Sales 560,053 Variable expenses, 334,667 Fixed expenses 48,673 Compute the degree of operating leverage rounded to two decimal places. Enter only the amount for the degree of operating leverage rounded to two decimal places based on general rounding rules In the box provided below. Enter the amount only. Do not

Sales 560,053 Variable expenses, 334,667 Fixed expenses 48,673 Compute the degree of operating leverage rounded to two decimal places. Enter only the amount for the degree of operating leverage rounded to two decimal places based on general rounding rules In the box provided below. Enter the amount only. Do not

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Joyner Company’s income statement for Year 2 follows: Sales $ 705,000 Cost of goods sold 92,000 Gross margin 613,000 Selling and administrative expenses 150,900 Net operating income 462,100 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes 468,100 Income taxes 187,240 Net income $ 280,860 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 263,360 $ 89,900 Accounts receivable 227,000 113,000 Inventory 319,000 288,000 Prepaid expenses 9,000 18,000 Total current assets 818,360 508,900 Property, plant, and equipment 634,000 514,000 Less accumulated depreciation 166,100 130,200 Net property, plant, and equipment 467,900 383,800 Loan to Hymans Company 42,000 0 Total assets $ 1,328,260 $ 892,700 Liabilities and Stockholders' Equity Accounts payable $ 314,000 $ 254,000 Accrued liabilities 42,000 53,000 Income taxes payable 84,400 81,700 Total…
Current Attempt in Progress Concord Corporation reported net sales $620,000, cost of goods sold $341,000, operating expenses $124,000, and net income $52,080. Calculate the profit margin and gross profit rate. (Round Profit margin answer to 2 decimal places, e.g. 10.20%. Round Gross profit rate answer to 0 decimal place, e.g. 10%.) Profit margin % Gross profit rate % eTextbook and Media
Sales revenue $39,900 $75,300 $573,800 $35,400 $55,100Cost of goods sold 19,000 49,500 265,900 19,300 30,200Operating expenses 10,100 40,500 233,700 11,900 18,300 Total expenses 29,100 90,000 499,600 31,200 48,500Operating profit (loss) $10,800 $(14,700) $74,200 $4,200 $6,600Identifiable assets $35,200 $79,900 $493,400 $66,300 $49,900 Prepare the necessary disclosures required by GAAP
ABC Corporation Comparative Income Statements in € For the Years Ended December 31, 20X3 and 20X2 20X3 20X2 Net Sales 4,915,200 4,719,600 Cost of goods (3,133,200) (3,012,600) Gross margin 1,782,000 1,707,000 Operating expenses Selling expenses (715,200) (777,000) General & administrative expenses (670,800) (634,800) Total operating expenses (1,386,000) (1,411,800) Income from operations 396,000 295,200 Interest expense (98,400) (58,800) Net income before taxes 297,600 236,400 Income taxes (93,600) (85,200) Net income after taxes 204,000 151,200 Earnings per share 3.4 2.52 ABC Corporation Comparative Balance Sheets in € December 31, 20X3 and 20X2 Assets 20X3 20X2 Liabilities & Stockholders' Equity 20X3 20X2 Fixed assets: Stockholders' equity: Property, plant and…
Sales revenue $104,000 $enter a dollar amount Sales returns and allowances enter a dollar amount 4,000 Net sales 98,000 129,000 Cost of goods sold 64,600 enter a dollar amount Gross profit enter a dollar amount 56,760 Operating expenses 20,400 enter a dollar amount Net income enter a dollar amount 21,930 Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 75.5%.) Crane Company Sheridan Company Profit margin enter profit margin in percentages rounded to 1 decimal place % enter profit margin in percentages rounded to 1 decimal place % Gross profit rate enter gross profit rate in percentages rounded to 1 decimal place % enter gross profit rate in percentages rounded to 1 decimal place %
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Given the following information: Revenue from Operations 3,40,000 Cost of Revenue from Operations 1,20,000 Selling expenses 80,000 Administrative Expenses 40,000 Calculate Gross profit ratio and Operating ratio.
Assuming Net Sales is $180,000, Cost of Goods Sold is $79,000, Selling Expenses are $28,500, General Expenses are $22,800, and Interest Expense is $2,000, then Income from Operations is a.$101,000. b.$95,300. c.$72,500. d.$49,700. e.$27,700.
The following is Cullumber Company’s income statement for the past year. Sales revenue $336,000 Cost of goods sold 134,400 Gross margin 201,600 Operating expenses 145,600 Operating income $56,000 What is the gross margin percentage? (Round answer to 0 decimal places, e.g. 45%.) Gross margin percentage enter gross margin percentage rounded to 0 decimal places %
Selling, general, and administrative expenses were $149,600; net sales were $680,000; interest expense was $16,300; research and development expenses were $71,400; net cash provided by operating activities was $180,500; income tax expense was $15,240; cost of goods sold was $374,000. a. Calculate operating income for the period. b. Calculate net income for the period.
Dr. Zhivàgo Diagnostics Corp.'s income statement for 20X1 is as follows: Sales $ 2,970,000 Cost of goods sold 1,600,000 Gross profit $ 1,370,000 Selling and administrative expense 375,000 Operating profit $ 995,000 Interest expense 57,000 Income before taxes $ 938,000 Taxes (30%) 281,400 Income after taxes $ 656,600 a. Compute the profit margin for 20X1. (Input the profit margin as a percent rounded to 2 decimal places.) b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2? (Input the profit margin as a percent rounded to 2 decimal places.) Income after taxes ......................... Profit margin
Pollux Company had the following income statement for last year: Sales $360,000 Less: Cost of goods sold 195,000 Gross margin $165,000 Less: Selling & administrative expense 78,600 Operating income $ 86,400 Beginning assets were $565,000 and ending assets were $597,000.(Carry computations out to three decimal places.) A. What are average operating assets? B. What is margin? C. What is turnover? D. What is ROI?