Questions
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $511,000 $439,000
Cost of goods sold 281,050 219,500
Selling expenses 91,980 87,800
Administrative expenses 97,090 79,020
Income tax expense 15,330 21,950

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $511,000 % $439,000 %
Cost of goods sold 281,050 % 219,500 %
$ % $ %
Selling expenses 91,980 % 87,800 %
Administrative expenses 97,090 % 79,020 %
$ % $ %
% %
Income tax expense 15,330 % 21,950 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 5 percentage points, while selling expenses   by 2 percentage points, and administrative expenses   by 1 percentage points. Thus, net income as a percent of sales   by 2 percentage points.

In: Accounting

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:        Current...

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $597,000 $543,000
Cost of goods sold 370,140 304,080
Selling expenses 89,550 97,740
Administrative expenses 101,490 81,450
Income tax expense 11,940 21,720

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $597,000 % $543,000 %
Cost of goods sold 370,140 % 304,080 %
Gross profit $ % $ %
Selling expenses 89,550 % 97,740 %
Administrative expenses 101,490 % 81,450 %
Total operating expenses $ % $ %
Income from operations % %
Income tax expense 11,940 % 21,720 %
Net income $ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 6 percentage points, while selling expenses by 3 percentage points, and administrative expenses by 2 percentage points. Thus, net income as a percent of sales by 3 percentage points.

In: Accounting

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:        Current...

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $488,000 $410,000
Cost of goods sold 287,920 217,300
Selling expenses 78,080 77,900
Administrative expenses 87,840 69,700
Income tax expense 14,640 16,400

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $488,000 % $410,000 %
Cost of goods sold 287,920 % 217,300 %
Gross profit $ % $ %
Selling expenses 78,080 % 77,900 %
Administrative expenses 87,840 % 69,700 %
Total operating expenses $ % $ %
Income from operations % %
Income tax expense 14,640 % 16,400 %
Net income $ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 6 percentage points, while selling expenses   by 3 percentage points, and administrative expenses   by 1 percentage points. Thus, net income as a percent of sales   by 3 percentage points.

In: Accounting

14 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two...

14 Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $544,000 $495,000
Cost of goods sold 293,760 242,550
Selling expenses 97,920 99,000
Administrative expenses 108,800 94,050
Income tax expense 16,320 24,750

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $544,000 % $495,000 %
Cost of goods sold 293,760 % 242,550 %
$ % $ %
Selling expenses 97,920 % 99,000 %
Administrative expenses 108,800 % 94,050 %
$ % $ %
% %
Income tax expense 16,320 % 24,750 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 5 percentage points, while selling expenses   by 2 percentage points, and administrative expenses   by 1 percentage points. Thus, net income as a percent of sales   by 2 percentage points.

In: Accounting

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $454,000 $409,000
Cost of goods sold 267,860 216,770
Selling expenses 72,640 77,710
Administrative expenses 81,720 69,530
Income tax expense 13,620 16,360

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $454,000 % $409,000 %
Cost of goods sold 267,860 % 216,770 %
$ % $ %
Selling expenses 72,640 % 77,710 %
Administrative expenses 81,720 % 69,530 %
$ % $ %
% %
Income tax expense 13,620 % 16,360 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 6 percentage points, while selling expenses   by 3 percentage points, and administrative expenses   by 1 percentage points. Thus, net income as a percent of sales   by 3 percentage points.

In: Accounting

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $454,000 $409,000
Cost of goods sold 267,860 216,770
Selling expenses 72,640 77,710
Administrative expenses 81,720 69,530
Income tax expense 13,620 16,360

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $454,000 % $409,000 %
Cost of goods sold 267,860 % 216,770 %
$ % $ %
Selling expenses 72,640 % 77,710 %
Administrative expenses 81,720 % 69,530 %
$ % $ %
% %
Income tax expense 13,620 % 16,360 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 6 percentage points, while selling expenses   by 3 percentage points, and administrative expenses   by 1 percentage points. Thus, net income as a percent of sales   by 3 percentage points.

In: Accounting

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $567,000 $493,000
Cost of goods sold 385,560 310,590
Selling expenses 73,710 73,950
Administrative expenses 79,380 64,090
Income tax expense 11,340 19,720

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $567,000 % $493,000 %
Cost of goods sold 385,560 % 310,590 %
$ % $ %
Selling expenses 73,710 % 73,950 %
Administrative expenses 79,380 % 64,090 %
$ % $ %
% %
Income tax expense 11,340 % 19,720 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales ___ by 5 percentage points, while selling expenses ___ by 2 percentage points, and administrative expenses ___ by 1 percentage points. Thus, net income as a percent of sales ___ by 2 percentage points.

In: Accounting

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $500,000 $440,000
Cost of goods sold 340,000 277,200
Selling expenses 65,000 66,000
Administrative expenses 70,000 57,200
Income tax expense 10,000 17,600

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $500,000 % $440,000 %
Cost of goods sold 340,000 % 277,200 %
$ % $ %
Selling expenses 65,000 % 66,000 %
Administrative expenses 70,000 % 57,200 %
$ % $ %
% %
Income tax expense 10,000 % 17,600 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 5 percentage points, while selling expenses   by 2 percentage points, and administrative expenses   by 1 percentage points. Thus, net income as a percent of sales   by 2 percentage points.

In: Accounting

Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent...

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

       Current Year        Previous Year
Sales $479,000 $402,000
Cost of goods sold 273,030 205,020
Selling expenses 81,430 80,400
Administrative expenses 91,010 68,340
Income tax expense 14,370 20,100

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year Amount Current year Percent Previous year Amount Previous year Percent
Sales $479,000 % $402,000 %
Cost of goods sold 273,030 % 205,020 %
$ % $ %
Selling expenses 81,430 % 80,400 %
Administrative expenses 91,010 % 68,340 %
$ % $ %
% %
Income tax expense 14,370 % 20,100 %
$ % $ %

b. The vertical analysis indicates that the cost of goods sold as a percent of sales   by 6 percentage points, while selling expenses  by 3 percentage points, and administrative expenses   by 2 percentage points. Thus, net income as a percent of sales   by 3 percentage points.

In: Accounting

The Town of Weston has a Water Utility Fund with the following trial balance as of...

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year:

Debits Credits
Cash $ 332,000
Customer accounts receivable 201,200
Allowance for uncollectible accounts $ 30,200
Materials and supplies 120,800
Restricted assets (cash) 252,000
Utility plant in service 7,002,000
Accumulated depreciation—utility plant 2,601,000
Construction work in progress 102,000
Accounts payable 122,400
Accrued expenses payable 76,500
Revenue bonds payable 3,501,000
Net position 1,678,900
Totals $ 8,010,000 $ 8,010,000


During the year ended June 30, 2020, the following transactions and events occurred in the Town of Weston Water Utility Fund:

  1. Accrued expenses at July 1 were paid in cash.
  2. Billings to nongovernmental customers for water usage for the year amounted to $1,381,000; billings to the General Fund amounted to $109,000.
  3. Liabilities for the following were recorded during the year:
Materials and supplies $ 187,000
Costs of sales and services 361,000
Administrative expenses 202,000
Construction work in progress 221,000
  1. Materials and supplies were used in the amount of $276,000, all for costs of sales and services.
  2. After collection efforts were unsuccessful, $14,100 of old accounts receivable were written off.
  3. Accounts receivable collections totaled $1,472,400 from nongovernmental customers and $48,700 from the General Fund.
  4. $1,041,400 of accounts payable were paid in cash.
  5. One year’s interest in the amount of $176,100 was paid.
  6. Construction was completed on plant assets costing $252,000; that amount was transferred to Utility Plant in Service.
  7. Depreciation was recorded in the amount of $262,100.
  8. The Allowance for Uncollectible Accounts was increased by $10,000.
  9. As required by the loan agreement, cash in the amount of $102,000 was transferred to Restricted Assets for eventual redemption of the bonds.
  10. Accrued expenses, all related to costs of sales and services, amounted to $90,000.
  11. Nominal accounts for the year were closed.


Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2020.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2020. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

In: Accounting