Income statements for
Finch Company for 2018 and 2019 follow:
FINCH COMPANY
Income Statements
2019
2018...
Income statements for
Finch Company for 2018 and 2019 follow:
FINCH COMPANY
Income Statements
2019
2018
Sales
$
200,400
$
180,400
Cost of goods
sold
142,200
120,200
Selling
expenses
21,700
19,700
Administrative
expenses
13,000
15,000
Interest
expense
3,500
5,500
Total
expenses
$
180,400
$
160,400
Income before
taxes
20,000
20,000
Income taxes
expense
6,000
3,900
Net income
$
14,000
$
16,100
Required
Perform a horizontal
analysis, showing the percentage change in each income statement
component between 2018 and 2019.
Perform...
Income statements for Zachary Company for Year 3 and Year 4
follow:
ZACHARY COMPANY
Income Statements...
Income statements for Zachary Company for Year 3 and Year 4
follow:
ZACHARY COMPANY
Income Statements
Year 4
Year 3
Sales
$
201,600
$
181,600
Cost of goods sold
143,300
121,300
Selling expenses
20,200
18,200
Administrative expenses
12,100
14,100
Interest expense
3,500
5,500
Total expenses
$
179,100
$
159,100
Income before taxes
22,500
22,500
Income taxes expense
6,900
3,600
Net income
$
15,600
$
18,900
Required
a. Perform a horizontal analysis, showing the
percentage change in each income statement component...
Following is the income statement for Masters Corporation for
the year ended December 31, 2018:
Masters...
Following is the income statement for Masters Corporation for
the year ended December 31, 2018:
Masters Corporation
Income Statement
For the Year Ended December 31, 2018
Net sales $570,000
Expenses:
Cost of goods sold 278,500
Selling expenses 35,000
General expenses 39,300
Interest expense 42,000
Income tax expense 35,000
Total expenses 429,800
Net Income $140,200
Prepare a vertical analysis of the income statement
showing appropriate percentages for each item listed
above.
The condensed income statement for a Fletcher Inc. for the past
year is as follows:
Product...
The condensed income statement for a Fletcher Inc. for the past
year is as follows:
Product
F
G
H
Total
Sales
$300,000
$210,000
$340,000
$850,000
Costs:
Variable costs
$180,000
$180,000
$220,000
$590,000
Fixed costs
50,000
50,000
40,000
140,000
Total costs
$230,000
$230,000
$260,000
$730,000
Income (loss)
$ 70,000
$(20,000)
$ 80,000
$120,000
Management is considering the discontinuance of the manufacture and
sale of Product G at the beginning of the current year. The
discontinuance would have no effect on the...
The income statement for Sapphire Manufacturing Company for 2018
is as follows:
Sales (20,000 units)...
The income statement for Sapphire Manufacturing Company for 2018
is as follows:
Sales (20,000 units)
$150,000
Variable expenses
50,000
Contribution margin
$100,000
Fixed expenses
30,000
Operating income
$ 70,000
If sales increase by 2,000 units, what will happen to
profit?
Select one:
a. Profit will increase by $13,000.
b. Profit will increase by $10,000.
c. Profit will decrease by $15,000.
d. Profit will decrease by $18,000.
X Company, a merchandiser, had the following income statement
for 2018:
Sales
$194,274
Cost of goods...
X Company, a merchandiser, had the following income statement
for 2018:
Sales
$194,274
Cost of goods sold
110,863
Gross margin
$83,411
Other operating expenses
49,915
Profit
$33,496
$92,563 of the cost of goods sold were variable, and $33,715 of the
other operating expenses were variable. If cost behavior in 2019 is
expected to continue as it did in 2018, what must total sales be in
2019 in order for X Company to break even?
The balance sheet for December 31, 2018, December 31, 2017, and
the income statement for the...
The balance sheet for December 31, 2018, December 31, 2017, and
the income statement for the year ended December 31, 2018, for
Rocket Company follows.
Rocket Company
Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Cash
$ 25,000
$ 20,000
Accounts receivable, net
60,000
70,000
Inventory
80,000
100,000
Land
50,000
50,000
Building and equipment
130,000*
115,000
Accumulated depreciation
(85,000)
(70,000)
Total assets
$260,000
$285,000
Liabilities and Stockholders' Equity
Accounts payable
$ 30,000
$ 35,000
Income taxes payable
4,000 ...
The Del Rio Derrick
Co. has the following statements from 2018:
Income Statement
Sales
$650,000
-...
The Del Rio Derrick
Co. has the following statements from 2018:
Income Statement
Sales
$650,000
-
COGS
507,000
Gross
Profits
$143,000
-
Expenses
- 91,000
EBIT
$ 52,000
-Interest
$ 12,800
EBT
$ 39,200
-
Taxes
$ 9,408
EAT
$ 29,792
Balance Sheet
Current liabilities
$80,000
Current
Assets
$136,500
L-T
Debt
$160,000
Fixed
Assets
563,500
Equity
460,000
Total
Assets
700,000
Total Liabilities
&
Equity
$700,000
The firm expects that
sales will...
For Question 1 through 4, see the following financial
information (Income Statement and balance Sheet) for...
For Question 1 through 4, see the following financial
information (Income Statement and balance Sheet) for Thornton
Company for the years ending December 31, 1998 and
1999.
1998
1999
Notes
Payable
$250,000
$220,000
Inventories
$430,000
$390,000
Long-term
Investment
$70,000
$80,000
Sales
$2,500,000
$2,900,000
Corporate
Bond
$580,000
$650,000
Annual
Depreciation
$100,000
$110,000
Excess Paid in
Capital
$100,000
$130,000
Taxes
$70,000
$90,000
Cash
??
??
Accumulated
Depreciation
$200,000
$310,000
Accounts
Payable ...
Below is Salem Company’s income statement for 2019 that was
prepared by an inexperienced accountant. Salem...
Below is Salem Company’s income statement for 2019 that was
prepared by an inexperienced accountant. Salem Company Income
Statement As of December 31, 2019 Revenues: Sales revenue
……………..…………………………………… $298,000 Wages payable…………..………………………………………..
4,000 Gain on sale of investment…………………………………….. 5,250 Deferred
revenue………………………………………………. 2,500 Interest
payable………………………………………………… 1,000 Accumulated
depreciation……………………………………… 8,000 Total revenues
………………………………………………….. $318,750 Less operating expenses: Selling
expenses….……………………… …………………. $32,250 Research and development
expense………………….…….. 4,750 Prepaid advertising …….………………………………….
3,000 Indirect manufacturing labor cost..………………………… 16,200
Utilities expense..…. .....................………………………… 10,200 Direct
manufacturing labor cost....