1. The following information is available for Shawson
Ltd. for calendar 2018 (20 marks):
Cost of...
1. The following information is available for Shawson
Ltd. for calendar 2018 :
Cost of goods
sold
595,000
Income tax
expense
4,500
Interest
expense
15,000
Interest
revenue
19,000
Operating
expenses
97,000
Sales
$725,000
Sales returns and
allowances
22,000
Instructions
(a) Use the above
information to prepare a multiple-step income statement for the
year ended December 31, 2018.
(b) Calculate the
gross profit margin and the profit margin for 2018.
Using the following information, what is the amount of gross
profit? Purchases $ 28,008 Selling expenses...
Using the following information, what is the amount of gross
profit? Purchases $ 28,008 Selling expenses $ 869 Merchandise
inventory, September 1 6,087 Merchandise inventory, September 30
8,042 Administrative expenses 682 Sales 59,358 Rent revenue 1,123
Interest expense 874 a.$32,436 b.$59,358 c.$33,305 d.$85,411
Water company
Comparative Income Statement
For the Second Quarter
April
May
June
Sales in units
4,500...
Water company
Comparative Income Statement
For the Second Quarter
April
May
June
Sales in units
4,500
5,250
6,000
Sales Revenue
$630,000
$735,000
$840,000
Cost of goods sold
$252,000
$294,000
$336,000
Gross margin
$378,000
$441,000
$504,000
Selling and administrative expenses:
Shipping expense
$56,000
$63,500
$71,000
Advertising expense
$70,000
$70,000
$70,000
Salaries and commisions
$143,000
$161,500
$180,500
Insurance expense
$9,000
$9,000
$9,000
Depreciation expense
$42,000
$42,000
$42,000
Total selling and administrative expense
$320,000
$346,250
$372,500
Net operating...
1. Purchases, $96; Gross Sales, $176; Sales Returns and
Allowances, $15; Sales Discounts, $24; Operating Expenses,...
1. Purchases, $96; Gross Sales, $176; Sales Returns and
Allowances, $15; Sales Discounts, $24; Operating Expenses,
$55; Net Sales, $137; Freight-In, $9; Beginning Inventory,
$18; EndingInventory, $8; Net Purchases, $62; Cost of Goods
Sold, $ 81
a. The gross profit is __
(Use parentheses or a minus sign to show a net loss.)
b. The net income or net loss is __
2.
Jack's Online Service on April 30 has the following account
balances:
Sales
$27,000
Sales Returns and Allowances...
13.If sales are $100,000, fixed expenses are $30,000, and
variable expenses are $57,000, then the contribution...
13.If sales are $100,000, fixed expenses are $30,000, and
variable expenses are $57,000, then the contribution margin must
be:
14. If the cost of goods sold is $95,000, beginning merchandise
inventory is $8,000, and merchandise purchases are $110,000, then
the ending merchandise inventory must be:
15. If sales are $100,000, selling and administrative expenses
are $29,500, and the gross margin is $40,000, then the net
operating income must be:
Dr. Zhivago Diagnostics Corp.'s income statement for 20X1 is as
follows:
Sales
$
2,790,000
Cost of...
Dr. Zhivago Diagnostics Corp.'s income statement for 20X1 is as
follows:
Sales
$
2,790,000
Cost of goods
sold
1,550,000
Gross
profit
$
1,240,000
Selling and
administrative expense
306,000
Operating
profit
$
934,000
Interest
expense
54,400
Income before
taxes
$
879,600
Taxes (30%)
263,880
Income after
taxes
$
615,720
a. Compute the profit margin for 20X1. I have
22.06 which is correct
b. Assume in 20X2, sales increase by 10 percent
and cost of goods sold increases by 20 percent. The...
Fill in the missing amounts.
Wildhorse Company
Sandhill Company
Sales revenue
$85,000
$
Sales returns and...
Fill in the missing amounts.
Wildhorse Company
Sandhill Company
Sales revenue
$85,000
$
Sales returns and allowances
4,000
Net sales
79,000
146,000
Cost of goods sold
45,030
Gross profit
77,380
Operating expenses
22,515
Net income
20,440
Calculate the profit margin and the gross profit rate for each
company. (Round answers to 1 decimal place, e.g.
15.5%.)
Wildhorse Company
Sandhill Company
Profit margin
%
%
Gross profit rate
%
%
Sunland Company
Blossom Company
Sales Revenue
$97,400
??
Sales returns and allowances
??
$6,000
Net sales...
Sunland Company
Blossom Company
Sales Revenue
$97,400
??
Sales returns and allowances
??
$6,000
Net sales
81,600
129,000
Cost of goods sold
54,000
??
Gross Profit
??
48,000
Operating expenses
14,660
??
Net Income
??
16,000
Financial informantion for two companies presented below: Fill
in the missing amounts.
Calculate the profit margin and the gross profit rate for each
company. (Round answers to 1 decimal place, e.g.15.5%)
Sunland Company
Blossom Company
Profit Margin
?? %
?? %
Gross profit rate...