LO 4-6 Exercise 4-13A Multistep income statement In Year 1, Kim Company sold land for $80,000 cash. The land had originally cost $60,000. Also, Kim sold inventory that had cost $110,000 for $198,000 cash. Operating expenses amounted to $36,000. Required a. Prepare a Year 1 multistep income statement for Kim Company. b. Assume that normal operating activities grow evenly by 10 percent during Year 2. Prepare a Year 2 multistep income statement for Kim Company. Page 25 c. Determine the percentage change in net income between Year 1 and Year 2.

LO 4-6 Exercise 4-13A Multistep income statement In Year 1, Kim Company sold land for $80,000 cash. The land had originally cost $60,000. Also, Kim sold inventory that had cost $110,000 for $198,000 cash. Operating expenses amounted to $36,000. Required a. Prepare a Year 1 multistep income statement for Kim Company. b. Assume that normal operating activities grow evenly by 10 percent during Year 2. Prepare a Year 2 multistep income statement for Kim Company. Page 25 c. Determine the percentage change in net income between Year 1 and Year 2.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.8.2MBA: Gross profit percent and markup percent Caterpillar Inc. (CAT) produces and sells various types of...

See similar textbooks

Similar questions

Question 5 Rivertown Stores has total revenue of $285,400, cost of goods sold equal to 68 percent of sales, and a profit margin of 9.2 percent. Net fixed assets are $126,400 and current assets are $65,880. What is the total asset turnover rate? O4.81 1.48 O 1.30 O 1.01 O 1.84
1. Year one income statement by months ( sales by year 3 $2.7m 2.7 m /3 = $900,000 average each year sales 900,000 / 12 = $75,000 sales each month Revenues: Net sales $75,000 each month Expenses and loses Costs of goods sold 1,786 x $15.60 = $27,863.78 Capital expenses $1,150 / 12= $95.83 Location expenses $76,415/ 12 = $6,367.92 Advertising / Promotional expenses $78,285/ 12 = $6,523.75 CalculateTotal expenses Depreciation expense is straight line for this project ?. Use the market value of the asset divided by monthly expected life of the asset, We will not use salvage value in calculating depreciation expense.
estion 4 calculate the net income from the following information: sales $537,000; variable costs $346,800; depreciation $94,500; and tax rate is 21% Ⓒ$75,760 O $75,761 Ⓒ$75,762 $75,763
Assume the following sales data for a company: Year 2 $562,500 Year 1 $450,000 What is the percentage increase in sales from Year 1 to Year 2 (to the nearest whole percent)? O a. 20% O b. 125% О с. 25% O d. 80%
Q Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses $80,000; and Taxes = $300,000. Rogue's operating income is equal to (use an integer number without $ sign, such as $1,234,567⇒ 1234567) Question 25 Tiada
Question 5The Income Statement and additional data of Crawford Properties, Inc., follows:CRAWFORD PROPERTIES Inc.Income StatementFor Year Ended June 30, 20X6Revenues:Sales revenue $237,000Expenses:Cost of goods sold $103,000Salary expense 58,000Depreciation expense 29,000Income taxes expense 9,000 199,000Net Income $38,000Additional data:a) Acquisition of plant assets is $116,000. Of this amount $101,000 is paid in cash and$15,000 by signing a note payable.b) Proceeds from sale of land total $24,000c) Proceeds from issuance of common stock total $30,000d) Payment of long-term note payable is $15,000e) Payment of dividends is $11,000f) From the balance sheet30/6/X 6 30/6/X 5Current Assets:Cash & cash equivalents $27,000 $20,000Accounts receivable 43,000 58,000Inventories 92,000 85,000Current Liabilities:Accounts payable $35,000 $22,000Accrued liabilities 13,000 21,000Required:Prepare Crawford Properties, Inc.’s statement of cash flows for the year ended June 30, 20X6, using the…
Year 4 Year 3 Revenues Net sales Other revenues $211,900 $176, 100 9,100 221,000 6,700 Total revenues 182,800 Expenses Cost of goods sold Selling expenses General and administrative 124, 200 20,100 102, 200 18,100 9,800 8,800 expenses Interest expense Income tax expense 2,000 19,900 176,000 2,000 17, 100 Total expenses 148, 200 Net income $ 45,000 $ 34,600 Assets Current assets Cash Marketable securities Accounts receivable Inventories $ 4,800 $ 6,800 2,700 36,900 101,300 3,800 149,500 138,600 105,500 20,700 $275,700 $244, 100 2,700 31,400 94,900 2,800 Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets 105,500 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable $ 38,100 $ 54,600 15,000 16,400 71,000 53,100 65,000 66,000 Total liabilities 118, 100 137,000 Stockholders' equity Common stock (47,000 shares) Retained earnings Total stockholders' equity 157,600 Total…
Exercise 5-15 me and my The Bellview Corporation, which sells a single commodity, show the following operating results for a 3-year period: Sales Cost of Sales Gross Profit Operating Expenses Net Income 2018 P4,500,000 2,925,000 P1,575,000 1,200,000 P375,000 2019 P6,000,000 4,080,000 P1,920,000 1,400,000 P520,000 2020 P6,200,000 4,216,000 P1,984,000 1,500,000 P484,000 The selling prices of the commodity sold were as follows: in 2018, P22.50; in 2019, P24.00; and in 2020, P25.00. REQUIRED: 1. Prepare a summary of the detailed changes in gross profit for 2019 and 2020 as compared with the year immediately preceding in terms of volume changes and price changes for both sales and costs.
m IV - Chapters 10 & 11 i The balance sheets of Xenon Company reports total assets of $891,000 and $958,000 at the beginning and end of the year, respectively. Sales revenues are $1.7 million, net income is $182,000, and net cash flows from operating activities are $153,000. Cash return on assets Cash flow to sales Asset turnover Required: Calculate the cash return on assets, cash flow to sales, and asset turnover. (Do not round intermediate calculations. Round your final answers to 1 decimal place.) % Saved % times Prev Help #
Sales revenue Orange Corporation has two divisions: Fruit and Flower. The following information for the past year is available for each division: Fruit Division $ 1,320,000 990,000 $ 330,000 $ 5,000,000 Flower Division $1,980,000 1,485,000 $ 495,000 $ 1,980,000 Cost of goods sold and operating expenses Net operating income Average invested assets Orange has established a hurdle rate of 5 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $142,000. The total Investment required is $2,100,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment.
wo years. EXERCISE 15-2 Financial Ratios for Assessing Liquidity LO15-2 ending December 31 appear below. The company did not issue any new common stock during the payable was 12%, the income tax rate was 40%, and the dividend per share of common stock was this year was $18. All of the company’s sales are on account. year Deceof 800,000 shares of common stock were outstanding, The interest rate on the bond year. $0.75 last year and $0.40 this year. The market value of the company's common stock at the end of Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash .... $ 1,280 $ 1,560 Accounts receivable, net 12,300 9,100 Inventory .... 9,700 8,200 Prepaid expenses 1,800 2,100 Total current assets 25,080 20,960 Property and equipment: Land ..... 6,000 6,000 Buildings and equipment, net .. 19,200 19,000 epeA Total property and equipment ... 25,200 25,000 Total assets $50,280 $45,960 Liabilities and Stockholders' Equity Current…
QUESTION 3 ABC Corporation purchases 3,000 units of inventory. Payment to its supplier is $30.00 per unit. In addition, the company pays an import duty of 8 percent and shipping costs of $5,400 for the full order. What is the capitalized acquisition cost per unit that the company will record? O a. $34.34 O b.$30.00 O c. $32.40 O d. $34.20