Question

Please make it clear

mostiy migrant lapor t guietciean inc. is an orrice buiaing nousekeeping contractor tnat empioys o ciean small office buildings. Most of the work is second shift after the office workers of the firm's clients have gone home for the day. Generally the professional housekeeper(s) arrive driving a van that also has the material and equipment for cleaning at 5:00 and spend the next seven hours emptying waste baskets, vacuuming, cleaning the lavatories, mopping the floors, sponging off desks, etc. The following is some financial information regarding the business: Revenue Depreciation Selling Expense Rent for the Headquarters Liability Insurance Cleaning Staff Wages 160,000 60,000 2,400,000 6,000,000 360,000 300,000 Fuel, Tires etc. for the Van 129,600 Interest Expense Vacuum bags, sponges and 100,000 Heating and Electricity Chemical Cleaning Agents Staff and Admin Salaries 160,000 other short-lived supplies 600,000 Profit taxes 600,000 Assets 300,000 300,000 1,800,000 Note: On the exam this would be a question to be answered in Hard Copy. Question 33 (1 point) The cost of goods for this firm is,

Answer 1

33	Calculation of Cost of Goolds
	Fuel,tires etc for the van	100000
	Chemical Cleaning Agents	600000
	Cleaning Staff wages	2400000
	Vacuum bags,Sponges and Other short-lived Supplies	300000
	Cost of Goods	3400000
34	Gross Profit
	Revenue	$ 6,000,000.00
	Cost of Goods	$ 3,400,000.00
	Gross Profit	$ 2,600,000.00
35	Gross Profit Margin	43%
36	SG&A
	Selling Expense	$      300,000.00
	Staff and admin Salaries	$      600,000.00
	Rent for the Headquarters	$      160,000.00
	Heating and Electricity	$      160,000.00
	Liability Insurance	$        60,000.00
	Depreciation	$      360,000.00
	Total	$ 1,640,000.00
37	Operating Profit
	Gross Profit	$ 2,600,000.00
	SG&A	$ 1,640,000.00
	Operating Profit	$      960,000.00
38	Operating Profit Margin	16%
39	Non -Operating Expenses
	Interest Expense	$      129,600.00
	Taxes	$      300,000.00
	Total Non -Operating Expenses	$      429,600.00
40	Net Profit
	Operating Profit	$      960,000.00
	Total Non -Operating Expenses	$      429,600.00
	Net Profit	$      530,400.00
41	Net Profit Margin	9%
42	Total Asset Turnover
	Revenue/Assets	3.33 Times
43	Return On assets
	Net income/Assets	29%