventory on hand at the end of the year. The
company paid $10,000 in salaries. Owners invested $14,000 in the
business and $14,000 was borrowed on a five-year note. The company
paid $2,900 in interest that was the amount owed for the year, and
paid $7,400 for a two-year insurance policy on the first day of
business. Alpaca has an effective income tax rate of 30%.
Compute net income for the first year for Alpaca Corporation.
Revenues | $ 2,90,000.00 | |||
Less: | Cost of goods sold | $ 1,00,000.00 | ||
Gross Margin | $ 1,90,000.00 | |||
Less: | Expenses: | |||
Salaries Expense | $ 10,000.00 | |||
Insurance Expense | $ 3,700.00 | |||
Interest Expense | $ 2,900.00 | |||
Total expenses | $ 16,600.00 | |||
Income before tax | $ 1,73,400.00 | |||
Less: | Income tax @ 30% | $ 52,020.00 | ||
Net Income | $ 1,21,380.00 |
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Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not...
Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collected on $19,200 of its sales and still owes $25,300 on $80,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $12,000 in salaries. Owners invested $20,000 in the business and $20,000 was borrowed on a five-year note. The company paid $3,700 in interest that was the amount owed for the year, and...
Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collected on $19,200 of its sales and still owes $25,300 on $80,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $12,000 in salaries. Owners invested $20,000 in the business and $20,000 was borrowed on a five-year note. The company paid $3,700 in interest that was the amount owed for the year, and...
Alpaca Corporation had revenues of $290,000 in its first year of operations. The company has not collected on $19,000 of its sales and still owes $25,600 on $70,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $10,500 in salaries. Owners invested $16,000 in the business and $16,000 was borrowed on a five-year note. The company paid $2,500 in interest 8 0136a3 that was the amount owed for the...
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