What is the Operating Income?
Q: The cost that is incurred in the process of generating the income will be called as O a. Expense O…
A: Expense is the amount of cost incurred during the period. Revenue is the total amount of receipts.…
Q: What items are included in the company's operating income?
A: The performance of the company will be evaluated using the operating income of the company.…
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: What formula is used to determine net profit
A: Net profit is the actual income earned by an organization after paying all the expenses. It is…
Q: What is comprehensive income? How does comprehensive income differ from net income? Where do…
A: Comprehensive income:Comprehensive income represents the amount of net income plus other…
Q: What does comprehensive income provides?
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: What is comprehensive income, and what does it include?
A:
Q: The difference between revenues and expenses is net income. What is net income?
A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…
Q: how much was net income?
A: Net Income = Change in Retained Earnings + Dividend paid Retained Earnings in 2017 = Total…
Q: haat is the relationship between Income Measurement and Asset Valuation?
A: Profit or loss calculation is indeed a simplified method of calculating income. An accountant…
Q: WHAT IS THE TOTAL COMPREHENSIVE INCOME
A: Incomes routed through profit and loss are shown pretax and at the end the income tax is reduced…
Q: What is retained earning
A: The retained earnings which is also known as ploughed back profit is expalined…
Q: How much is the Total Service and Business Income collected
A: Total service income collected: Particulars Amount(P) Permit Fee 410000 Processing fee 8000…
Q: Explain the components of non operating income.
A: Non Operating Income is that part of an organisation's income that is obtained from activities not…
Q: How much income should be declared by Junnel?
A: When creditor foregoes part/full claim and the creditor also pays cash, then these 2 are considered…
Q: termine income from the operations?
A: Income from operations is also known as operating income (EBIT) (IFO). The profit created by a…
Q: What is an income statement, and what information doesit provide?
A: A financial statement that comprises of all the records of money received as revenue and spent as…
Q: What are operating expenses?
A: Expenses refers to the money outflow or the assets outflow to another company or to individual…
Q: What is comprehensive income?
A: Definition: Comprehensive Income: When there is a change in the total stockholder's equity from all…
Q: Why must a cost be assigned to retained earnings?
A: Likewise, debt and equity financing, retained earnings has also some cost. The predictor care about…
Q: What is the relationship between Income Measurement and Asset Valua
A: Profit or loss calculation is a simplified method of calculating income. An accountant defines…
Q: How can we determine the net income from operations and then adjust the net income?
A:
Q: Income statement?
A: Income statement is one of the financial statement of the business, which shows all incomes and all…
Q: How to calculate or compute the operating income and the net income
A: Operating Income: Income generated from the business operation is called operating income. In simple…
Q: Net income *?
A: Looking the bottom line of the income statement, net income = P650000
Q: Define current operation income?
A: Current operation income otherwise called as operating income.Operating Income: Operating income is…
Q: When is Profit and Loss Account made? Why?
A: Profit and loss account: profit and loss account also called an income statement. Every business…
Q: Using the following information, what is the amount of income from operations?
A: 1. Rent Revenue isn't operating income. That's why its not added to calculate income from…
Q: How to compute the amount of net income or net loss
A: Net Income or net loss is computed by preparing the income statement.The first step in computing the…
Q: How much is the amount reported as Cther Income?
A: Other income is the income which a business or a company has earned during the year which has come…
Q: How does the income statement affect the balance sheet?
A: Balance Sheet: It is also termed as the Statement of Financial Position. Balance Sheet represents a…
Q: What is income approach measurement?
A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…
Q: What is the net income
A: Income refers to the revenue which is received by the business when goods and services are sold or…
Q: What is the net income?
A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…
Q: What is gross income?
A: The concept of gross income can be understood in two contexts 1. for corporates 2. for individuals
Q: what is asset? what is gross profit?
A: Financial statements: These are the financial reports prepared by an organization for a financial…
Q: How do gross profits, operating income, and net income differ
A: In finance when making or analyzing an income statement we look into different types of income or…
Q: How do I calculate Net Income & Net Profit Margin
A: Net income: The bottom line of income statement which is the result of excess of earnings from…
Q: what is assets? what is non-current assets? what is current assets? what is equity? what is…
A: Since you have asked multiple questions, we will solve the first seveb questions for you. If you…
Q: What is net operating income approach, what are the assumptions of this approach. In what…
A: What is net operating income approach, what are the assumptions of this approach. In what conditions…
Q: What is the gross profit? | Select) How much is the operating expense? [ Select ] | Select) How much…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: Explain the following and describe its impact on the financial statements: a. cost principle b.…
A: Financial statements are written records that present the business activities and the financial…
Q: What is the difference between operating and non –operating income?
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: lationship between Income Measurement and Asset Valuation
A: Profit or loss calculation is a simplified form of income measurement. Income is defined by an…
Q: How does EVA differ from accounting net income?
A: Economic Value Added and accounting net income are the methods of businesses that can be used to…
Q: Where is net profit shown in balance sheet?
A: The profit of a corporation is referred to as net profits.
Q: what is the revenue and gross profit
A: Revenue is the amount or income which has been earned during particular period of time. Gross profit…
What is the Operating Income?
Step by step
Solved in 2 steps
- 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.Recording Various Liabilities Glenview Hardware had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $30,000. ( Note: Assume a periodic inventory system.) b. Year-end wages of $10,000 were incurred, but not paid. Related federal income taxes of $1,200, Social Security of $620 (employee portion), and Medicare taxes of $145 were with-held from employees. c. Year-end estimated income taxes payable, but unpaid, for the year were $42,850. d. Sold merchandise on account for $1,262, including state sales taxes of S48. ( Note: Assume a periodic inventory system.) e. Employers share of Social Security and Medicare taxes for the period were $620 and $145, respectively. f. Borrowed cash under a 90-day, 9%, $25,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).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?
- Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance: Additional data: 1. Seven thousand shares of common stock have been outstanding the entire year. 2. The income tax rate is 30% on all items of income. Required: 1. Prepare a 2019 multiple-step income statement. 2. Prepare a 2019 single-step income statement. 3. Prepare a 2019 statement of comprehensive income.The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
- Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Days’ sale in receivableThe 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.Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
- Recording Various Liabilities Plymouth Electronics had the following transactions that produced liabilities during 2020: a. Purchased merchandise on credit for $80,000. ( Note: Assume a periodic inventory system.) Year-end wages of $40,000 were incurred, but not paid. Related federal income taxes of $13,000 and Medicare taxes of $580 were withheld. Employee wages are all above the Social Security maximum, so only Medicare was paid. b. Year-end estimated income taxes payable, but unpaid, for the year were $113,615. c. Sold merchandise on account for $3,636, including state sales taxes of $180. ( Note: Assume a periodic inventory system.) d. Employers share of Medicare taxes for the period was $580. The taxes will be paid at a later date. e. Borrowed cash under a 180-day, 8%, $155,000 note. Required: Prepare the entry to record each of these transactions (treat each transaction independently).Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?Refer to RE22-2. Assume the pretax cumulative effect adjustment is 50,000. Prepare the journal entry that Heller Company would make at the beginning of 2020 to record the cumulative effect of the change from LIFO to FIFO. 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.