Requirement 1
Computation of Operating Income |
|
Gross profit |
$ 4,11,000.00 |
Less: Operating Expenses |
|
General and administrative expenses |
$ 81,000.00 |
Advertising expenses |
$ 75,000.00 |
Other selling expenses |
$ 43,000.00 |
Total operating expenses |
$ 1,99,000.00 |
Income from operations |
$ 2,12,000.00 |
Requirement 2
Computation of Net Income |
|
Gross profit |
$ 4,11,000.00 |
Less: Operating Expenses |
|
General and administrative expenses |
$ 81,000.00 |
Advertising expenses |
$ 75,000.00 |
Other selling expenses |
$ 43,000.00 |
Total operating expenses |
$ 1,99,000.00 |
Income from operations |
$ 2,12,000.00 |
Others |
|
Interest expense |
$ 61,000.00 |
Income before taxes |
$ 1,51,000.00 |
Income tax expense |
$ 84,000.00 |
Net income |
$ 67,000.00 |
Selected information taken from the financial statements of Verbeke Co. for the year ended December 31,...
Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2019, follows: $414,000 80, 000 106,000 52,000 62,000 746,000 75,000 103,000 81,000 43,000 Gross profit General and administrative expenses Net cash used by investing activities Dividends paid Interest expense Net sales Advertising expense Accounts payable Income tax expense Other selling expenses Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income from operations b. Calculate net income for...
Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2019, follows: Gross profit General and administrative expenses Net cash used by investing activities Dividends paid Interest expense Net sales Advertising expense Accounts payable Income tax expense Other selling expenses $413,000 83,000 105,000 55,000 60,000 740.000 75.000 103,000 84,000 43,000 Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income from operations b. Calculate net income for the...
Selected information taken trom the financial statements of Verbeke Co. for the year ended December 31, 2019, follows: Gross profit General and administrative expenses Net cash used by investing activities Dividends paid Interest expense $412,000 82,000 106,000 54,000 64,000 745,000 76,000 101,000 Net sales Advertising expense Accounts payable Income tax expense Other selling expenses 82,000 40,000 Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income from operations b. Calculate net income for the...
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Selected information taken from the financial statements of Verbeke Co. for the year ended December 31, 2019, follows: Gross profit General and administrative expenses Net cash used by investing activities Dividends paid Interest expense Net sales Advertising expense Accounts payable Income tax expense Other selling expenses $412,000 82,000 105,000 53,000 62,000 740,000 75,000 104,000 85,000 42,000 Required: a. Calculate income from operations (operating income) for the year...
Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2019, follows: Net cash provided by operations Cost of goods sold Selling, general, and administrative expenses Accounts payable Dividends paid Research and development expenses Merchandise inventory Provision for income taxes Net sales Interest expense $ 24,000 104,800 36,000 28,800 50,400 21,600 35,200 13,600 293,600 32,800 Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income from operations b....
Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2019, follows: Net cash provided by operations Cost of goods sold Selling, general, and administrative expenses Accounts payable Dividends paid Research and development expenses Merchandise inventory Provision for income taxes Net sales Interest expense $ 15,000 65,500 22,500 18,000 31,500 13,500 22,000 8,500 183,500 20,500 Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income from operations b....
Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2019, follows: Net cash provided by operations Cost of goods sold Selling, general, and administrative expenses Accounts payable Dividends paid Research and development expenses Merchandise inventory Provision for income taxes Net sales Interest expense $ 33,000 144, 100 49,500 39,600 69,300 29, 700 48,400 18,700 403.700 45, 100 Required: a. Calculate income from operations (operating income) for the year ended December 31, 2019. Income...
The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2016: Net cash provided by financing activities $ 107,000 Dividends paid 19,900 Loss from discontinued operations, net of tax savings of $37,133 111,400 Income tax expense 25,586 Other selling expenses 12,900 Net sales 642,800 Advertising expense 47,200 Accounts receivable 56,400 Cost of goods sold 366,396 General and administrative expenses 143,200 Required: a. Calculate the operating income for Manahan Co. for the year...
The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities Dividends paid Loss from discontinued operations, net of tax savings of $36,600 Income tax expense Other selling expenses Net Sales Advertising expense Accounts receivable Cost of goods sold General and administrative expenses $105,000 20,000 109,800 25, 346 14,200 642,600 47,000 61,880 366,282 142,700 Required: a. Calculate the operating income for Manahan Co. for the year...
Selected accounts from Westeros Co.'s adjusted trial balance for the year ended December 31 follow. Sales Repairs expense Depletion expense $52,000 1,050 5,100 Depreciation expense Salaries expense Amortization expense $10,500 21,000 3,100 Prepare its income statement. FROSCO. WESTEROS CO. Income Statement For Year Ended December 31 Revenes Expenses Total expenses