(a) Prepare a multiple-step income statement. (b) Calculate the gross profit rate and the profit margin and explain what each means.
Q: Provide detailed Income statement
A: Income Statement is prepared to find out the net profit for the current financial year by…
Q: What is the order of the subtotals that appear on a multi-step income statement? Gross Profit,…
A: Multi step income statement: A multiple step income statement refers to the income statement that…
Q: Describe the content and format of the income statement.
A: Income Statement : Its also called as Profit and loss statement. This report shows the Incomes ,…
Q: Why is the income statement called the "profit and loss statement"?
A: Income Statement is called the profit and loss statement because it records all the incomes and…
Q: Explain the term income statement.
A: The income statement (IS) is one of three financial statements (FS) which records the financial…
Q: Can someone use this to create an example of how to make an income statement pls?
A: Income statement of Adams' shoe shine for the month ended June 30,20XX are as follows
Q: Explain how to prepare multi-step income statement.
A: While preparing the multi-step income statement, there are 8 steps to follow.In a multi-step income…
Q: a. In accounting there is the multi-step income statement and the simple income statement. Which…
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Q: Describe the content of the income statement.
A: The income statement consists of revenues and expenses along with the resulting net income or loss…
Q: which of the following would be considered in the calculation of gross profit? Sales and returns…
A: Gross Profit is the operating profit calculated by deducting the cost of goods sold from the revenue…
Q: Multiple-step Income Statement.
A: Multiple-step income statement is a format of income statement in which items of revenues and…
Q: Complete the following income statement
A: Operating Expense is expense incurred by entity in normal course of business for its normal…
Q: Statement of Comprehensive Income using a Single-step format.
A: In single-step format of Statement of Comprehensive Income, the revenues and expenses are not…
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A: A single statement Components of net income and total net income, the components of other…
Q: Explain why the income statement can also be called a “profit-and-loss statement.”
A: Income statement or profit and loss statement Income statement or profit and loss statement is a…
Q: Explain the presentation of income statement.
A: Income Statement Income Statement is one of the key financial statements of a company It is used…
Q: A multistep income statement divides revenues and expenses further to show. Select one: a. subtotals…
A: An income statement that categorizes incomes and expenses into operational and non-operating heads…
Q: Prepare a single-step statement of income.
A: Income Statement: It is a statement that helps in recording the expenses and income of the company…
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A: Financial statement means the trading and profit and loss account and balance sheet of the company…
Q: Define single-step income statement
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: How to do income statement? Step by step
A: Following is the procedure to prepare an income statement
Q: indicate whether the statement describes a multiple-step income statement or asingle-step income…
A: Multiple step income statement: Multiple step Income statement, as the name suggests, is an income…
Q: Briefly explain the difference between the single-step and multiple-step income statement formats.
A: Definition:
Q: Prepare a multi-step income statement in proper form.
A: Income statement: It refers to the statement prepared by the company in which recording of revenue…
Q: how is profit or loss calculated on an income statement?
A: Profit and loss is calculated as below-
Q: what is recasting of the income statement, and give three examples of items that are recasted?
A: The company prepares the income statement to know the net income or losses that arise during the…
Q: Prepare the Income Statement t
A:
Q: Show the income statement equation and define eachelement.
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Q: Explain the three major items reportedon the income statement.
A:
Q: Required: a. Prepare a single-step income statement, b. Prepare a multiple-step income statement
A: An organization's financial outcomes for a specific time period are shown on the income statement.…
Q: indicate whether the statement describes a multiple-step income statement or asingle-step income…
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: Present the information in a multistep income statement
A: Income statement: It is a financial statement prepared by a company that reports revenues and…
Q: Describe the multi-step income statement.
A:
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A: Financial Statement Analysis: Financial information of business is analyzed by the analysts,…
Q: Prepare Multi step income statement
A: Formula: Net income = Total revenues - Total expenses
Q: Describe the single-step income statement.
A:
Q: multiple-step income statement
A: Multiple-step income statement is a format for preparing income statement by grouping income and…
Q: hat is the standard income statement equation'
A: Standard income statement equation contains 3 parts Net income , revenue and expenses . Net income…
Q: Prepare a multiple-step income statement. (Li either a negative sign preceding the number e.g.-
A: An income statement is a financial statement prepared at the end of the accounting year, to know the…
Q: What is shown on a multi-step income statement but not on a single-step income statement?
A: A single-step income statement is a concise summary of a company's earnings that requires only one…
Q: In a multiple-step income statement, the dollar amount for income from operations is always the same…
A: A multiple step income statement refers to the income statement that shows the operating and…
Q: Explain the purpose of income statement.
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: The main purpose of the statement of profit or loss is to determine O the amount of income and…
A: A profit and loss statement is a financial statement that is prepared so as to determine the…
(a) Prepare a multiple-step income statement.
(b) Calculate the gross profit rate and the profit margin and explain what each means.
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- Gray Companys financial statements showed income before income taxes of 4,030,000 for the year ended December 31, 2020, and 3,330,000 for the year ended December 31, 2019. Additional information is as follows: Capital expenditures were 2,800,000 in 2020 and 4,000,000 in 2019. Included in the 2020 capital expenditures is equipment purchased for 1,000,000 on January 1, 2020, with no salvage value. Gray used straight-line depreciation based on a 10-year estimated life in its financial statements. As a result of additional information now available, it is estimated that this equipment should have only an 8-year life. Gray made an error in its financial statements that should be regarded as material. A payment of 180,000 was made in January 2020 and charged to expense in 2020 for insurance premiums applicable to policies commencing and expiring in 2019. No liability had been recorded for this item at December 31, 2019. The allowance for doubtful accounts reflected in Grays financial statements was 7,000 at December 31, 2020, and 97,000 at December 31, 2019. During 2020, 90,000 of uncollectible receivables were written off against the allowance for doubtful accounts. In 2019, the provision for doubtful accounts was based on a percentage of net sales. The 2020 provision has not yet been recorded. Net sales were 58,500,000 for the year ended December 31, 2020, and 49,230,000 for the year ended December 31, 2019. Based on the latest available facts, the 2020 provision for doubtful accounts is estimated to be 0.2% of net sales. A review of the estimated warranty liability at December 31, 2020, which is included in other liabilities in Grays financial statements, has disclosed that this estimated liability should be increased 170,000. Gray has two large blast furnaces that it uses in its manufacturing process. These furnaces must be periodically relined. Furnace A was relined in January 2014 at a cost of 230,000 and in January 2019 at a cost of 280,000. Furnace B was relined for the first time in January 2020 at a cost of 300,000. In Grays financial statements, these costs were expensed as incurred. Since a relining will last for 5 years, Grays management feels it would be preferable to capitalize and depreciate the cost of the relining over the productive life of the relining. Gray has decided to nuke a change in accounting principle from expensing relining costs as incurred to capitalizing them and depreciating them over their productive life on a straight-line basis with a full years depreciation in the year of relining. This change meets the requirements for a change in accounting principle under GAAP. Required: 1. For the years ended December 31, 2020 and 2019, prepare a worksheet reconciling income before income taxes as given previously with income before income taxes as adjusted for the preceding additional information. Show supporting computations in good form. Ignore income taxes and deferred tax considerations in your answer. The worksheet should have the following format: 2. As of January 1, 2020, compute the retrospective adjustment of retained earnings for the change in accounting principle from expensing to capitalizing relining costs. Ignore income taxes and deferred tax considerations in your answer.Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
- Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.The following data (in millions) are taken from the financial statements of Target Corporation: a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: 1. Revenue 2. Operating expenses 3. Operating income b. What conclusions can you draw from your analysis of the revenue and the total operating expenses?
- Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.
- Athenian Venues Inc. just reported the following selected portion of its financial statements for the end of 2020. Your assistant has already calculated the 2020 end-of-year net operating working capital (NOWC) from the full set of financial statements (not shown here), which is 13 million. The total net operating capital for 2019 was 50 million. What was the 2020 net investment in operating capital? Athenian Venues Inc.: Selected Balance Sheet Information as of December 31 (Millions of Dollars)Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?