Financial Accounting (5th Edition) (What's New in Accounting)
5th Edition
ISBN: 9780134727790
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Question
Chapter 11, Problem 11SE
To determine
Compute the amount of fixed asset acquired by I Medical Supply Incorporation
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E12-24B Vertical analysis (Learning Objective 2) 15-20 min.
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Comparative Income Statement
Years Ended December 31, 2018 and 2017
Revenue
Expenses:
Cost of Goods Sold
Selling and General Expenses
Interest Expense
Income Tax Expense
Total Expenses
Net Income
2018
$500,000
$245,000
111,000
10,000
54,700
420,700
$ 79,300
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Preparation of SCI for a Merchandising Business Using the Multistep Approach
Instructions:
Prepare a Statement of Comprehensive Income for the year ended December 31,2020 the using the following account titles listed.
Cost of Sales ₱2,675,000
Depreciation expense ₱105,000
Rent expense ₱240,000
Salaries expense ₱360,000
Sales Discount ₱826,500
Sales Returns and Allowances ₱275,500
Sales ₱5,510,000
Supplies expense ₱540,000
Taxes ₱92,400
Utilities expense ₱180,000
Activity # 1
Presented below are the income statement accounts for Troops Store. Prepare a
multi-step statement of comprehensive income for Troops Store for year ended
December 31, 2019.
Sales Return and Allowances
Php 10,000.00
Officer's Salaries
40,000.00
Depreciation- Building
10,000.00
Advertising
30,000.00
Other expenses
1,000.00
Sales Discounts
5,000.00
Cost of Goods Sold
275,000.00
Interest Expense
4,000.00
Transportation and Travel
10,000.00
Depreciation- Delivery Truck
5,000.00
Sales
400,000.00
Insurance
10,000.00
Rent
20,000.00
Sales Salaries
20,000.00
Questions:
1. For company above, compute return on sales (Net Income/ Net Sales) and
comment on the results.
Return on sales:
2. Does a low return on sales indicate a weak company ? (Y/N). Explain your answer.
3. Do greater Net sales always result in greater net income? (Y/N) Why?
4. Examine the financial information above and comment on one item that you find
interesting.
Holistic Rubrics for Essay:
Quality of Writing-20%…
Chapter 11 Solutions
Financial Accounting (5th Edition) (What's New in Accounting)
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - A company issued bonds during the year. Would this...Ch. 11 - Prob. 5DQCh. 11 - When using the indirect method, why are gains on...Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Prob. 1SCCh. 11 - Operating activities are most closely related to:...Ch. 11 - Prob. 3SCCh. 11 - Prob. 4SCCh. 11 - Finlay, Inc., earned net income of 63,000 after...Ch. 11 - Prob. 6SCCh. 11 - Prob. 7SCCh. 11 - Prob. 8SCCh. 11 - Prob. 9SCCh. 11 - Elliot Enterprises had operating expenses of...Ch. 11 - Prob. 11SCCh. 11 - Prob. 12SCCh. 11 - Prob. 1SECh. 11 - Prob. 2SECh. 11 - Prob. 3SECh. 11 - Prob. 4SECh. 11 - Prob. 5SECh. 11 - Prob. 6SECh. 11 - Operating activitiesindirect method (Learning...Ch. 11 - Prob. 8SECh. 11 - Operating activitiesdirect method (Learning...Ch. 11 - Prob. 10SECh. 11 - Prob. 11SECh. 11 - Prob. 12SECh. 11 - Prob. 13AECh. 11 - Prob. 14AECh. 11 - Prob. 15AECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 17AECh. 11 - Prob. 18AECh. 11 - Prob. 19AECh. 11 - Prob. 20AECh. 11 - Prob. 21AECh. 11 - Prob. 22BECh. 11 - Prob. 23BECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 25BECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Prob. 28BECh. 11 - Prob. 29BECh. 11 - Calculating certain information using the direct...Ch. 11 - Prob. 31APCh. 11 - Prob. 32APCh. 11 - Prob. 33APCh. 11 - Prob. 34APCh. 11 - Prob. 35APCh. 11 - Prob. 36APCh. 11 - Prob. 37BPCh. 11 - Prob. 38BPCh. 11 - Prob. 39BPCh. 11 - Prob. 40BPCh. 11 - Prob. 41BPCh. 11 - Prob. 42BPCh. 11 - Prob. 1CECh. 11 - Prob. 1CPCh. 11 - Apply Your Knowledge Ethics In Action Case 1....Ch. 11 - Case 2. Kevin Sailors, the CEO of Candle...Ch. 11 - Financial Analysis Purpose: To help to familiarize...Ch. 11 - Prob. 1IACh. 11 - Small Business Analysis Purpose: To help you...Ch. 11 - Written Communication Prepare a paper outlining...Ch. 11 - Comprehensive Problem The Accounting Cycle and...
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How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License