ABC LCC sells its products on a gross profit of 20% on sales. The following information Is extracted from its annual accounts for the year ended 31st March 2020. Sales (3months credit) Raw materials Wages (15 days in arrears) Manufacturing expenses (one month in arrears) Administration expenses (one month in arrears) Amount $ 40,00,000 12,00,000 9,60,000 12,00,000 480.000
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- MN Plc's revenue as shown in its draft statement of profit or loss for the year ended 31 December 20X9 is GHS27m. This includes: (i) GHS8m for a consignment of goods sold on 31 December 20X9 on which MN Plc will incur ongoing service and support costs for two years after the sale. The cost of providing service and support is estimated at GHS800,000 per annum. MN Plc applies a 30% mark-up to all service costs. (ii) GHS4m collected on behalf of Aintree. MN Plc acts as an agent for Aintree and receives a 10% commission on all sales. At what amount should revenue be shown in the statement of profit or loss of MN Plc for the year ended 31 December 20X9? (Ignore the time value of money.) A. GHS22,920,000 B. GHS21,800,000 C. GHS20,520,000 D. GHS21,320,000The following information was taken from the financial statements of Sunland Company: 2021 2020 Gross profit on sales $678,600 $760,000 Income before income taxes 205,400 225,000 Net income 260,000 225,000 Net income as a percentage of net sales 10% 9% Please show steps to finding answer Compute the cost of goods sold in dollars and as a percentage of net sales for each year. (Round percentages to 1 decimal place, e.g. 15.2%) 2021 2020 Cost of goods sold in dollars $enter a dollar amount $enter a dollar amount Cost of goods sold as a percentage of net sales nter percentages rounded to 1 decimal place % nter percentages rounded to 1 decimal place %The following are the financial statement JNC Ltd. for the year ended 31 March 2020: JNC Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 JNC Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…
- Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2021 2020 Sales revenue $ 4,450,000 $ 3,550,000 Cost of goods sold 2,870,000 2,010,000 Administrative expense 810,000 685,000 Selling expense 370,000 312,000 Interest revenue 151,000 141,000 Interest expense 202,000 202,000 Loss on sale of assets of discontinued component 52,000 — On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $52,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2021–9/30/2021 2020 Sales revenue $ 410,000 $ 510,000 Cost of goods sold (295,000 ) (326,000 ) Administrative expense (51,000 ) (41,000 )…Oro Company began operations on January 1, 2021 and appropriately uses the installment sales method of accounting. The following data are available for 2020 and 2021: 2020 2021 Installment sales 1,500,000 1,800,000 Gross profit on sales 30% 40% Cash collections from: 2020 sales 500,000 600,000 2021 sales 700,000 The realized gross profit for 2021 is: 720,000 520,000 460,000 280,000ABC Company has the following information for the year ended December 31, 2022: Sales revenue: $1,500,000 Cost of goods sold: $800,000 Operating expenses: $300,000 Interest expense: $50,000 Income tax rate: 30% Calculate the net income for ABC Company for the year ended December 31, 2022.
- Partial income statements for Sherwood Company summarized for a four-year period show the following: 2018 2019 2020 2021 $ 2,900,000 1,508,000 $ 3,300,000 1,683,000 $ 3,400,000 1,802,000 $ 1,598,000 $ 3,900,000 2,028,000 $ 1,872,000 Net Sales Cost of Goods Sold Gross Profit $ 1,392,000 $ 1,617,000 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $23,600. The inventory balance on December 31, 2020, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory…Aston Company reported the following balances at September 30, 2020:Sales Revenue $280,000Sales Returns and Allowances 13,000Sales Discounts 5,000Cost of Goods Sold 160,500Calculate the Net sales for the month.From the following information, calculate Operating ratios and operating profit ratio and net profit ratio of "E" company for two years: Particulars 2019 2020 Sales 15.00.000 20.00.000 Cost of Goods Sold 7.50.000 9.00.000 Administrative Expenses 1.00.000 1.50,000 Šales Expense 2,50.000 3.00,000 Depreciation 1.00,000 1,00,000 Financial Expenses 1.00,000 1,00.000 Income of Interest-Dividend 2.00.000 2,00.000 Other expense (Non-Operating) 50,000 50.000
- Zack Corp. had the following information for 2019: Sales $500,000Operating income 50,000Operating assets 200,000Imputed interest rate 10% What amount of residual income did Zack have?Blue Company reported the following information in its financial statements. Blue Company (FIFO) $millions Sales COGS Inventories 2021 $60,000 $45,000 $15,000 2020 52,000 36,000 13,000 The LIFO reserve for Blue Company is $2,760 at the end of 2020 and $2,500 at the end of 2021.What is the 2021 gross profit for Blue Company, assuming Blue Company had used LIFO? Select one: a. $14,740 b. $15,740 c. $14,260 d. $15,000 e. $15,260Presented below is information for Chivu Company for the month of March 2020: Cost of goods sold s50,000 Salaries and wages Expense S8,000 Sales Revenue Freight-out 7.000 as0,000 Sales Returns and Allowances interest Expense 4,000 3,000 Required: Prepare a multiple-step income statement for the month of March by completing the following Salaries and wages Expense Operating Expense Total Operating Expense