Question

1-Use the following information to compute NET INCOME. The income tax rate is 40%. Cost of...

1-Use the following information to compute NET INCOME. The income tax rate is 40%.

Cost of Goods Sold                                                               $ 4,000

Interest Expense                                                                        1,100

Selling and Administrative Expense                                      1,750

Sales                                                                                          10,000

Dividends                                                                                       700

a-$1,890

b-$1,260

c-$1,190

d-$1,470

e-$980

2-The data below are for Julian Company and Standard Company. Standard Company is the best company in Julian’s industry; all companies in the industry strive to do things the way that Standard does them.

                                                                    Julian               Standard

Cash                                                                500                      3,250

Accounts Receivable                                5,000                   15,000

Inventory                                                    3,000                   19,500

Property, Plant, and Equipment           12,000                   40,000

Total Assets                                             20,500                   77,750

                                                                                                               

Total Liabilities                                       13,000                   37,000

Total Equity                                               7,500                   40,750

                                                                                                               

                                                                                                               

Sales                                                          40,000                 200,000

Cost of Goods Sold                              (18,000)                 (80,000)

Wage Expense                                      (12,000)                 (60,000)

Research Expense                                  (5,000)                 (25,000)

Advertising Expense                              (1,600)                   (8,000)

Net Income                                                3,400                   27,000

            Which ONE of the following statements is TRUE regarding Julian’s income statement? Remember, Standard Company represents the standard of performance in Julian’s industry.

Julian Company has a problem with its cost of goods sold.

Julian Company has a problem with its advertising expense.

Julian Company’s profitability is better than Standard Company’s profitability.

Julian Company has a problem with its wage expense.

Julian Company has a problem with its research expense
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:-1)-

Calculation of Net income
Particulars Amount
$
Sales 10000
Less:-Cost of goods sold 4000
Gross profit 6000
less:-Selling & Administrative expenses 1750
Earning before interest & tax 4250
Less:- Interest expesnes 1100
Earning before tax 3150
Less:- Tax $3150*40% 1260
Net Income 1890

2)-

Income Statement
Particulars Julian % Standard %
$ $
Sales 40000 100 200000 100
Cost of goods sold -18000 -45 -80000 -40
Wage Expesnes -12000 -30 -60000 -30
Reserach Expesnes -5000 -12.5 -25000 -12.5
Advertising expesnes -1600 -4 -8000 -4
Net Income -3400 -8.5 -27000 -13.5
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following information: Cost of goods sold: $200,000 Income tax expense: $12,000 Research and development...
Consider the following information: Cost of goods sold: $200,000 Income tax expense: $12,000 Research and development expenses: $42,000 Interest expense: $9,000 Net Sales: $702,000 Selling, general, and administrative expenses: $121,000 A. Calculate operating income for the period. B. Calculate net income for the period.
Use the following information to complete questions Income Tax Rate: 40%             Income Before Income Tax:...
Use the following information to complete questions Income Tax Rate: 40%             Income Before Income Tax: $500,000             Cash: $50,000             Inventory: $80,000             Accounts Receivable, Net: $30,000             Accounts Payable: $20,000             Prepaid Rent: $50,000             Note Payable: $30,000             Interest Expense: $5,000             Beginning Retained Earnings Balance: $40,000             Dividends Paid: $1,000 Machinery: $100,000       Common Stock: $80,000       Accumulated Depreciation: $50,000       Bonds Payable: $150,000       Patent: $3,000 Note Receivable: $150,000 Land: $106,000 Building: $100,000 What is...
Below is the Income Statement for Lopez Company for the year-ending December 31, 2017: Sales (net)...
Below is the Income Statement for Lopez Company for the year-ending December 31, 2017: Sales (net) $500,000 Cost of Goods Sold: Beginning Inventory $50,000   Net Purchases 300,000 Goods Available for Sale 350,000   Ending Inventory 40,000 Cost of Goods Sold 310,000 Gross Profit $190,000 Expenses: Wages $35,000 Depreciation 30,000 Advertising 15,000   Administrative 5,000 $85,000 Income from Operations $105,000 Gain on Sale of Equipment 50,000 Net Income $155,000 The following balances were derived from the balance sheet: December 31 December 31 2017...
A company wants to earn net income of $300,000. Its tax rate is 30% and its...
A company wants to earn net income of $300,000. Its tax rate is 30% and its interest expense is $100,000. In addition, cost of goods sold is 70% of sales and its depreciation and amortization expenses are $75,000. What must the company’s revenue be for it to achieve its goal? Question 23 options: 1) $1,903,730 2) $1,782,271 3) $2,011,905 4) $2,643,538 5) $2,241,774
You are given the following information for Smashville, Inc. Cost of goods sold: $ 184,000 Investment...
You are given the following information for Smashville, Inc. Cost of goods sold: $ 184,000 Investment income: $ 1,600 Net sales: $ 387,000 Operating expense: $ 88,000 Interest expense: $ 7,400 Dividends: $ 6,000 Tax rate: 30 % Current liabilities: $ 12,000 Cash: $ 21,000 Long-term debt: $ 32,000 Other assets: $ 40,000 Fixed assets: $ 125,000 Other liabilities: $ 5,000 Investments: $ 36,000 Operating assets: $ 64,000    Calculate the gross margin, the operating margin, return on assets, and...
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information...
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $165,390 Selling expenses 55,250 Administrative expenses 29,210 Sales 351,890 Finished goods inventory, January 1 39,760 Finished goods inventory, January 31 36,240 a. For the month ended January 31, determine Bandera Manufacturing’s cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 $ $ $ b....
Cost of Goods Sold, Profit Margin, and Net Income for a Manufacturing Company The following information...
Cost of Goods Sold, Profit Margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $4,490,000 Selling expenses 530,000 Administrative expenses 340,000 Sales 6,600,000 Finished goods inventory, January 1 880,000 Finished goods inventory, January 31 775,000 a. For the month ended January 31, determine Bandera Manufacturing’s cost of goods sold. Bandera Manufacturing Company Cost of Goods Sold January 31 $ $ $ b....
For fiscal year 2017, Crown Point Products had income as follows: Sales $56,000,000 Less: Cost of...
For fiscal year 2017, Crown Point Products had income as follows: Sales $56,000,000 Less: Cost of goods sold 38,200,000 Selling and administrative expense 5,610,000 Interest expense 1,010,000 Income before taxes 11,180,000 Less income taxes 3,913,000 Net income $7,267,000 Total assets were $96,000,000, and noninterest-bearing current liabilities were $3,600,000. The company has a required rate of return on invested capital equal to 10 percent. Calculate NOPAT, invested capital, and ROI for Crown Point Products. (Round ROI to 2 decimal places, e.g....
For fiscal year 2017, Crown Point Products had income as follows: Sales $54,000,000 Less: Cost of...
For fiscal year 2017, Crown Point Products had income as follows: Sales $54,000,000 Less: Cost of goods sold 38,200,000 Selling and administrative expense 5,670,000 Interest expense 1,030,000 Income before taxes 9,100,000 Less income taxes 3,185,000 Net income $5,915,000 Total assets were $95,000,000, and noninterest-bearing current liabilities were $3,500,000. The company has a required rate of return on invested capital equal to 12 percent. Calculate NOPAT, invested capital, and ROI for Crown Point Products. (Round ROI to 2 decimal places, e.g....
Required information Use the following information for the Problems below. [The following information applies to the...
Required information Use the following information for the Problems below. [The following information applies to the questions displayed below.] Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 97,200 Expenses Cost of goods sold 42,000 Depreciation expense 12,000 Salaries expense 18,000 Rent expense 9,000 Insurance expense 3,800 Interest expense 3,600 Utilities expense 2,800 Net income $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT