Question
In: Accounting
the segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ...
the segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2016 Total Company Product A Product B Product C Sales $ 592,000 $ 297,000 $ 118,000 $ 177,000 Variable expenses 273,000 154,000 49,000 70,000 Contribution margin $ 319,000 $ 143,000 $ 69,000 $ 107,000 Fixed expenses 283,000 165,000 47,000 71,000 Operating income $ 36,000 $ (22,000 ) $ 22,000 $ 36,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Total Company Product A Product B Product C Direct fixed expenses $102,000 $74,000 $9,000 $19,000 The remaining fixed expenses are considered to be corporate-wide expenses that have been allocated to each product line based on sales revenue. Required: What will be the effect of the decision to discontinue product A on operating income, assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporate-wide fixed expenses as described, round intermediate calculations to 2 decimal places, Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement.
Solutions
ekkarill92 answered 8 months agoRelated Solutions
The segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ...
The segmented income statement for XYZ Company for the year
ended December 31, 2016, follows: XYZ COMPANY Segmented Income
Statement For the Year Ended December 31, 2016
Total Company Product A Product B Product C
Sales $ 610,000 $ 305,000 $ 118,000 $ 187,000
Vari. expenses 273,000 146,000 53,000 74,000
Cont. margin $ 337,000 $ 159,000 $ 65,000 $ 113,000
Fixed expenses 283,000 164,000 49,000 70,000
Oper. income $ 54,000 $ (5,000 ) $ 16,000 $ 43,000
The company is...
The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows
The income statement for Delta-tec Inc. for the year ended December 31, 2016, was as follows:
Delta-tec Inc.
Income Statement (selected items)
For the Year Ended December 31, 2016
1
Income from operations
$299,700.00
2
Gain on sale of investments
17,800.00
3
Less unrealized loss on trading investments
72,500.00
4
Net income
$245,000.00
The balance sheet dated December 31, 2015, showed a Retained Earnings balance of $825,000. During 2016, the company purchased trading investments for the first time...
Pinnacle Manufacturing Company Income Statement For the Year ended December 31 2016 2015 2014 ...
Pinnacle Manufacturing
Company
Income Statement
For the Year ended December 31
2016
2015
2014
Net sales
$150,737,628
$148,586,037
$144,686,413
Cost of goods sold
109,284,780
106,255,499
101,988,165
Gross profit
41,452,848
42,330,538
42,698,248
Operating expenses
37,177,738
38,133,969
37,241,108
Income from
operations
4,275,110
4,196,569
5,457,140
Other revenues and gains
—
—
—
Other expenses and losses
2,181,948
2,299,217
2,397,953
Income before income tax
2,093,162
1,897,352
3,059,187
Income tax
883,437
858,941
1,341,536
Net income for the year
1,209,725
1,038,411...
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016...
Rembrandt Paint Company had the following income statement items
for the year ended December 31, 2016 ($ in 000s):
Net sales
$
34,000
Cost of goods
sold
$
18,500
Interest income
360
Selling and
administrative expenses
4,100
Interest
expense
670
Restructuring
costs
2,400
In addition, during the year
the company completed the disposal of its plastics business and
incurred a loss from operations of $3.2 million and a gain on
disposal of the component’s assets of $5.2 million. 600,000 shares...
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016...
Rembrandt Paint
Company had the following income statement items for the year ended
December 31, 2016 ($ in 000s):
Net
sales
$
20,000
Cost
of goods sold
$
11,500
Interest income
220
Selling and administrative expenses
2,700
Interest expense
390
Restructuring costs
1,000
In addition, during the year
the company completed the disposal of its plastics business and
incurred a loss from operations of $1.8 million and a gain on
disposal of the component’s assets of $2.4 million. 600,000 shares...
Rembrandt Paint Company had the following income statement items for the year ended December 31, 2016...
Rembrandt Paint
Company had the following income statement items for the year ended
December 31, 2016 ($ in 000s):
Net
sales
$
20,000
Cost
of goods sold
$
11,500
Interest income
220
Selling and administrative expenses
2,700
Interest expense
390
Restructuring costs
1,000
In addition, during the year
the company completed the disposal of its plastics business and
incurred a loss from operations of $1.8 million and a gain on
disposal of the component’s assets of $2.4 million. 600,000 shares...
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX
Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation: Maris CorporationIncome StatementYear Ended December 31, 20XX Sales$3,800,000 Cost of goods sold2,250,000 Gross profits1,550,000 Selling and administrative expense540,000 Amortization expense200,000 Operating income810,000 Interest expense43,000 Earnings before taxes767,000 Taxes440,000 Earnings after taxes327,000 Preferred stock dividends30,000 Earnings available to common shareholders$297,000 Shares outstanding198,000 Earnings per share$1.50 Statement of...
Income statement data for Winthrop Company for two recent years ended December 31 are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31 are as follows: 1 Current Year Previous Year 2
Sales $1,938,000.00 $1,700,000.00 3 Cost of goods sold 1,608,200.00
1,462,000.00 4 Gross profit $329,800.00 $238,000.00 5 Selling
expenses $67,800.00 $60,000.00 6 Administrative expenses 49,280.00
44,000.00 7 Total operating expenses $117,080.00 $104,000.00 8
Income before income tax $212,720.00 $134,000.00 9 Income tax
expense 13,090.00 8,500.00 10 Net income $199,630.00 $125,500.00 A.
Prepare a comparative income statement with horizontal analysis,...
Income statement data for Winthrop Company for two recent years ended December 31, are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$799,100
$610,000
Cost of goods sold
665,600
520,000
Gross profit
$133,500
$90,000
Selling expenses
$39,930
$33,000
Administrative expenses
36,120
28,000
Total operating expenses
$76,050
$61,000
Income before income tax
$57,450
$29,000
Income tax expenses
23,000
11,600
Net income
$34,450
$17,400
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
Income statement data for Winthrop Company for two recent years ended December 31, are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$372,000
$310,000
Cost of goods sold
318,600
270,000
Gross profit
$53,400
$40,000
Selling expenses
$14,300
$13,000
Administrative expenses
12,980
11,000
Total operating expenses
$27,280
$24,000
Income before income tax
$26,120
$16,000
Income tax expenses
10,400
6,400
Net income
$15,720
$9,600
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
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