The following data were adapted from a recent income statement of The Bluth Company: (in millions) Sales $294,260 Operating costs: Cost of products sold $(141,240) Marketing, administrative, and other expenses (94,160) Total operating costs $(235,400) Operating income $58,860 Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold $79,450 Marketing, administrative, and other expenses 38,250

The following data were adapted from a recent income statement of The Bluth Company: (in millions) Sales $294,260 Operating costs: Cost of products sold $(141,240) Marketing, administrative, and other expenses (94,160) Total operating costs $(235,400) Operating income $58,860 Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold $79,450 Marketing, administrative, and other expenses 38,250

Name: The following data were adapted from a recent income statement of The
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Description: The following data were adapted from a recent income statement of The Bluth Company:(in millions)Sales$294,260Operating costs:Cost of products sold$(141,240)Marketing, administrative, and other expenses(94,160)Total operating costs$(235,400)Operatin

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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The following data were adapted from a recent income statement of The Bluth Company: (in millions) Sales $205,290 Operating costs: Cost of products sold $(98,540) Marketing, administrative, and other expenses (65,690) Total operating costs $(164,230) Operating income $41,060 Assume that the variable amount of each category of operating costs is as follows: (in millions) Cost of products sold $55,430 Marketing, administrative, and other expenses 26,690 a. Based on the data given, prepare a variable costing income statement for Bluth, assuming that the company maintained constant inventory levels during the period.
The following data were adapted from a recent income statement of Ansara Company for the year ended December 31: (in millions) Sales $18,840 Cost of goods sold $(16,010) Selling, administrative, and other expenses (1,700) Total expenses $(17,710) Operating income $1,130 Assume that $4,140 million of cost of goods sold and $940 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Beginning inventory $2,260 Ending inventory $2,640 Also, assume that 40% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Ansara Company. Round numbers to nearest million.
Pollux Company had the following income statement for last year Sales-$360,000 Less: Cost of goods sold-$195,000 Gross margin-$165,000 Less: Selling & administration expense-$78,600 Operating income- $86,400 Beginning assets were $565,000 and ending assets were $597, 000. Carry computations out to three decimals places A. What are average operating assets? B. what is margin? C. what is turnover? D. What is ROI?
The following data were adapted from a recent income statement of Procter & Gamble Company: 1 (in millions) 2 Sales $86,218.00 3 Operating costs: 4 Cost of products sold $43,226.00 5 Marketing, administrative, and other expenses 30,484.00 6 Total operating costs $73,710.00 7 Income from operations $12,508.00 Assume that the variable amount of each category of operating costs is as follows: 1 (in millions) 2 Cost of products sold $23,790.00 3 Marketing, administrative, and other expenses 12,205.00 Required: a. Based on the data given, prepare a variable costing income statement for Procter & Gamble Company, assuming that the company maintained constant inventory levels during the period. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is…
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues $ 34,400 Cost of goods sold ($5,500 + $2.10/unit) 21,250 Gross profit $ 13,150 Operating expenses: Selling ($1,160 + $0.11/unit) 1,985 Administration ($3,900 + $0.20/unit) 5,400 Operating income $ 5,765 Required: Prepare an income statement in the contribution margin format. Calculate the contribution margin per unit and the contribution margin ratio. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to (a. 11,250 units and b. 3,750 units.) Refer to your answer to part a for total revenues of $34,400. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues (a. Increase by $14,000 and b. Decrease by $3,000.)
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues $ 34,400 Cost of goods sold ($5,500 + $2.10/unit) 21,250 Gross profit $ 13,150 Operating expenses: Selling ($1,160 + $0.11/unit) 1,985 Administration ($3,900 + $0.20/unit) 5,400 Operating income $ 5,765 Total revenues of $34,400. Calculate the firm’s operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues Increase by $14,000. Decrease by $3,000.
The following information is available for Wade Corp.: Sales $550,000 Total fixed expenses $150,000 Cost of goods sold 390,000 Total variable expenses 360,000 A CVP income statement would report gross profit of $160,000. contribution margin of $400,000. gross profit of $190,000. contribution margin of $190,000.
Shown here is an income statement in the traditional format for a firm with a sales volume of 17,500 units: Revenues $ 175,500 Cost of goods sold ($11,500 + $2.95/unit) 69,025 Gross profit $ 106,475 Operating expenses: Selling ($2,000 + $1.20/unit) 25,400 Administration ($5,250 + $0.45/unit) 14,025 Operating income $ 67,050 Required: a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Variable expenses: Total variable expenses 0 0 Fixed expenses: Total fixed expenses 0 $0 b. Calculate the contribution margin per unit and the contribution margin ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.) c|. Calculate the firm's operating income (or loss) if the volume changed from 19,500 units to 1. 24,500 units. 2. 11,500 units. d. Refer to your answer to part a when total revenues were $175,500. Calculate the firm's operating income (or loss) if unit selling price and variable expense…
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The following operating income data about the performance of the two product lines: Sales revenue. Cost of goods sold: Variable.. Fixed... Total cost of goods sold. Gross profit.. Marketing and administrative expenses: Variable.. Fixed.. Total marketing and administrative expenses Operating income (loss).... Product Line Industrial Systems $330,000 Household Systems Total $360,000 $690,000 $ 35,000 $44,000 $79,000 250,000 67,000 317,000 $285,000 $ 45,000 Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall $111,000 $396,000 $249,000 $294,000 62,000 39,000 $101,000 $99,000 $200,000 $ (56,000) $150,000 $94,000 76,000 138,000 23,000 62,000 The product line is losing money so with a commission study it will determine whether the company should discontinue the product line. Company accountants estimate that discontinuing, will decrease fixed cost of goods sold by $81,000 and decrease fixed marketing and administrative expenses by $14,000. Production engineers believe that…
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) (2.0) Income before income tax expense $200,000 3.0 % Income tax expense (80,000) (2.0) Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $2,740,000 100 % Cost of goods sold 1,753,600 69 Gross profit $986,400 31 % Selling expenses $602,800 18 % Administrative expenses 219,200 7 Total operating expenses $822,000 25 % Operating income $164,400 6 % Other revenue 54,800 2 $219,200 8 % Other expense 27,400 1 Income before income tax $191,800 7 % Income tax expense 82,200 5 Net income $109,600 2 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive…