5:31 Done FM 1 CHAPTER 3 EXERCISES Illustration: 3 From the following particulars of AVS LLC., for the year 2002 and 2003, you are required to prepare a comparative Income Statement : Statement of Profit and Loss Account Particulars 2002 2003 RO. RO. Net Sales 4,000 5,000 Less : Cost of Goods Sold 3,000 3.750 Gross Profit Less : Operating Expenses Ofice & Administrative Expenses 250 Selling & Distribution Expenses 225 300 Total Operating Expenses 425 550 Net Profit 575 700 Solution:

5:31 Done FM 1 CHAPTER 3 EXERCISES Illustration: 3 From the following particulars of AVS LLC., for the year 2002 and 2003, you are required to prepare a comparative Income Statement : Statement of Profit and Loss Account Particulars 2002 2003 RO. RO. Net Sales 4,000 5,000 Less : Cost of Goods Sold 3,000 3.750 Gross Profit Less : Operating Expenses Ofice & Administrative Expenses 250 Selling & Distribution Expenses 225 300 Total Operating Expenses 425 550 Net Profit 575 700 Solution:

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.26EX: Comprehensive Income Anson Industries, Inc. reported the following information on its 20Y1 income...

See similar textbooks

Similar questions

Comprehensive Income Anson Industries, Inc. reported the following information on its 20Y1 income statement: Sales 4,000,000 Cost of good s sold 2,300,000 Operating expenses 1,000,000 Income tax expense 280,000 Other comprehensive income 450,000 Prepare the following for Anson Industries, Inc.: A. Income statement, including comprehensive income. B. Income statement and a separate statement of comprehensive income.
P4.5 (LO 2, 3, 4, 5) (Unusual or Infrequent Items) Presented below is a combined single-step income and retained earnings statement for Nerwin Company for 2020. (000 omitted) Net sales revenue $640,000 Costs and expenses Cost of goods sold $500,000 Selling, general, and administrative expenses 66,000 Other, net 17,000 583,000 Income before income tax 57,000 Income tax 19,400 Net income 37,600 Retained earnings at beginning of period, as previously reported 141,000 Adjustment required for correction of error (7,000) Retained earnings at beginning of period, as restated 134,000 Dividends on common stock (12,200) Retained earnings at end of period $159,400 Additional facts are as follows. 1. “Selling, general, and administrative expenses” for 2020 included a charge of $8,500,000…
Subject 2 Part 1 Sanborn Corporation’s condensed comparative income statement and balance sheet for 20X8 and 20X7 appears below. Sanborn Corporation Comparative Income Statements in € For the Years Ended December 31, 20X8 and 20X7 20X8 20X7 Net Sales 3,276,800 3,146,400 Cost of goods (2,088,800) (2,008,400) Gross margin 1,188,000 1,138,000 Operating expenses Selling expenses (476,800) (518,000) General & administrative expenses (447,200) (423,200) Total operating expenses (924,000) (941,200) Income from operations 264,000 196,800 Interest expense (65,600) (39,200) Net income before taxes 198,400 157,600 Income taxes (62,400) (56,800) Net income after taxes 136,000 100,800 Earnings per share 3.40 2.52 Sanborn Corporation Comparative Balance Sheets in € December 31, 20X8 and 20X7 Assets 20X8 20X7 Liabilities &…
Question 5 Part I The following information has been extracted from the books of the Advent Corporation in respect of itstwo operating divisions:Aluminum Wire Totals$ $ $Sales Revenue 1,664,200 96,200 1,760,400Cost of goods Sold 978,520 76,470 1,054,990Gross Profit 685,680 19,730 705,410Operating Expenses 527,940 43,600 571,540Net Income 157,740 (23,870) 133,870Additionally, it is determined that in the Wire Division, 10% of the Cost of Goods Sold is Fixed and 65%of the Operating Expenses is Fixed.None of the fixed costs will be saved if the Wire Division is closed.The company hired a Consultant and they have recommended that the Wire Division be discontinued. Required: Should Advent Corporation follow the recommendation of the Consultant?
PRACTICE Q 4 Current Attempt in Progress This information relates to Sunland Co. 1. On April 5, purchased merchandise on account from Sarasota Company for $ 22,400, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $ 950 on merchandise purchased from Sarasota Company. 3. On April 7, purchased equipment on account for $ 27,800. 4. On April 8, returned some of April 5 merchandise, which cost $ 3,200, to Sarasota Company. 5. On April 15, paid the amount due to Sarasota Company in full. (a) Prepare the journal entries to record these transactions on the books of Sunland Co. using a periodic inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a…
Q 2 (12 marks) Gideon Corp. is a reinsurance and financial services company. Gideonstrongly believes in evaluating the performance of its stand-alone divisions using financialmetrics such as ROI and residual income. For the year ended December 31, 2019, Gideon’sCFO received the following information about the performance of the property/casualtydivision:Sales Revenues $ 900 000Operating Income 225 000Total Assets 1 500 000Page 2 of 3Current Liabilities 300 000Debt (Interest rate: 5%) 400 000Common Equity (book value) 500 000For the purposes of divisional performance evaluation, Gideon defines investment as totalassets, and income as operating income (that is, income before interest and taxes). The firmpays a flat rate of 25% in taxes on its income.Required:1. What was the net income after taxes of the property/casualty division? (4 marks)2. What was the division’s ROI for the year? (4 marks)3. Based on Gideon’s required rate of return of 8%, what was the property/casualtydivision’s…
Hw.131. Sheridan Corporation reported net sales of $284,700, cost of goods sold of $156,585, operating expenses of $43,800, net income of $28,470, beginning total assets of $537,100 and ending total assets of $604,200 (a1) Calculate profit margin and gross profit rate. (Round answers to 1 decimal place, eg10.2%)
A2 1g May I please have the answer in formula form and not in excel. Thx:) Use the following information for Delta Corporation to answer question 1: Year 20X1 20X2 Net sales $1,500,000 $1,656,598 Cost of goods sold 675,000 745,469 Depreciation 270,000 298,188 Interest paid 43,600 44,000 Cash 127,500 140,811 Account’s receivable 450,000 496,980 Inventory 525,000 579,809 Net fixed assets 1,800,000 1,987,918 Accounts payable 375,000 414,150 Notes payable 45,000 50,000 Long-term debt 500,000 500,000 Common stock 1,000,000 1,000,000 Retained earnings 982,500 1,241,368 Tax rate 35% 35% Dividend payout 30% 30% Delta has 600,000 common shares outstanding. The firm is projecting a 20% increase in net sales for the coming year (20X3). Delta uses the percentage of sales approach to plan for its financing needs. In using this approach, the firm assumes that cost of…
Q#6 The comparative balance sheet of Paton Corporation at Dec 31, 2004 and 2003 is as follows: Assets 2004 2003 Cash 60,900 52,800 Trade receivable 86,100 70,000 Inventory 126,600 136,700 prepaid expense 4,400 3,100 Land 65,000 65,000 Building 381,500 291,500 Accumulated Depreciation- Building (154,600) (143,400) Machinery 300,500 300,500 Accumulated Dep.-machinery (101,200) (71,500) Patents 30,800 38,500 800,000 743,200 Liabilities and stockholder's Equity Account payable 58,800 88,800 Dividends payable 9,400 8,250 Salaries payable 5,000 5,450 Mortgage payable 55,000 ---- Bonds payable ---- 110,000 Common stock 450,000 350,000 Paid-in capital in excess of par 80,000 70,000 Retained earnings…
Question C5 Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 Operating profit 98 Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2020 and 2019 2020 2019 OMR in million OMR in million Non – current assets Property, plant and equipment Land and buildings 155 155 Plant and machinery 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities…
Q 2 Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.5 X Days sales outstanding: 36.5 days (Calculation is based on a 365-day year) Inventory turnover ratio: 5 X Fixed assets turnover: 3.0 X Current ratio: 2.0 X Gross profit margin on sales: (Sales - Cost of goods sold) ∕ Sales = 25% Cash ------------ Current Liabilities -------- Accounts Receivables ------------ Long Term Liabilities 60000 Inventories ------------ Common Stock -------- Fixed Assets ------------ Retained Earnings 97500 Total Assets 300000 Total Liabilities and Equity --------- Sales Cost of goods sold ---------
i need Part B solution Part A here solution Computation of net income: Net sales 680,400 Less: cost of goods sold (327,600) Gross profit 352,800 Less: administrative expense (126,000) Less: selling expense (100,800) Operational income 126,000 Discontinued operations (loss before income tax) (50,400) Income before tax 75,600 Less: income tax (30%) (22,680) Net income 52,920 Hence, net income for 2022 is calculated as €52,920.