Use the appropriate information from the data provided below to calculate operating income for theyear ended December 31, 2020.Cost of goods soldGeneral and administrative expensesNet cash provided by financing activitiesDividends paidIncome tax expenseOther selling expensesNet salesAdvertising expenseAccounts payable$ 234,00096,000138,00032,00022,00052,000556,00078,00066,000

Operating income is the total profit available to company after deducting cost of goods sold and all…

Answered: Use the appropriate information from…

Use the appropriate information from the data provided below to calculate operating income for the year ended December 31, 2020.

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

See similar textbooks

Related questions

Q: the year to the end of the year. What is Newton's cash payment to suppliers for inventory? Ritory of…

A: Ledger Accounts are useful for calculating the missing values.Ledger Accounts are easy to understand…

Q: Prepare an income statement for the year ended December 31, through the gross profit for Baxter…

A: Income Statement: It is a part of the financial statement of a company in which revenue and expenses…

Q: Required information [The following information applies to the questions displayed below]…

A: There are some methods to calculate the value of closing inventory and cost of goods sold in…

Q: What does Accounting harmonization mean? Differentiate harmonization from convergence or adoption.…

A: Answer:- IFRS meaning:- A group of accounting standards called international financial reporting…

Q: Oriole Company sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is…

A: LIFO stands for "Last-In, First-Out," and it is a method of inventory valuation used in accounting.…

Q: a. Outstanding checks, $670. b. Deposits in transit, $1,500. C. NSF check from customer, no. 548,…

A: Bank reconciliation is the process of comparing and matching the balances in a company's bank…

Q: Required information [The following information applies to the questions displayed below]…

A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…

Q: that began operations six months ago. Sales have exceeded management's most optimistic projections.…

A: Cash budget is an estimation of the cash flows of a business over a specific period of time. it is…

Q: Required information [The following information applies to the questions displayed below.] Tracy…

A: The journal entries are prepared to record the transactions on regular basis. The gross method…

Q: 1. Using year-end balances for all ratios, compute the t

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Use the following information for Exercises 13-14 below. (Algo) [The following information applies…

A: The trial balance represents the final balance of each account of the business. The financial…

Q: Luzadis Company makes furniture using the latest automated technology. The company uses a job-order…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: Required information Problem 1-7A (Algo) Analyzing transactions and preparing financial statements…

A: Accounting equation is one of the fundamental concept being used in accounting. This says that…

Q: Which of the following accounts are most likely to be used in a journal entry to record the budget?…

A: According to the question given, we need to select the correct option and explain it.Budget:Budget…

Q: Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue…

A: Financial statements are those statements which are prepared at the end of accounting period for the…

Q: Prepare entries for a share dividend. (LO 5) AL BE11-8 Valiant Corporation has 56,000 $10 par value…

A: Dividend is the part or share of profits being distributed to shareholders. It includes cash…

Q: Optimal Capital Structure with Hamada Beckman Engineering and Associates (BEA) is considering a…

A: Capital structure refers to the combination of the values of debt and equity used for financing the…

Q: (please show how you got the answer) 2. A business has the following items in it: - Land 500 000…

A: Lets understand the basics.As per balance sheet equation, total assets are…

Q: Many tax preparation firms offer their clients a refund anticipation loan (RAL). For a fee, the firm…

A: The annual rate of interest refers to the expense that is being charged by the lender from the…

Q: The following information applies to the questions displayed below] Rustafson Corporation is a…

A: Activity-based costing can be a valuable tool for organizations that need a more detailed…

Q: The following information relates to Star Outlet Opening stock: 1 000 000 Purchases 300 000…

A: Lets understand the basics.Cost of sales means a cost for producing and selling of goods. It is…

Q: uture value and compound interest formula.

A: Annuity is used in case of a future annuity – suppose an equal sum of money is invested in the bank…

Q: What is the Net Cash Flow?

A: Given in the question:Net Income = $2,262,000Depreciation during the year 2022 = $900,000The net…

Q: Watrous Company uses the net credit sales method to estimate bad debt expense and has estimated that…

A: The accounts receivable arise as a result of sales made on the account. The payment due from the…

Q: ABC company manufactures rivets in an automated factory. The company uses standard costing system to…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of .7 and an…

A: In this question, we will calculate the correct answer for the reward-risk ratios for the stocks y…

Q: REI Co-Op Inc. has the following unadjusted year end trial balance information available for 2022.…

A: The allowance for credit losses is the contra asset for the business. The net account receivables is…

Q: The last request from the head of the division to you is based o millions of dollars): Assets $…

A: According to book value accounting, we need to make adjustments to account for the uncollectable…

Q: A business has the following items in it - Land 1 000 000 - Vehicles? - Debtors 60 000 - Cash…

A: Hi studentSince there are multiple questions, we will answer only first question.…

Q: pp. Subject :- Accounting

A: Income statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: The adjusted trial balance for Chiara Company as of December 31 follows. Debit $ 148,500 53,500…

A: Financial statements is the one prepared by the companies to depict their financial performance and…

Q: Consider the rental rate of capital for an appliance rental company such as Rent-A-Center. Suppose…

A: Depreciation expense is reduction in the value of assets due to its use, wear or tear.Depreciation…

Q: Conway Designs established a $240 petty cash fund on October 1, 2023. Prepare the entry to replenish…

A: Petty cash is cash used to pay day to day small expenses of organization.It will be replenished…

Q: Following are the budgeted income statements for the second quarter of 2022 for SeaTech…

A: Budget:Budget is a plan that a company drafts in order to forecast their incomes and expenditures.…

Q: Wiley Company's income statement for Year 2 follows: $ 2,700 Sales Cost of goods sold Gross margin…

A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Q: Jackson's Clothing Store has provided the following details: Jan. 10 Inventory purchased on account…

A: Based on the given information, let's calculate the payment made to the vendor for the purchases on…

Q: For the year just completed, Hanna Company had net income of $37,500. Balances in the company’s…

A: Net income is modified and changed from accrual basis to cash basis under the indirect method. The…

Q: 10. Ramona Diaz Ltd. produces two products, P1 and P2, at its two departments: Machining and…

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: . Cost of goods manufactured for the year. 5. Finished Goods Inventory on December 31.

A: Cost of goods manufactured means total costs and expenses incurred for production and manufacturing.…

Q: Lovato Motors Inc. has net cash flows from operating activities of $517,000. Cash flows used for…

A: FCF stands for free cash flow refers to the amount of available cash repaid with the company to the…

Q: Hi-Tek Manufacturing, Incorporated, makes two types of industrial component parts-the B300 and the…

A: Activity-based costing is a costing approach in which a company's activities are identified and the…

Q: Williams-Santana Incorporated is a manufacturer of high-tech industrial parts that was started in…

A: The books of accounts maintained by the company may sometimes have errors due to mistakes made by…

Q: Baguio Corporation has these selected data: Units to be sold 25,000 Total Cost of the units P500…

A: Selling price of a product is the price at which company sells its products or service.Company sets…

Q: Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent.…

A: Residual Income is used to assess the economic value added by an investment or business unit. If the…

Q: Which one of the following is the variance that deals with under or over achievement of budgeted…

A: Budgeted direct labor hours refer to the estimated or planned amount of time that is allocated for…

Q: Crane Corporation began operations on January 1, 2022. During its first 3 years of operations, Crane…

A: The retained earning represent the profit that is not distributed by the entity, it means it is the…

Q: Data for the next 2 questions: Aunt's Fancy Cookie Company manufactures and sells three flavors of…

Q: Cash balance per company books on April 30 Deposits in transit at month-end Outstanding cheques at…

A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Q: At 30 June 2022, the trial balance of XERO PTY Ltd contained the following amounts before…

A: Journal Entry is the primary step to record the transaction in the books of accounts.The increase in…

Q: Buchanan Company has 15,000 obsolete model cell phones that are carried in inventory at a cost of…

A: Sunk cost is the cost which is already incurred and can't be recovered. They are not relevant for…

Question

Use the appropriate information from the data provided below to calculate operating income for the
year ended December 31, 2020.
Cost of goods sold
General and administrative expenses
Net cash provided by financing activities
Dividends paid
Income tax expense
Other selling expenses
Net sales
Advertising expense
Accounts payable
$ 234,000
96,000
138,000
32,000
22,000
52,000
556,000
78,000
66,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Operating income:

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
Cost of Goods Sold, Income Statement. and Statement of Comprehensive Income Gaskin Company derives the following items from its adjusted trial balance as of December 31, 2019: The following; additional information is also available. The December 31, 2019, ending inventory is 14,700. During 2019, 4,200 shares of'common stock were outstanding the entire year. The income tax rate 30% on all items of income. Required: 1. As a supporting document for Requirements 2 and 3, prepare a separate schedule for Gaskins cost of goods sold. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 multiple-step income statement. 4. Prepare a 2019 statement of comprehensive income.
Given the following information, convert Cardinal Companys cost of goods sold from its income statement into payments to suppliers for its statement of cash flows.
Use the following excerpts from Jasper Companys financial statements to determine cash paid to suppliers for inventory in 2018.
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
Use the following excerpts from Huckleberry Companys financial statements to determine cash paid to suppliers for inventory in 2018.
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?
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.
Fava Company began operations in 2018 and used the LIFO inventory method for both financial reporting and income taxes. At the beginning of 2019, the anticipated cost trends in the industry had changed, so that it adopted the FIFO method for both financial reporting and income taxes. Fava reported revenues of 300,000 and 270,000 in 2019 and 2018, respectively. Fava reported expenses (excluding income tax expense) of 125,000 and 120,000 in 2019 and 2018, which included cost of goods sold of 55,000 and 45,000, respectively. An analysis indicates that the FIFO cost of goods sold would have been lower by 8,000 in 2018. The tax rate is 21%. Fava has a simple capital structure with 15,000 shares of common stock outstanding during 2018 and 2019. It paid no dividends in either year. Required: 1. Prepare the journal entry to reflect the change. 2. At the end of 2019, prepare the comparative income statements for 2019 and 2018. Notes to the financial statements are not necessary. 3. At the end of 2019, prepare the comparative retained earnings statements for 2019 and 2018.