Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows:
Dropping Unprofitable Department
Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows:
| Total | Departments 1-3 | Department 4 | ||
|---|---|---|---|---|
| Sales | $962,000 | $810,000 | $152,000 | |
| Cost of sales | 640,500 | 526,500 | 114,000 | |
| Gross profit | $321,500 | $283,500 | $38,000 | |
| Direct expenses | $144,000 | $120,000 | $24,000 | |
| Common expenses | 127,000 | 106,000 | 21,000 | |
| Total expenses | $271,000 | $226,000 | $45,000 | |
| Net income (Loss) | $50,500 | $57,500 | $(7,000) |
Required
a. Calculate the gross profit percentage for departments 1-3 combined and for department 4.
Department 1-3
% %
Department 4
b. What effect would elimination of department 4 have had on total firm net income? (Ignore the effect of income tax.)
The firm's net income would be: $
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Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows:
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,000,000 $900,000 $100,000 Cost of sales 631,000 558,000 73,000 Gross profit 369,000 342,000 27,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 107,000 96,000 11,000 Total expenses 251,000 216,000 35,000 Net income (Loss) $118,000 $126,000 $(8,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,950,000 $1,550,000 $400,000 Rectangular Snip Cost of sales 328,000 1,413,000 1,085,000 Gross profit 537,000 465,000 72,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 205,000 145,000 60,000 Total expenses 84,000 349,000 265,000 $188,000 $200,000 $(12,000) Net income (Loss) Required a. Calculate the gross profit percentage for departments 1-3 combined and...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,550,000 $1,250,000 $300.000 234,000 66,000 Cost of sales 1,109,000 875,000 Gross profit Direct expenses 441,000 375,000 $120,000 $144,000 $24,000 Common expenses 183,000 134,000 49,000 Total expenses 327,000 254.000 73,000 Net income (Loss) $114.000 $121,000 S17,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $2,100,000 $1,650,000 $450,000 Cost of sales 1,326,000 1,006,500 319,500 Gross profit 774,000 643,500 130,500 Direct expenses $144,000 $120,000 $24,000 Common expenses 316,000 200,500 115,500 Total expenses 460,000 320,500 139,500 Net income (LOSS) $314,000 $323,000 $(9,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Question 2 Answer saved Marked out of 2.00p Flag question Dropping Unprofitable Department Thomas Corporation has...
Question 2 Answer saved Marked out of 2.00p Flag question Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,000,000 $900,000 $100,000 Cost of sales 631,000 558,000 73,000 Gross profit 369,000 342,000 27,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 107,000 96,000 11,000 Total expenses 251,000 216,000 35,000 Net income (Loss) $118,000 $126,000 $(8,000) Required a. Calculate the...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2019 Sales revenue Cost of goods...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2019 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $749,000 468,125 118,342 56,924 38,199 67,410 $605,000 393,250 70,180 53,240 26,015 62,315 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. 48.5%.) JOSHUA CORPORATION Condensed Income Statements For the Years Ended December 31 2020 2019 Percent Amount Pe Percent Amount Sales revenue $749,000 $605,000...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2019 Sales revenue Cost of goods...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2019 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $749,000 467,376 118,342 58,422 29,211 75,649 $603,000 390,744 69,948 59,094 26,532 56,682 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decima 13333 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. JOSHUA CORPORATION Condensed Income Statements For...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue Cost of...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income $749,000 467,376 118,342 58,422 29,211 75,649 $603,000 390,744 69,948 59,094 26,532 56,682 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. 48.5%.) JOSHUA CORPORATION Condensed Income Statements For the Years Ended December 31 2020 Amount Percent Amount 2019 Percent Sales revenue $749,000 $603,000 Cost...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,950,000 $1,550,000 $400,000 Rectangular Snip Cost of sales 328,000 1,413,000 1,085,000 Gross profit 537,000 465,000 72,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 205,000 145,000 60,000 Total expenses 84,000 349,000 265,000 $188,000 $200,000 $(12,000) Net income (Loss) Required a. Calculate the gross profit percentage for departments 1-3 combined and...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,550,000 $1,250,000 $300.000 234,000 66,000 Cost of sales 1,109,000 875,000 Gross profit Direct expenses 441,000 375,000 $120,000 $144,000 $24,000 Common expenses 183,000 134,000 49,000 Total expenses 327,000 254.000 73,000 Net income (Loss) $114.000 $121,000 S17,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $2,100,000 $1,650,000 $450,000 Cost of sales 1,326,000 1,006,500 319,500 Gross profit 774,000 643,500 130,500 Direct expenses $144,000 $120,000 $24,000 Common expenses 316,000 200,500 115,500 Total expenses 460,000 320,500 139,500 Net income (LOSS) $314,000 $323,000 $(9,000) Required a. Calculate the gross profit percentage for departments 1-3 combined and for department...
Question 2 Answer saved Marked out of 2.00p Flag question Dropping Unprofitable Department Thomas Corporation has four departments, all of which appear to be profitable except department 4. Operating data for 2019 are as follows: Total Departments 1-3 Department 4 Sales $1,000,000 $900,000 $100,000 Cost of sales 631,000 558,000 73,000 Gross profit 369,000 342,000 27,000 Direct expenses $144,000 $120,000 $24,000 Common expenses 107,000 96,000 11,000 Total expenses 251,000 216,000 35,000 Net income (Loss) $118,000 $126,000 $(8,000) Required a. Calculate the...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2019 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $749,000 468,125 118,342 56,924 38,199 67,410 $605,000 393,250 70,180 53,240 26,015 62,315 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. 48.5%.) JOSHUA CORPORATION Condensed Income Statements For the Years Ended December 31 2020 2019 Percent Amount Pe Percent Amount Sales revenue $749,000 $605,000...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2019 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2020 $749,000 467,376 118,342 58,422 29,211 75,649 $603,000 390,744 69,948 59,094 26,532 56,682 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decima 13333 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. JOSHUA CORPORATION Condensed Income Statements For...
Exercise 14-4 Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income $749,000 467,376 118,342 58,422 29,211 75,649 $603,000 390,744 69,948 59,094 26,532 56,682 Prepare a schedule showing a vertical analysis for 2020 and 2019. (Round answers to 1 decimal place, e.g. 48.5%.) JOSHUA CORPORATION Condensed Income Statements For the Years Ended December 31 2020 Amount Percent Amount 2019 Percent Sales revenue $749,000 $603,000 Cost...
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