prepare the income statement Total sales revenue = 500,000 Sales return = 1% of sales Trade discount = 2% of sales Labor cost = 75,000 Cost of raw material = 25,000 Inventory consumed = 28,000 Factory overhead charges = 28,000 Selling cost = 80,000 Admn. Expenses = 74,000 Interest earned = 10,000 Royalties earned = 9,000 Gain from old capital stock = 9,000 Loss estimated due to fire = 72,000 Income tax = 20%
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prepare the income statement
Total sales revenue = 500,000
Sales return = 1% of sales
Trade discount = 2% of sales
Labor cost = 75,000
Cost of raw material = 25,000
Inventory consumed = 28,000
Factory
Selling cost = 80,000
Admn. Expenses = 74,000
Interest earned = 10,000
Royalties earned = 9,000
Gain from old capital stock = 9,000
Loss estimated due to fire = 72,000
Income tax = 20%
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Solved in 2 steps
- Please answer very fast then i ll upvote Calculate EBIT. Revenue 1,061,751.0 Cost of sales 690,135.0 Selling, general and administration 53,087.0 Other income 11,796.0 Operating income 330,325.0 Interest expense 19,874.0 Profit before tax 310,451.0 Tax expense 46,500.0 Net income 263,951.0 The footnotes mention the following: Cost of sales includes inventory write off costs 39,677.0 Cost of sales includes distribution costs 120,458.0 SG&A includes corporate restructuring expenses 15,570.0 Responses 385,572.0 275,078.0 330,325.0 506,030.0explain your solution Operating margin Market Ratio Operating income Current Ratio = Ravenue 6957873 73686228 = 0.094 Grooss profit cost of goods solds = 0.561 26505347 47180881 Current Assets Current liabilities 72595989 53459728 = 1357956571. Chapter 11: Applying Excel Data $ 72,000,000 $ 3,600,000 $ 18,000,000 24% 4 Sales Net operating income 6. Average operating assets 7 Minumum required rate of return If your formulas are correct, you should get the correct answers to the following questions. a. What is the ROI? ROI % b. What is the residual income? (Nagative amount should be indicated by a minus sign.) Residual income c. Why is the residual income negative? 2. 5.
- 1. ValleMiramar has the following data: Net sales, P1.8 M; Costs of Goods Sold , P 1.08; Operating Expenses, P 315,000; Earning’s before interests and profit, P405,000; Net income, P195,000; Total Stockholders’ Equity P.75M; Total Assets P 1M. . The return on investment is: a. 22.5% b. 26.5% c. 19.5% d. 40.5% 2. Refer to no. 1 the debt. and operating ratio are a. .25 and .775 c. .25 and .175 b. .75 and .775 d. .75 and .175 3. Extracts from the balance sheet ( 000,000 ) of A Co. as follows: Current Assets Merchandise Inventory P 77.1 Accounts Receivable 50.1 Cash on Hand and in 85.0 Creditors: Amounts falling due within one year 70.2 Bank Overdraft Other Creditors…a Rance 0ortotal tSpendingjJariance The Walnut Division of Benton core hurdle rate isug9o. Calculate the return on investment Calculate the profit, nmargin ÇalculateThe invest ment turnover (alculate the residual income20. From the following data calculate: a) P/V Ratio b) Variable cost and c) Profit Rs 80,000 15,000 50,000 Sales Fixed expenses Break even point 000.00 Answer all the question PART-C 21 What are the objectives of management accoun Or b) Distinguish between management accounting a accounting. 22. From the following information calculate the b Total asset/Net worth a. = 3.5 Sales/fixed assets = 6 -
- M MISLANG MANAGEMENT CONSULTANCY SERVICES "Your SECs Is My Existarnce 1,260,000 900,000 360,000 D. Net Sales Cost of goods sold Gross Profit 1. If the given data is Gross profit based on cost of 40%. What is the cost ratio? 2. If the given data is Gross profit based on sales of 40% What is the sales ratio? meetgoogie com sarg youreen St shering Hie ET a t Dee D Mt y nEAssume a company reported the following results: Sales $ 400,e00 Variable expenses Contribution margin Fixed expenses 260,e00 140,000 96,e00 Net operating income $ 44,000 Average operating assets $ 350, 000 The margin is closest to: Muitiple Choice 12.9%. 35.0%. 114.3%.IF XZX has the following data:Profit margin 2%Return on Asset 4%Sales revenues $500,000What is the company Total assets ? O a. $500,000 O b. $300,000 O c. $250,000 O d. $100,000
- b. Assume that more than one product is being sold in each of the four following case situations:AverageContribution Net OperatingVariable Margin Fixed IncomeCase Sales Expenses Ratio Expenses (Loss)1 ........................ $500,000 ? 20% ? $7,0002 ........................ $400,000 $260,000 ? $100,000 ?3 ........................ ? ? 60% $130,000 $20,0004 ........................ $600,000 $420,000 ? ? $(5,000)Qe/ from the following tralasaction, prepar income Statement Sales reven ue tinished Goods V 50006 Net purchoses loo00 rent expenses 250 000 returns sales lo o00 So00 rent revenue 30oo administrutive Expensese 2e00 Sales salaries looo Depreriation other expensese tax income tooo +5006 finished goads 344 7o00 . toooThe following information is for Lawrence Company, who uses the LIFO method: Item Cost NRV MinusNormal Profit Net RealizableValue ReplacementCost a $3.40 $2.79 $4.14 $4.65 b 36.00 28.80 32.40 27.60 c 2.40 1.32 1.56 1.94 d 6.00 5.55 6.15 6.30 e 24.00 20.40 22.80 21.00 f 13.35 10.55 12.30 12.90 1. Determine the lower of cost or market for each inventory item. Item Lower ofCost or Market Value a $ b $ c $ d $ e $ f $ 2. Now assume instead that the company uses FIFO and the inventory is valued using the LCNRV rule, determine the value of each inventory item. Item Lower ofCost or Net Realizable Value a $ b $ c $ d $ e $ f $