The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLING Income statement Comparison (Amounts in thousands) Sales Cost of goods sold Gross profit Expenses: Wages Utilities Repairs Selling Total Expenses Operating income Operating income % Total assets (investment base) Return on investment Residual income (8% cost of capital) Current Year $33,750 21,937.5 $11,812.5 $8,800 700 169 506 $10,175 ? ? $4,500 ? ? Prior Year $24,750 16,830 $7,920 $6,189 300 300 100 $6,889 ? ? $1,500 ? ?

The income statement comparison for Forklift Material Handling shows the income statement for the current and prior year. FORKLIFT MATERIAL HANDLING Income statement Comparison (Amounts in thousands) Sales Cost of goods sold Gross profit Expenses: Wages Utilities Repairs Selling Total Expenses Operating income Operating income % Total assets (investment base) Return on investment Residual income (8% cost of capital) Current Year $33,750 21,937.5 $11,812.5 $8,800 700 169 506 $10,175 ? ? $4,500 ? ? Prior Year $24,750 16,830 $7,920 $6,189 300 300 100 $6,889 ? ? $1,500 ? ?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.20E

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