Concept explainers
(1)
Income statement:
Income statement is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned and expenses incurred by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a
Single-step income statement:
Single-step income statement is a format in which a single subtotal of all revenue items are listed in one column and a single subtotal of all expense items including cost of goods sold are listed in another column. Thus, the subtotal of all expense items are deducted from the subtotal of all revenue items to arrive at the net income at the bottom of the statement.
Multi-step income statement:
Multi-step income statement is a type of income statement that reports a sequence of intermediary steps or subtotals such as gross profit, operating income and income which is derived before deducting the taxes.
To identify: whether the income statement is presented in the single-step or multi-step format.
(2)
To calculate: Company SW approximate income tax rate.
(3)
To calculate: the percentage of net income relative to net sales.
Want to see the full answer?
Check out a sample textbook solutionChapter 4 Solutions
INTERMEDIATE ACCOUNTING
- ease PROBLEM 17-15 Effects of Transactions on Various Financial Ratios [LO2, LO3. L0 your choice. In all cases, assume that the current assets exceed current liabilities both before and the effect in terms of increase, decrease, or no effect on the ratio involved, and give the reason for Indicate the effect that each transaction or event would have on the ratio listed opposite to it. State In the right-hand column below, certain financial ratios are listed. To the left of each ratio is a business transaction or event relating to the operating activities of Graham Company. Business Transaction or Event Ratio Debt-to-equity ratio Earnings per share Acid-test ratio 1. Inventory was sold for cash at a profit. 2. Land was purchased for cash. 3. Inventory was sold on account at cost. 4. Some accounts payable were paid off. 5. A customer paid an overdue bill. 6. A cash dividend was declared, but not yet paid. 7. A previously declared cash dividend was paid. 8. The company's common stock price…arrow_forward23 Net income may be based on estimates. true or Falsearrow_forwardChapter 12 discusses revenue per employee ratio. What does this ratio measure? What is the formula for calculating it?arrow_forward
- 3:56 1 Photos QUESTION 11 As sales increase, a firm needs to proportionately to support the O A. increase the level of fixed assets; increase the level of inventory O B. increase the level of inventory; higher sales level OC. increase the level of inventory; increase the level of fixed assets O D. None of the abovearrow_forwardWhat is the company's current ratio?A. 2.07B. 1.38C. 1.41 D. 1.79arrow_forwardii The net profit after tax percentage iv The Earning Per Share v The Price Earning ratio b) Discuss briefly the trends revealed by the above ratios.arrow_forward
- 4 Please answer comparative common income statements based on data i provided.arrow_forwardn 13 h/w 6 ts https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fne... eBook Print erences Revenue: Net sales Dividend income Interest income Gain on sales of marketable securities Total revenue and gains Costs and expenses: Cost of goods sold Operating expenses Interest expense Income tax expense Total costs and expenses Net income Question 6 - Ch 13 h/w - Connect TREECE, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2021. Selected account balances: Saved ✪ Help Save & Exit Submit Check my workarrow_forwardDiscuss the different part of SAGE 50 Peachtree A.payables B.receivable C.inventory D.payrollarrow_forward
- Safari 4:23 PM Tue Jan 30 22 23 24 25 26 27 28 29 HW Set 1 (Ch 2 and 3) Template 1 2 3 4 Total net sales 5 Operating expenses: 6 Cost of sales 7 Fulfillment 8 Marketing Expense 9 Technology and content 10 11 12 13 14 15 16 17 18 19 20 Equity-method investment activity, net of tax 21 Net income 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Calibri (Body) fx Require more detailed information but will initially classify as related to operating activities General and administrative Other operating expense, net Total operating expenses Operating income (loss) Interest income Interest expense Other income (expense), net Total non-operating income (expense) Income before income taxes Provision for income taxes 11 E 2.16 Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions A E 2.17 Home Insert Draw Page Layout E 3.15 BIU Consolidated Statements of Comprehensive Income - USD ($) $ in Millions Statement of Comprehensive Income [Abstract] Net income Other…arrow_forwardEC 3 Question 2 Please help find units required for target op incomearrow_forwardproblem #3 rules for the distribution of profits or lossesarrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningFinancial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Accounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage LearningFinancial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning