3 Bset Exercise Worksheet
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Exercise 3.7B a) prepare a mulit-step income statement b) TABEL SHOE CO INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 F
Net sales 2,940,000 Revenues Cost of Goods Sold 1,488,000 Net sale
Gross Profit 1,452,000 Rent rev
Operating Expenses: Selling expenses Wages and salaries 344,400 Expenses Materials and supplies 52,800 Cost of g
Depreciation expense 136,500 533,700 Selling e
Administrative expenses: Adminis
Wages and salaries 407,700 Interest
Depreciation expense 58,500 Other administrative expen 155,100 621,300 1,155,000 Income from Operations 297,000 Income be
Other Revenues and Gains Income Rental revenue 87,000 Net Income
Other Expenses and Losses Interest expense 54,000 33,000 Earnings pe
Income before income tax 330,000 Income tax 112,200 Net income 217,800 Earnings pe 10.89
prepare a single-step income statement TABEL SHOE CO INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 es 2,940,000 venue 87,000 Total revenues 3,027,000 goods sold 1,488,000 expenses 533,700 strative expenses 621,300 t expense 54,000 Total expenses 2,697,000 fore taxes 330,000 taxes 112,200 e 217,800 er share 10.89
Exercise 3.12B a) prepare a 2025 retained earnings statement for Jason Woo Corporation JASON WOO CORPORATION RETAINED EARNINGS STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2025 Balance, January 1, as reported 900,000 Cumulative effect of change in inventory methods (112,000)
Correction for depreciation error (80,000)
Balance, January 1, as adjusted 708,000 Add: Net Income 768,000 1,476,000 Deduct: Dividends declared 400,000 Balance, December 31 1,076,000 b) What would Woo report as total retained earnings on its balance sheet in 2025? Retained earnings: Appropriated 280,000 Unappropriated 796,000 1,076,000
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Related Questions
27
A1 CORPORATION, INC.
Income Statement
For the Year Ended December 31,
2026
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Net Income
Using vertical analysis, what percentage is assigned to cost of goods sold?
OA) 37.5%
B) 100%
OC) 62.5%
$240
150
90
65
$25
D) 50%
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A company reported the following data for the year ending 2018:
Description
Amount
Sales
Sales discount
Sales returns and allowances
$400,000
$16,000
$13,000
$117,000
$153,000
|Cost of goods sold
|Operating expense
Income tax expense
$23,750
Compute the amount of gross profit to be reported on the income statement.
a. $101,000
b. $117,000
c. $254,000
d. $124,750
Answer
O O O O
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Problem 13-02A (Video)
The comparative statements of Cullumber Company are presented here:
Cullumber CompanyIncome StatementsFor the Years Ended December 31
2020
2019
Net sales
$1,891,640
$1,751,600
Cost of goods sold
1,059,640
1,007,100
Gross profit
832,000
744,500
Selling and administrative expenses
501,100
480,100
Income from operations
330,900
264,400
Other expenses and losses
Interest expense
23,700
21,700
Income before income taxes
307,200
242,700
Income tax expense
93,700
74,700
Net income
$213,500
$168,000
Cullumber CompanyBalance SheetsDecember 31
Assets
2020
2019
Current assets
Cash
$60,100
$64,200
Debt investments (short-term)
74,000
50,000
Accounts receivable
118,900
103,900
Inventory
127,700
117,200
Total current assets
380,700
335,300
Plant assets (net)…
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View Policies
Current Attempt in Progress
Assume Sunland Company has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000,
Cost of goods sold $649.599, and Operating expenses $215,600.
(a) Compute net sales.
Net sales $
(b) Compute gross profit.
Gross profit S
(c) Compute income from operations.
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Required information
For Year Ended December 31
Sales
Cost of goods sold
Other operating expenses
Current Year
$ 411, 225
209,550
12, 100
9,525
$ 673,500
642, 400
$31,100
$ 1.90
:. -. - == .......
9 US
Sa
M
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Question
The income statement of Cheyenne Company is shown below.
CHEYENNE COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue
$6,890,000
Cost of goods sold
Beginning inventory
$1,910,000
Purchases
4,410,000
Goods available for sale
6,320,000
Ending inventory
1,620,000
Cost of goods sold
4,700,000
Gross profit
2,190,000
Operating expenses
Selling expenses
460,000
Administrative expenses
700,000
1,160,000
Net income
$1,030,000
Additional information:
1.
Accounts receivable decreased $350,000 during the year.
2.
Prepaid expenses increased $160,000 during the year.
3.
Accounts payable to suppliers of merchandise decreased $300,000 during the year.
4.
Accrued expenses payable decreased $90,000 during the year.
5.
Administrative expenses include depreciation expense of…
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Data for Micatin Designs, Inc. follow:
Data table
Micatin Designs, Inc.
Comparative Income Statement
Years Ended December 31, 2024 and 2023
2024
2023
Net Sales Revenue
$429,000
$374,000
Expenses:
Cost of Goods Sold
201,000
187,000
Selling and Administrative Expenses
97,450
92,750
Other Expenses
8,500
3,250
Total Expenses
306,950
283,000
Net Income
$122,050
$91,000
.
Requirements
1.
Prepare a comparative common-size income statement for
Micatin
Designs, Inc. using the
2024
and
2023
data. Round percentages to one-tenth percent.
2.
To an investor, how does
2024
compare with
2023?
Explain your reasoning.
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Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023
INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000
Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000
Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000
EQUITY AND LIABILITIESEquity 3 760 000
Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000
Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000
B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2022 and 2023
2023
2022
Gross sales
$ 19,000
$ 15,000
Sales returns and allowances
1,000
100
Net sales
$ 18,000
$ 14,900
Cost of merchandise (goods) sold
12,000
9,000
Gross profit
$ 6,000
$ 5,900
Operating expenses:
Depreciation
$ 700
$ 600
Selling and administrative
2,200
2,000
Research
550
500
Miscellaneous
360
300
Total operating expenses
$ 3,810
$ 3,400
Income before interest and taxes
$ 2,190
$ 2,500
Interest expense
560
500
Income before taxes
$ 1,630
$ 2,000
Provision for taxes
640
800
Net income
$ 990
$ 1,200
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2022 and 2023
2023
2022
Assets
Current assets:
Cash
$ 12,000
$ 9,000
Accounts receivable
16,500
12,500
Merchandise inventory
8,500
14,000
Prepaid expenses
24,000
10,000
Total current assets
$ 61,000
$ 45,500
Plant and equipment:
Building (net)
$ 14,500
$…
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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2022 and 2023
2023
2022
Gross sales
$ 19,000
$ 15,000
Sales returns and allowances
1,000
100
Net sales
$ 18,000
$ 14,900
Cost of merchandise (goods) sold
12,000
9,000
Gross profit
$ 6,000
$ 5,900
Operating expenses:
Depreciation
$ 700
$ 600
Selling and administrative
2,200
2,000
Research
550
500
Miscellaneous
360
300
Total operating expenses
$ 3,810
$ 3,400
Income before interest and taxes
$ 2,190
$ 2,500
Interest expense
560
500
Income before taxes
$ 1,630
$ 2,000
Provision for taxes
640
800
Net income
$ 990
$ 1,200
Current assets:
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2022 and 2023
2023
2022
Assets
Cash
$ 12,000
$ 9,000
Accounts receivable
16,500
12,500
Merchandise inventory
8,500
14,000
Prepaid expenses
24,000
10,000
Total current assets
$ 61,000
$ 45,500
Plant and equipment:
Building (net)
$ 14,500
$…
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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2022 and 2023
2023
2022
Gross sales
$ 19,000
$ 15,000
Sales returns and allowances
1,000
100
Net sales
$ 18,000
$ 14,900
Cost of merchandise (goods) sold
12,000
9,000
Gross profit
$ 6,000
$ 5,900
Operating expenses:
Depreciation
$ 700
$ 600
Selling and administrative
2,200
2,000
Research
550
500
Miscellaneous
360
300
Total operating expenses
$ 3,810
$ 3,400
Income before interest and taxes
$ 2,190
$ 2,500
Interest expense
560
500
Income before taxes
$ 1,630
$ 2,000
Provision for taxes
640
800
Net income
$ 990
$ 1,200
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2022 and 2023
2023
2022
Assets
Current assets:
Cash
$ 12,000
$ 9,000
Accounts receivable
16,500
12,500
Merchandise inventory
8,500
14,000
Prepaid expenses
24,000
10,000
Total current assets
$ 61,000
$ 45,500
Plant and equipment:
Building (net)
$ 14,500
$…
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LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2022 and 2023
2023
2022
Gross sales
$ 19,000
$ 15,000
Sales returns and allowances
1,000
100
Net sales
$ 18,000
$ 14,900
Cost of merchandise (goods) sold
12,000
9,000
Gross profit
$ 6,000
$ 5,900
Operating expenses:
Depreciation
$ 700
$ 600
Selling and administrative
2,200
2,000
Research
550
500
Miscellaneous
360
300
Total operating expenses
$ 3,810
$ 3,400
Income before interest and taxes
$ 2,190
$ 2,500
Interest expense
560
500
Income before taxes
$ 1,630
$ 2,000
Provision for taxes
640
800
Net income
$ 990
$ 1,200
LOGIC COMPANY
Comparative Balance Sheet
December 31, 2022 and 2023
2023
2022
Assets
Current assets:
Cash
$ 12,000
$ 9,000
Accounts receivable
16,500
12,500
Merchandise inventory
8,500
14,000
Prepaid expenses
24,000
10,000
Total current assets
$ 61,000
$ 45,500
Plant and equipment:
Building (net)
$ 14,500
$…
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KORBIN COMPANY
Comparative Income Statements
For Years Ended December 31, 2019, 2018, and 2017
2019
2018
2017
Sales
$
459,716
$
352,180
$
244,400
Cost of goods sold
276,749
223,282
156,416
Gross profit
182,967
128,898
87,984
Selling expenses
65,280
48,601
32,261
Administrative expenses
41,374
30,992
20,285
Total expenses
106,654
79,593
52,546
Income before taxes
76,313
49,305
35,438
Income tax expense
14,194
10,108
7,194
Net income
$
62,119
$
39,197
$
28,244
KORBIN COMPANY
Comparative Balance Sheets
December 31, 2019, 2018, and 2017
2019
2018
2017
Assets
Current assets
$
58,718
$
39,300
$
52,535
Long-term investments
0
500
4,280
Plant assets, net
109,047
99,561
58,646
Total assets
$
167,765
$
139,361
$
115,461
Liabilities and Equity
Current liabilities
$
24,494…
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Activity 6: TJ's Bakes
Based
on
the financial information of TJ's Bakes
from
its Statement of
Comprehensive Income, compute for Profitability Ratio and interpret the result:
P 238,000
84,000
Net Sales
Cost of goods sold
Operating Expenses
Interest expense
39,800.00
3,500.00
Income tax expense
5,600.00
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WINDSOR, INC.Income StatementFor the Year Ended December 31, 2023
Net Sales
$340
Cost of Goods Sold
238
Gross Profit
102
Operating Expenses
40
Net Income
$ 62
Using vertical analysis, what percentage is assigned to gross profit?
100%
70.0%
42.9%
30.0%
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Sales Revenue
$983,000
Cost of Goods Sold 489,000
Operating Expenses 243,000
Use this information to construct an income statement for the year 2019.
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Sales
Cost of goods sold
Sales returns and allowances
Operating expenses:
Thompson's Company
Income Statement
For the Month Ended August 31, 2021
Net income
$
6,700
1,100
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salamagundi, inc. has the following income statement:
For the year ended December 31, 2021
net sales: $160
Cost of goods sold: $100
gross profit: $60
Operating expenses: $40
Net income: $20
Using vertical analysis, what percentage is assigned to operating expenses?
a. 25%
b. 40%
c. 66.7%
d. 200%
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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
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PINA COLADA CORPORATION
Comparative Income Statements
For the Years Ended December 31
Net sales
Cost of goods sold
Gross profit
Operating expenses
Net income
December 31, 2022
$766,000
493,000
273,000
144,000
$129,000
December 31, 2021
$470,000
303,000
167,000
122,000
$45.000
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Mc
Graw
PEACH COMPUTER
Income Statement
For the year ended December 31, 2024
Net sales
Expenses:
Cost of goods sold
Operating expenses
Depreciation expense
Income tax expense
Total expenses
Net income
Cash
Accounts receivable.
Inventory
Prepaid rent
Accounts payable
Income tax payable
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2024
$96,000
46,600
69,000
2,400
39,000
4,400
$990,000
500,000
44,000
34,000
Cash Slows from operating activities
Cash received from customers
Cash paid to suppliers
Cash paid for operating expenses
Cash paid for income taxes
Depreciation expense
2023
$82,000
$2,000
52,000
3,000
34,000
7,000
PEACH COMPUTER
Statement of Cash Flows (partial)
For the Year Ended December 31, 2024
Net cash flows from operating activities
$1,650,000
1,568,000
$82,000
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method (Amounts to be
deducted should be indicated with a minus sign.)
Increase (1) or…
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Assignment
COMPARATIVE STATEMENTS
Sikat Manufacturing Corporation
Income Statement
For the year ended Dec. 31, 2020 and 202019
2020
2019
P 5,150,000
-150,000
5,000,000
3,200,000
1,800,000
Sales
4,250,000
na 250.000
4,000,000
2.600,000
1,400,000
Less: Sales Returns and Allowances
Net Sales
Less: Cost of Sales
Gross Profit
Less: Operating Expenses
Selling Expenses
General and Administrative Expenses
Total Operating Expenses
Operating Income
Less: Interest expense
Net Income before tax
Less: Income tax.(32% )
Net Income
720,000
780,000
1,500,000
300,000
60,000
240,000
76,800
P 163.200
600,000
600,000
1,200,000
200,000
40,000
160,000
51,200
P 108,800
Sikat Manufacturing Corporation
Balance Sheet
Dec. 31, 2020 and 2019
2020
2019
ASSETS
P 225,000
150,000
240,000
260,000
120,000
150,000
70,000
550,000
P1.765.000 P 1,520,000
Cash
P140.000
125,000
180,000
160,000
145,000
170,000
80,000
520,000
Marketable Securities
Accounts Receivable
Inventories: Finished Goods
Work-in-Process
Raw Materials…
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QUESTION 3
INTERPRETATION OF FINANCIAL INFORMATION
You are provided with financial indicators of Mashonisa Traders on 31 August 2018.
The business has a target mark up on cost of 75%
Use the information to answer the questions that follow:
N.B: In answering the questions quote relevant Indicators, figures and trends.
1.
INFORMATION
2018
60%
46%
21%
16,1%
27,9%
2017
63%
Gross profit on cost
Gross profit on sales
Operating expenses on sales
Operating profit on sales
Return on owner's equity
Current ratio
50%
18%
19,2%
23%
1,9:1
0,9:1
2,5:1
12%
2,1:1
1:1
3,3.1
12%
Acid test ratio
Solvency ratio
Interest on fixed deposits
REQUIRED:
The owner of Mashonisa Traders is happy about the liquidity position
of the business. Quote TWO relevant financial indicators with figures
to support her opinion.
3.1
The manager is concerned about the mark up % achieved by the
business. Quote ONE relevant indicator to support her concern. And
explain what caused the business not to achieve its targeted mark up.…
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3) Mahogany Company provided the following financial statement for the month of July, 2020. The
store was opened July 1, 2020 and he wanted you to help him in preparing Cash Flow Statement
for the first month of operation. A Statement of Financial Position, Income Statement and Cash
Ledger have shown the information below.
Mahogany Company
Statement of Financial Position
As of December 31, 2020
ASSETS
LIABILITIES AND OWNER'S EQUITY
Current Assets:
Current Liabilities:
Cash
P44,535
Accounts Payable
P8,110
Accounts Receivable
575
Salaries Payable
1,000
Inventories
15,345
Utilities Payable
4,000
Prepaid rent
5,000
P65,455
Unearned Income
1,395
P14,505
Non-current Assets:
Non-current liabilities
Property, Plant & Equipment
Accumulated depreciation
30,000
Long-term Note payable
23,000
500
29,500
Total Liabilities
37,505
Owner's Equity
Mahogany, Capital
57,450
Total Assets
P94,955
Total liabilities & equity
P94,955
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TASK THREЕ:
Income Statement for the year ended 31 December 2020
Edward
Frankie
Company
Company
$
Sales
100,000
80,000
Less:
Cost of goods sold
60,000
50,000
Gross Profit
40,000
30,000
Less:
Expenses
36.000
18,000
Net Profit
4.000
12,000
1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of
the company respectively.
2. Comment the profitability of the two companies.
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ASSESSMENT:
Problem #1: On June 30, 2020, PSA Trading Co. has the following informatign:
revenue from sales is Po8,760; sales return is P35,50o; cost of goods sold is P8.490:
salaries cost P 14,600; rent is P8,090; light and water expenses are P7.550 and
miscellaneous expenses are Po,520.Generate an income statement and find:
a. Gross Profit
b. Net Profit or Loss
Problem #2: AMA 6operative store had the following activities for year ended
2021: gross sales amounting to Po4,653, the cost of goods sold was P48,923, the
operating expensés were, P8,723.15, and refunds for defective goods amounted to
P26,497.15. Generate an income slatemeni and find:
a. Net Sales
b. Gross Profit
c. Net Profit
Problem #3: AMA cooperative store had the following activities for year ended 2021:
gross sales amounting to P94,653, the cost of goods sold was P48,923, the operating
expenses were, P8,723.15, and refunds for defective goods amounted to P26,497.15.
Generate an income statement and find:
a. Net Sales…
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9 -
The income statement of a Business for the period 2019 is as follows:
31.12.2019
%
Gross sales
45.200 TL
102.72
Discounts From Sales
1.200 TL
2.72
Net Sales
44,000 TL
100.00
Cost of sales
12.500 TL
28.41
Gross Profit on Sales
31,500 TL
71.59
This table was prepared according to which of the following analysis methods?
a)
Technical analysis
B)
Analysis with Vertical Percentage Method
NS)
Ratio Analysis
D)
Comparative Tables Analysis
TO)
Trend Percentages Analysis
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SEE MORE QUESTIONS
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Related Questions
- 27 A1 CORPORATION, INC. Income Statement For the Year Ended December 31, 2026 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income Using vertical analysis, what percentage is assigned to cost of goods sold? OA) 37.5% B) 100% OC) 62.5% $240 150 90 65 $25 D) 50%arrow_forwardA company reported the following data for the year ending 2018: Description Amount Sales Sales discount Sales returns and allowances $400,000 $16,000 $13,000 $117,000 $153,000 |Cost of goods sold |Operating expense Income tax expense $23,750 Compute the amount of gross profit to be reported on the income statement. a. $101,000 b. $117,000 c. $254,000 d. $124,750 Answer O O O Oarrow_forwardProblem 13-02A (Video) The comparative statements of Cullumber Company are presented here: Cullumber CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,891,640 $1,751,600 Cost of goods sold 1,059,640 1,007,100 Gross profit 832,000 744,500 Selling and administrative expenses 501,100 480,100 Income from operations 330,900 264,400 Other expenses and losses Interest expense 23,700 21,700 Income before income taxes 307,200 242,700 Income tax expense 93,700 74,700 Net income $213,500 $168,000 Cullumber CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 118,900 103,900 Inventory 127,700 117,200 Total current assets 380,700 335,300 Plant assets (net)…arrow_forward
- View Policies Current Attempt in Progress Assume Sunland Company has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000, Cost of goods sold $649.599, and Operating expenses $215,600. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit S (c) Compute income from operations.arrow_forwardRequired information For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31,100 $ 1.90 :. -. - == ....... 9 US Sa Marrow_forwardQuestion The income statement of Cheyenne Company is shown below. CHEYENNE COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of…arrow_forward
- Data for Micatin Designs, Inc. follow: Data table Micatin Designs, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 2024 2023 Net Sales Revenue $429,000 $374,000 Expenses: Cost of Goods Sold 201,000 187,000 Selling and Administrative Expenses 97,450 92,750 Other Expenses 8,500 3,250 Total Expenses 306,950 283,000 Net Income $122,050 $91,000 . Requirements 1. Prepare a comparative common-size income statement for Micatin Designs, Inc. using the 2024 and 2023 data. Round percentages to one-tenth percent. 2. To an investor, how does 2024 compare with 2023? Explain your reasoning.arrow_forwardPrepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…arrow_forwardLOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 2022 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2022 and 2023 2023 2022 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $…arrow_forward
- LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 2022 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 Current assets: LOGIC COMPANY Comparative Balance Sheet December 31, 2022 and 2023 2023 2022 Assets Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $…arrow_forwardLOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 2022 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2022 and 2023 2023 2022 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $…arrow_forwardLOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 2022 Gross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANY Comparative Balance Sheet December 31, 2022 and 2023 2023 2022 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $…arrow_forward
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