Question
In: Accounting
Sales $ 7,400,000 $ 5,624,000 Cost of goods sold 4,720,000 3,508,500 Gross margin 2,680,000 2,115,500 Selling...
| Sales | $ | 7,400,000 | $ | 5,624,000 | ||
| Cost of goods sold | 4,720,000 | 3,508,500 | ||||
| Gross margin | 2,680,000 | 2,115,500 | ||||
| Selling and administrative expenses: | ||||||
| Selling expenses | 1,372,000 | 1,082,000 | ||||
| Administrative expenses | 710,500 | 608,500 | ||||
| Total expenses | 2,082,500 | 1,690,500 | ||||
| Net operating income | 597,500 | 425,000 | ||||
| Interest expense | 105,000 | 93,000 | ||||
| Net income before taxes | $ | 492,500 | $ | 332,000 | ||
Members of the company’s board of directors are surprised to see that net income increased by only $160,500 when sales increased by $1,776,000.
Required:
1. Express each year's income statement in common-size percentages.
Solutions
ekkarill92 answered 3 years agoRelated Solutions
STORE 5 NET SALES = ? COST OF GOODS SOLD = $90.0 GROSS MARGIN-DOLLARS = ?...
STORE 5
NET SALES = ?
COST OF GOODS SOLD = $90.0
GROSS MARGIN-DOLLARS = ?
GROSS MARGIN-PERCENT = ?
EXPENSE-DOLLARS = $41.1
EXPENSE-PERCENT = ?
NET INCOME-DOLLARS = $0.5
NET INCOME-PERCENT = ?
Determine the effect on the cost of goods sold, total assets, and gross margin for 2013...
Determine the effect on the cost of goods sold, total assets,
and gross margin for 2013 and 2014 if the following inventory
errors are not corrected. Indicate your answer with (+) for
overstated, (-) for understated, and (0) for no effect.
a. Beginning inventory for 2013 is understated b.
Ending inventory for 2013 is overstated
Effect in 2013 on
Cost of Goods Sold ｜Total Assets｜ Gross
Margin
a.
b.
Effect in 2014 on
Cost of Goods Sold ｜Total Assets ｜Gross
Margin...
INCOME STATEMENT: 2016 2017 Sales $100,000.00 $120,300.00 Cost of Goods Sold $60,000.00 $72,180.00 Gross Margin $40,000.00...
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00
$48,120.00
Depreciation
$16,000.00
$19,200.00
Administrative Costs
$9,000.00
$10,800.00
EBIT
$15,000.00
$18,120.00
Interest
$4,000.00
$4,000.00
Pre-tax income
$11,000.00
$14,120.00
Taxes
$4,400.00
$5,648.00
Net Income
$6,600.00
$8,472.00
Dividends
$0.00
$5,083.20
Addition to Retained Earnings
$6,600.00
$3,388.80
BALANCE SHEET AS OF 12/31/2017:
ASSETS
2016
2017
Cash
$5,000.00
$6,000.00
Inventory
$15,000.00
$18,000.00
Accounts Receivable
$15,000.00
$18,045.00
Current Assets
$35,000.00
$42,045.00
Net PPE
$80,000.00
$92,000.00
Total Assets (TA)
$115,000.00...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000
Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000
Net income $ 11,000 $ 32,000 a. Prepare common size income
statements for Price Company, a sole proprietorship, for the two
years shown as above by converting the dollar amounts into
percentages. For each year, sales will appear as 100 percent and
other items will be expressed as a percentage of sales. (Income
taxes are not involved as the...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000
Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000
Net income $ 11,000 $ 32,000 a. Prepare common size income
statements for Price Company, a sole proprietorship, for the two
years shown as above by converting the dollar amounts into
percentages. For each year, sales will appear as 100 percent and
other items will be expressed as a percentage of sales. (Income
taxes are not involved as the...
Accessories department reported the following: Cost of Goods Sold.. $245,000 Gross Margin.. 46% Net Profit.. 3%...
Accessories department reported the following: Cost of Goods
Sold.. $245,000 Gross Margin.. 46% Net Profit.. 3% What is the “$
Net Sales” and “$ Operating Expenses”?
A. $453,704 Net Sales; $195,093 Operating Expenses
B. $36,296 Net Sales; $208,704 Operating Expenses
C. $403,797 Net Sales; $208,704 Operating Expenses
D. $13,611 Net Sales; $195,093 Operating Expenses
Calculating Gross Profit Margin and Inventory Turnover The following table presents sales revenue, cost of goods...
Calculating
Gross Profit Margin and Inventory Turnover
The following table presents sales revenue, cost of goods sold, and
inventory amounts for three retailers of fine jewelry, Tiffany
& Co., Zale Corporation, and Blue Nile, Inc. (an Internet
retailer).
($ millions)
2013
2012
Tiffany & Co.
Revenues
$4,585
$4,017
Cost of goods sold
1,776
1,674
Inventory
2,489
2,347
Zale Corporation
Revenues
$1,973
$1,910
Cost of goods sold
989
949
Inventory
823
769
Blue Nile, Inc.
Revenues
$505
$443
Cost of goods...
Calculating Gross Profit Margin and Inventory Turnover The following table presents sales revenue, cost of goods...
Calculating Gross Profit Margin and Inventory Turnover
The following table presents sales revenue, cost of goods sold, and
inventory amounts for three retailers of fine jewelry, Tiffany
& Co., Zale Corporation, and Blue Nile, Inc. (an Internet
retailer).
($ millions)
2013
2012
Tiffany & Co.
Revenues
$4,231
$3,974
Cost of goods sold
1,766
1,664
Inventory
2,477
2,335
Zale Corporation
Revenues
$1,963
$1,900
Cost of goods sold
979
939
Inventory
813
759
Blue Nile, Inc.
Revenues
$495
$433
Cost of goods...
Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Exercise 6-4A Calculate inventory amounts when costs are rising
(LO6-3)During the year, TRC Corporation has the following inventory
transactions.DateTransactionNumber of UnitsUnit CostTotal CostJan.1Beginning inventory52$44$2,288Apr.7Purchase132466,072Jul.16Purchase202499,898Oct.6Purchase112505,600498$23,858For the entire year, the company sells 432 units of inventory
for $62 each.Exercise 6-4A Part 22. Using LIFO, calculate ending inventory, cost
of goods sold, sales revenue, and gross profit.
A-Rod Fishing Supplies had sales of $2,680,000 and cost of goods sold of $2,080,000. Selling and...
A-Rod Fishing Supplies had sales of $2,680,000 and cost of goods
sold of $2,080,000. Selling and administrative expenses represented
10 percent of sales. Depreciation was 5 percent of the total assets
of $4,530,000.
What is the firms operating profit?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Two cannons are mounted as shown in the drawing and rigged to fire simultaneously. They are...
- What is the potential of a cell made up of Zn|Zn2+ and Cu|Cu2+ half-cells at 25o...
- Write a Java Program using the following instruction: Create the following 3 methods that calculate and...
- How would the S/D curves shift if a $3 tax was imposed on suppliers for each...
- Why should a time-based authentication system invalidate the current password on a successful authentication?
- Explain the difference between a market penetration strategy and a market development strategy.
- QUESTION 4 Discuss the sanctity of life versus the quality of life debate as presented by...
ADVERTISEMENT