At the end of its third year of operations, the NusaManufacturing Company had $4,650,000 in...

At the end of its third year of operations, the Nusa Manufacturing Company had $4,650,000 in revenue (sales); $3,500,000 in cost of goods sold; $475,000 in total operating expenses; $70,000 in interest expense and had a tax liability equal to 30% of the firm’s taxable income. Construct an income statement for the year and find the net profit?

Expert Solution

The income statement is presented as follows:

INCOME STATEMENT
Sales	$ 4,650,000
Cost of goods sold	$ 3,500,000
Gross Profit	1,150,000
Total operating expenses	$ 475,000
EBIT	$ 675,000
Interest expense	$ 70,000
EBT	$ 605,000
Tax expense	$ 181,500
Net Profit	$ 423,500

jeff jeffy answered 2 years ago

At the end of its third year of operations, the Nusa Manufacturing Company had $4,650,000 in...

At the end of its third year of operations, the Nusa Manufacturing Company had $4,650,000 in revenue (sales); $3,500,000 in cost of goods sold; $475,000 in total operating expenses; $70,000 in interest expense and had a tax liability equal to 30% of the firm’s taxable income. Construct an income statement for the year and find the net profit?

At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,500,000 in...

At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,500,000 in revenues, $3,375,000 in cost of goods sold, $450,000 in operating expenses which included depreciation expense of $150,000, and a tax liability equal to 35 percent of the firm's taxable income. What is the net income of the firm for the year? Complete the income statement for Sandifer Manufacturing Co.: (Round to the nearest dollar.) Revenues = $ Less: Cost of Goods Sold = $...

At the end of the first year of operations, Key Company had a current equity securities...

At the end of the first year of operations, Key Company had a current equity securities portfolio classified as available‐for‐sale securities with a cost of $500,000 and a fair value of $550,000. At the end of its second year of operations, Key had a current equity securities portfolio classified as available‐for‐sale securities with a cost of $525,000 and a fair value of $475,000. No securities were sold during the first year. One security with a cost of $80,000 and a...

At the end of its first year of operations on December 31, 2018, the Hondo Company...

At the end of its first year of operations on December 31, 2018, the Hondo Company reported the following information for the year: (Assume any deferred tax assets are more likely than not to be realized). Pretax income for financial reporting purposes $360,000 Municipal bond interest revenue on State of Texas bonds 12,000 Warranty expense for financial reporting purposes Warranty repair costs during period 30,000 10,000 Excess of MACRS Depreciation for tax purposes above straight line for financial reporting purposes...

At the end of its first year of operations on December 31, 2018, the Skyway Company...

At the end of its first year of operations on December 31, 2018, the Skyway Company reported taxable income of $30,000 and a pretax financial loss of $40,000. Differences between taxable income and pretax financial income included:Environmental fine from the EPA = $20,000Warranty costs expensed for accounting purposes in excess of cash paid for warranty costs = $50,000(Those warranty costs are expected to be paid in 2019.) The enacted tax rates for 2018 and 2019 are 30% and 34%, respectively.REQUIRED:(a)...

1. A company had the following purchases during its first year of operations:

1. A company had the following purchases during its first year of operations:PurchasesJanuary:11 units at $121February:21 units at $131May:16 units at $141September:13 units at $151November:11 units at $161On December 31, there were 31 units remaining in ending inventory. These 31 units consisted of 3 from January, 5 from February, 7 from May, 5 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory?2. During the first week of January, an employee...

Alpaca Corporation had revenues of $220,000 in its first year of operations. The company has not...

Alpaca Corporation had revenues of $220,000 in its first year of operations. The company has not collected on $19,100 of its sales and still owes $26,800 on $90,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $11,000 in salaries. Owners invested $23,000 in the business and $23,000 was borrowed on a five-year note. The company paid $3,400 in interest that was the amount owed for the year, and...

Alpaca Corporation had revenues of $315,000 in its first year of operations. The company has not...

Alpaca Corporation had revenues of $315,000 in its first year of operations. The company has not collected on $20,200 of its sales and still owes $28,300 on $97,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,000 in salaries. Owners invested $20,500 in the business and $20,500 was borrowed on a five-year note. The company paid $4,900 in interest that was the amount owed for the year, and...

Alpaca Corporation had revenues of $275,000 in its first year of operations. The company has not...

Alpaca Corporation had revenues of $275,000 in its first year of operations. The company has not collected on $19,400 of its sales and still owes $27,500 on $98,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,200 in salaries. Owners invested $16,500 in the business and $16,500 was borrowed on a five-year note. The company paid $4,200 in interest that was the amount owed for the year, and...

A company had the following purchases and sales during its first year of operations: Purchases Sales...

A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6 units February: 20 units at $125 5 units May: 15 units at $130 9 units September: 12 units at $135 8 units November: 10 units at $140 13 units On December 31, there were 26 units remaining in ending inventory. Using the Perpetual FIFO inventory valuation method, what is the cost of the ending inventory? (Assume all sales...

Question