Question
In: Finance
What is the entry for the current year's taxes on a common-sized income statement?
Category Prior Year Current Year
Accounts payable ??? ???
Accounts receivable 320,715 397,400
Accruals 40,500 33,750
Additional paid in capital 500,000 541,650
Cash 17,500 47,500
Common Stock 94,000 105,000
COGS 328,500 430,741.00
Current portion long-term debt 33,750 35,000
Depreciation expense 54,000 54,943.00
Interest expense 40,500 41,875.00
Inventories 279,000 288,000
Long-term debt 339,876.00 398,606.00
Net fixed assets 946,535 999,000
Notes payable 148,500 162,000
Operating expenses (excl. depr.) 126,000 162,524.00
Retained earnings 306,000 342,000
Sales 639,000 845,964.00
Taxes 24,750 47,204.00
What is the entry for the current year's taxes on a common-sized income statement?
Solutions
Expert Solution
Taxes for current year = 47204
current year sales =845964
Entry for the current year's taxes on a common-sized income statement = Taxes/Sales
Entry for the current year's taxes on a common-sized income statement = 47204/845964 = 0.0558 =5.58%
Answer : 5.58%
jeff jeffy answered 2 years agoRelated Solutions
What would cause changes in income taxes and interest expoense on a common sized income statement?
What would cause changes in income taxes and interest expoense
on a common sized income statement?
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
Common-Sized Income Statement
Revenue and expense data for the current calendar year for
Tannenhill Company and for the electronics industry are as follows.
Tannenhill’s data are expressed in dollars. The electronics
industry averages are expressed in percentages.
Tannenhill
Company
Electronics
Industry
Average
Sales
$1,060,000
100
%
Cost of goods sold
699,600
69
Gross profit
$360,400
31
%
Selling expenses
$212,000
18
%
Administrative expenses
84,800
7
Total operating expenses
$296,800
25
%
Operating income
$63,600
6
%
Other income
21,200...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
Common-Sized Income Statement
Revenue and expense data for the current calendar year for
Tannenhill Company and for the electronics industry are as follows.
Tannenhill’s data are expressed in dollars. The electronics
industry averages are expressed in percentages.
Tannenhill
Company
Electronics
Industry
Average
Sales
$2,240,000
100
%
Cost of goods sold
1,478,400
71
Gross profit
$761,600
29
%
Selling expenses
$448,000
16
%
Administrative expenses
179,200
7
Total operating expenses
$627,200
23
%
Operating income
$134,400
6
%
Other revenue
44,800...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and...
Common-Sized Income Statement
Revenue and expense data for the current calendar year for
Tannenhill Company and for the electronics industry are as follows.
Tannenhill's data are expressed in dollars. The electronics
industry averages are expressed in percentages.
Tannenhill
Company
Electronics
Industry
Average
Sales
$4,000,000
100.0
%
Cost of goods sold
(2,120,000)
(60.0)
Gross profit
$1,880,000
40.0
%
Selling expenses
$(1,080,000)
(24.0)
%
Administrative expenses
(640,000)
(14.0)
Total operating expenses
$(1,720,000)
(38.0)
%
Operating income
$160,000
2.0
%
Other revenue and...
Common-Sized Income Statement Revenue and expense data for the current calendar year for Sorenson Electronics Company...
Common-Sized Income Statement
Revenue and expense data for the current calendar year for
Sorenson Electronics Company and for the electronics industry are
as follows. Sorenson Electronics Company data are expressed in
dollars. The electronics industry averages are expressed in
percentages.
Sorenson
Electronics
Company
Electronics
Industry
Average
Sales
$1,710,000
100
%
Cost of goods sold
(1,162,800)
(71)
Gross profit
$547,200
29
%
Selling expenses
$(307,800)
(12)
%
Administrative expenses
(119,700)
(11)
Total operating expenses
$(427,500)
(23)
%
Operating income
$119,700
6...
how do you prepare a common sized income statement?
how
do you prepare a common sized income statement?
1 - On a common-sized income statement, 100% is the a.net income b.net cost of goods...
1 - On a common-sized income statement, 100% is the
a.net income
b.net cost of goods sold
c.sales
d.gross profit
2- The numerator of the return on total assets is
a.net income plus tax expense
b.net income plus interest expense
c.net income
d.net income minus preferred dividends
3-
The purpose of an audit is to
a.determine whether or not a company is a good investment
b.determine whether or not a company complies with corporate
social responsibility
c.determine whether or not...
A. What can be found by conducting the Vertical Analysis (Common Sized Analysis) of the Income...
A. What can be found by conducting the Vertical Analysis (Common
Sized Analysis) of the Income Statements of a few years?
1. We can find whether the amount of certain expense changes
over time.
2. We can find out whether revenues are growing (or declining)
over time.
3. We can find out whether a certain expense truly
increase/decrease over time.
4. We can find out whether the amount of the Net Profit grows
over time.
B. Which one of the...
Why compare common sized income statements for these firms and what DuPont ratio does this comparison...
Why compare common sized income statements for these firms and
what DuPont ratio does this comparison provide answers for?
What is the current year's return on assets (ROA)?
How to find cash? and calculate total assets? ROA= NI/Total
assetsCategoryPrior yearCurrent yearAccounts payable41,40045,000Accounts receivable115,200122,400Accruals16,20013,500Additional paid in capital200,000216,660Cash??????Common Stock @ par value37,60042,000COGS131,400178,190.00Depreciation expense21,60022,533.00Interest expense16,20016,634.00Inventories111,600115,200Long-term debt135,000138,345.00Net fixed assets377,719.00399,600Notes payable59,40064,800Operating expenses (excl. depr.)50,40060,541.00Retained earnings122,400136,800Sales255,600337,945.00Taxes9,90018,616.00What is the current year's return on assets
(ROA)?Answer Format: Percentage Round to: 2 decimal places
(Example: 9.24%, % sign required. Will accept decimal format
rounded to 4 decimal places (ex: 0.0924))
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Task 3: Research Project (5 marks) You’re investigating a case involving a 2 GB drive that...
- 2. Do you agree with Nietzsche’s claim that “every elevation of the type ‘man’ has hitherto...
- Question: The function predictAnswer should be made based on the following. Your answer must be able...
- A 2.5 mm -diameter sphere is charged to -4.5 nC . An electron fired directly at...
- On June 30, 2017, Wisconsin, Inc., issued $158,250 in debt and 19,400 new shares of its...
- The Ivanhoe Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a...
- Task 1: Investigating Hashing software and the basic usage (total 9 marks) In this task, you...
ADVERTISEMENT