REVENUES: Net sales &
REVENUES:
Net sales $7,800,000
EXPENSES:
Cost of Product Sold $1,150,000
Salaries of key employees $200,000
Salaries of other employees $230,000
Utilities $100,000
Interest Payments $55,000
Advertising $20,000
Other Expenses $950,000
Total Expenses $ 2,705,000
INCOME BEFORE TAXES $ 5,095,000
LESS TAXES (25%) $ 1,273,750
NET INCOME $ 3,821,250
Mann Engineering is a 3rd party performance car parts manufacturer. Historically sales during the spring months from March to May account for 55% of annual revenue while the remaining 45% of annual revenue spreads out evenly for the rest of the nine months. Assume cost of product sold is proportional to sales volume while all other expenses are evenly distributed across 12 months throughout the year. The company estimated that the maximum probable length of a shutdown is six months. During this time Mann Engineering has to continue to pay its utilities, interest payments, and all of its employees due to the fact that they are all highly trained employees that would be very hard to replace. What is the maximum probable business income loss for Mann Engineering? (5 points)
Homework Answers
Suppose Ruston Company has the following revenue and expenses for 2018: Revenues of $7,800,000 Cost of Goods Sold of $1,...
Suppose Ruston Company has the following revenue and expenses for 2018: Revenues of $7,800,000 Cost of Goods Sold of $1,560,000 Depreciation Expenses of $700,000 Income Taxes of $1,676,000 Interest Expenses of $70,000 Other Expenses of $500,000 Sales, General, & Administrative Expenses of $780,000 Use an income statement with amounts in thousands A) What is the value of Pre-Tax Income? and B) What is the value of Net Income? Please specify your answer in the same units as the income statement.
Problem 1 Consider the following Green Valley Nursing Home Income Statement Revenue: Net patient service revenues...
Problem 1 Consider the following Green Valley Nursing Home Income Statement Revenue: Net patient service revenues Other income $2,862,000 106,146 $2,968,146 Total Revenues Expenses Salaries and benefits Medical supplies and drugs $ Insurance and other Provision for bad debt Depreciation Interest $1,132,000 966,781 296,357 110,000 85,000 206,780 S2,796,918 Total Expenses Operating income Provision for income taxes 171,228 31,167 NET INCOME 140,061 3.3(b) Why does Green Valley show a provision for income taxes while BestCare HMO does not? 3.2(c) What is...
The drop-down options are: Sales Revenue Cost of Goods Sold Net Income / (Loss) Gross Profit...
The drop-down options are:
Sales Revenue
Cost of Goods Sold
Net Income / (Loss)
Gross Profit on Sales
Total Expenses
Income from Operations
Other Revenue and Gains
Income Before Income Taxes
Pharoah Floors has year-end account balances of Sales Revenue $687,000, Interest Revenue $2,200, Cost of Goods Sold $416,000, Salaries and Wages Expense $96,900, Administrative Expense $67,250, and Income Tax Expense $42,200. Prepare a multiple-step Question 26 of 27 0.7/1 < $ < v $ $
CRANE COMPANY Income Statement For the Year Ended December 31, 2017 Sales Sales Revenue 2,290,000 Less...
CRANE COMPANY Income Statement For the Year Ended December 31, 2017 Sales Sales Revenue 2,290,000 Less +: Sales Discounts 170,000 Net Sales 2,120,000 Cost of Goods Sold 1,038,800 Gross Profit 1,081,200 Operating Expenses 460,000 i Salaries and Wages Expense 320,000 i Depreciation Expense 120,000 i Utilities Expense Total Operating Expenses 900,000 Income From Operations 181,200 Other Revenues and Gains Interest Revenue 57,900 Other Expenses and Losses Interest Expense 67,000 83,500 i Loss on Disposal of Plant Assets 150,500 88,600 Income...
Bramble Corporation had net sales revenue of $5,840,000 and investment revenue of $224,000 for the year...
Bramble Corporation had net sales revenue of $5,840,000 and investment revenue of $224,000 for the year ended December 31, 2020. Other items pertaining to 2020 were as follows: Cost of goods sold Salaries and wages expense (sales) Advertising expense Entertainment expense Selling expenses $4,610,000 379,000 126,000 76,000 581,000 Salaries and wages expense (administrative) Rent expense Utilities expense Administrative expenses 293,000 106,000 45,000 444,000 Increase in value of company reputation Unrealized gain on value of patents Interest expense Income tax expense...
Carlberg Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are...
Carlberg Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow. CARLBERG...
2018 Income Statement Revenues: Gross sales: &
2018 Income Statement Revenues: Gross sales: $2,700,000 Dividends: $10,000 Bank account interest: $350 Interest on U.S. Treasury Bonds: $420 Santa Clara County, CA bond interest: $180 Cost of Goods Sold Inventory as of 1/1/18 of $100,000 Inventory purchased during 2018: $283,487 Inventory as of 12/31/18 of $220,000 [Note: All inventory figures are valued based on original cost and using the specific identification method (i.e., neither FIFO nor LIFO); IRC Sect. 263A (UNICAP) does not apply to the corporation; there were no changes in the method of valuing...
E1-6 L01- Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the...
E1-6 L01- Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information: a. Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situation) of $2,500. b. With the help of a friend (who majored in accounting), you determine that all of the goods...
E1-6 Analyzing Revenues and Expenses and Preparing an Income Statement 01- Assume that you are the...
E1-6 Analyzing Revenues and Expenses and Preparing an Income Statement 01- Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information a. Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situation) of $2,500 b. With the help of a friend (who majored in accounting), you determine that all of the goods...
During August, Hill Sales Company had these summary transactions: 1. Cash sales of $220,000, subject to...
During August, Hill Sales Company had these summary transactions: 1. Cash sales of $220,000, subject to sales taxes of 6%. 2. Sales on account of $270,000, subject to sales taxes of 6%. 3. Paid the sales taxes to the state. Required: Prepare journal entries to record the preceding transactions. CHART OF ACCOUNTS Hill Sales Company General Ledger ASSETS REVENUE 111 Cash 411 Sales 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511...
Problem 1 Consider the following Green Valley Nursing Home Income Statement Revenue: Net patient service revenues Other income $2,862,000 106,146 $2,968,146 Total Revenues Expenses Salaries and benefits Medical supplies and drugs $ Insurance and other Provision for bad debt Depreciation Interest $1,132,000 966,781 296,357 110,000 85,000 206,780 S2,796,918 Total Expenses Operating income Provision for income taxes 171,228 31,167 NET INCOME 140,061 3.3(b) Why does Green Valley show a provision for income taxes while BestCare HMO does not? 3.2(c) What is...
The drop-down options are:
Sales Revenue
Cost of Goods Sold
Net Income / (Loss)
Gross Profit on Sales
Total Expenses
Income from Operations
Other Revenue and Gains
Income Before Income Taxes
Pharoah Floors has year-end account balances of Sales Revenue $687,000, Interest Revenue $2,200, Cost of Goods Sold $416,000, Salaries and Wages Expense $96,900, Administrative Expense $67,250, and Income Tax Expense $42,200. Prepare a multiple-step Question 26 of 27 0.7/1 < $ < v $ $
CRANE COMPANY Income Statement For the Year Ended December 31, 2017 Sales Sales Revenue 2,290,000 Less +: Sales Discounts 170,000 Net Sales 2,120,000 Cost of Goods Sold 1,038,800 Gross Profit 1,081,200 Operating Expenses 460,000 i Salaries and Wages Expense 320,000 i Depreciation Expense 120,000 i Utilities Expense Total Operating Expenses 900,000 Income From Operations 181,200 Other Revenues and Gains Interest Revenue 57,900 Other Expenses and Losses Interest Expense 67,000 83,500 i Loss on Disposal of Plant Assets 150,500 88,600 Income...
Bramble Corporation had net sales revenue of $5,840,000 and investment revenue of $224,000 for the year ended December 31, 2020. Other items pertaining to 2020 were as follows: Cost of goods sold Salaries and wages expense (sales) Advertising expense Entertainment expense Selling expenses $4,610,000 379,000 126,000 76,000 581,000 Salaries and wages expense (administrative) Rent expense Utilities expense Administrative expenses 293,000 106,000 45,000 444,000 Increase in value of company reputation Unrealized gain on value of patents Interest expense Income tax expense...
E1-6 L01- Analyzing Revenues and Expenses and Preparing an Income Statement Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information: a. Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situation) of $2,500. b. With the help of a friend (who majored in accounting), you determine that all of the goods...
E1-6 Analyzing Revenues and Expenses and Preparing an Income Statement 01- Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of the current year, you find (for January only) this information a. Sales, per the cash register tapes, of $150,000, plus one sale on credit (a special situation) of $2,500 b. With the help of a friend (who majored in accounting), you determine that all of the goods...
During August, Hill Sales Company had these summary transactions: 1. Cash sales of $220,000, subject to sales taxes of 6%. 2. Sales on account of $270,000, subject to sales taxes of 6%. 3. Paid the sales taxes to the state. Required: Prepare journal entries to record the preceding transactions. CHART OF ACCOUNTS Hill Sales Company General Ledger ASSETS REVENUE 111 Cash 411 Sales 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511...
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