Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income Gross profit Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 320 Depreciation expense 17,000 Net income/(loss) Cost of goods sold 118,440 Selling expense 1,260 Total expenses Marketing costs (uncontrollable) 790 Administrative expense 690 Income tax expense (21% of pretax income) Other expenses 330 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Total Expenses B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin Return on investment Residual income
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income Gross profit Allocated costs (uncontrollable) $2,040 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 320 Depreciation expense 17,000 Net income/(loss) Cost of goods sold 118,440 Selling expense 1,260 Total expenses Marketing costs (uncontrollable) 790 Administrative expense 690 Income tax expense (21% of pretax income) Other expenses 330 A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Total Expenses B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin Return on investment Residual income
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 5PA: Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an...
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