Question

In: Accounting

The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017....

The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017. Fortunately the controller had kept certain statistical data related to the income statement as presented below. 1. The beginning merchandise inventory was $184,000 and decreased 20% during the current year. 2. Sales discounts amount to $34,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $40,000. 5. The income tax rate is 30%. 6. Cost of goods sold amounts to $1,000,000. 7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales. 8. Four-fifths of the operating expenses relate to sales activities. Operating expenses consist of selling and administrative expenses. Instructions From the foregoing information, prepare an income statement for the year 2017 in single step form.

Solutions

Expert Solution

Here,all calculations are done based given Statement


Related Solutions

The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017....
The financial records of Leon Paul Inc. were destroyed by fire at the end of 2017. Fortunately the controller had kept certain statistical data related to the income statement as presented below. 1. The beginning merchandise inventory was $184,000 and decreased 20% during the current year. 2. Sales discounts amount to $34,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $40,000. 5. The income tax rate is 30%. 6. Cost of goods...
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2017....
The financial records of LeRoi Jones Inc. were destroyed by fire at the end of 2017. Fortunately, the controller had kept certain statistical data related to the income statement as follows. 1. The beginning merchandise inventory was $92,000 and decreased 20% during the current year. 2. Sales discounts amount to $17,000. 3. 20,000 shares of common stock were outstanding for the entire year. 4. Interest expense was $20,000. 5. The income tax rate is 30%. 6. Cost of goods sold...
The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately,...
The financial records of Manchester Corporation were destroyed by fire at the end of 2017. Fortunately, the controller had kept the following statistical data related to the income statement and the balance sheet in addition to the published balance sheet of the year 2017: The beginning merchandise inventory was $92,000 and decreased 20% during the current year. Sales discounts amount to $17,000. Interest expense was $20,000. The income tax is $106,000. Cost of goods sold amounts to $500,000. Administrative expenses...
A fire has destroyed a large percentage of the financial records of the Inferno Company. You...
A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 15.3 percent. Sales were $1,760,000, the total debt ratio was .35, and total debt was $653,000. What is the return on assets (ROA)? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,...
A fire has destroyed a large percentage of the financial records of the Excandesco Company. You...
A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.7 percent. Sales were $1,795,000, the total debt ratio was .33, and total debt was $660,000. What are the total assets? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Total assets            $ What...
Jack's business premises were destroyed in a fire and all his records were lost apart from...
Jack's business premises were destroyed in a fire and all his records were lost apart from a recent analysis that he had made of the latest period's results for his company. He managed to retrieve the following: Sales: $375000 GP margin: 28% Total expenses ratio: 17% Tax Rate 30% Debt of equity 0,75:1 Current Assets as percentage of cost of 22% Sales Current ratio 1.8:1 Return on Equity 11% Question: From the information given reconstruct a Statement of Profit or...
Beek’s house was destroyed by fire and claims were filed with the insurance company.
  Beek’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired James to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a third party beneficiary of the James-insurer contract. Is Beek correct? If so what type of beneficiary is he and why?
On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NP’s adjusted basis...
On January 10, 2017, a fire destroyed a warehouse owned by NP Company. NP’s adjusted basis in the warehouse was $575,000. On March 12, 2017, NP received a $740,000 reimbursement from its insurance company. In each of the following cases: Determine NP’s recognized gain on this property disposition. Assume that NP would elect to defer gain recognition when possible. NP’s board of directors decided not to replace the warehouse. Determine NP’s recognized gain on this property disposition. Assume that NP...
Ayayai Corp. experienced a fire on December 31, 2020, in which its financial records were partially...
Ayayai Corp. experienced a fire on December 31, 2020, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. December 31, 2020 December 31, 2019 Cash $ 33,300 $ 19,500 Accounts receivable (net) 82,200 132,100 Inventory 210,500 188,700 Accounts payable 50,800 92,200 Notes payable 32,700 63,300 Common stock, $100 par 408,700 408,700 Retained earnings 117,300 106,600 Additional information: 1. The inventory turnover is 5.1 times. 2....
Problem 8-28B Computing variances A fire destroyed most of Ordessa Products Corporation’s records. Megan Carey, the...
Problem 8-28B Computing variances A fire destroyed most of Ordessa Products Corporation’s records. Megan Carey, the company’s accountant, is trying to piece together the company’s operating results from salvaged documents. She discovered the following data: Standard materials quantity per unit 2.5 pounds Standard materials price $8 per pound Standard labor quantity per unit 0.6 hour Standard labor price $24 per hour Actual number of products produced 8,000 units Materials price variance $3,168 Favorable Materials usage variance $1,600 Favorable Labor price...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT