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(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; begins inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income

(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; begins inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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Another way to look at the concept of inventory turnover is by measuring sales per square foot. Taking the average inventory at retail and dividing it by the number of square feet devoted to a particular product will give you average sales per square foot. When you multiply this figure by the inventory turnover rate, you get the annual sales per square foot.
(b) You have just received a report with the second-quarter figures. Prepare a comparative income statement with horizontal analysis for the first and second quarter of 2019: gross sales, $296,000; sales discounts, $41,300; beginning inventory, April 1, $103,100; ending inventory, June 30, $96,580; net purchases, $84,320; total operating expenses, $126,500; and income tax, $16,500. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Comparative Income Statement First and Second Quarter, 2019 Increase (Decrease) 2nd Quarter 1st Quarter Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Beginning Net Purchases Goods Available for Sale Less: Merchandise Inventory, Ending. Cost of Goods Sold Gross Margin Operating Expenses Income before Income Tax Income Tax Net Income $ Amount Percent 199
Transcribed Image Text:(b) You have just received a report with the second-quarter figures. Prepare a comparative income statement with horizontal analysis for the first and second quarter of 2019: gross sales, $296,000; sales discounts, $41,300; beginning inventory, April 1, $103,100; ending inventory, June 30, $96,580; net purchases, $84,320; total operating expenses, $126,500; and income tax, $16,500. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Comparative Income Statement First and Second Quarter, 2019 Increase (Decrease) 2nd Quarter 1st Quarter Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Beginning Net Purchases Goods Available for Sale Less: Merchandise Inventory, Ending. Cost of Goods Sold Gross Margin Operating Expenses Income before Income Tax Income Tax Net Income $ Amount Percent 199
(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; beginning inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income
Transcribed Image Text:(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; beginning inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income
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