Identify and describe the three inventory estimation
methods.
.Problem 6-10B Analysis of inventory errors
Incorrect Income...
Identify and describe the three inventory estimation
methods.
.Problem 6-10B Analysis of inventory errors
Incorrect Income Statement Information for Years Ended December
31
Corrected Income Statement Information for Years Ended December
31
2017
%
2018
%
2017
%
2018
%
Sales
Cost of goods sold
Gross profit
In comparing income statement information for the years ended
December 31, 2017, and 2018, the owner noticed an increase in the
gross profit. He was puzzled because he knew that inventory costs
were...
Following are condensed income statements for Uncle Bill's Home
Improvement Center for the years ended December...
Following are condensed income statements for Uncle Bill's Home
Improvement Center for the years ended December 31, 2017, and
2016:
2017
2016
Sales
$
595,320
$
575,960
Cost of goods sold
(445,060
)
(396,440
)
Gross profit
$
150,260
$
179,520
Operating expenses
(114,070
)
(104,170
)
Net income (ignoring income
taxes)
$
36,190
$
75,350
Uncle Bill was concerned about the operating results for 2017
and asked his recently hired accountant, "If sales increased in
2017, why was...
Southport Company
Income Statement
For the year ended December 31, 2016
Sales &nb
Southport Company
Income Statement
For the year ended December 31, 2016
Sales
2,200,000
Cost of Goods
Sold
1,200,000
Gross Profit
1,000,000
Selling and General
Expenses
670,000
Loss on
Earthquake
200,000
Gain on
equipment
(30,000)
Interest
Expense
20,000 860,000
Net Income before
taxes
140,000
Income taxes at 30%
42,000
Net
Income
98,000
The following information becomes available to you before the
2016 statements are issued.
On July 1, 2016, the decision was made to discontinue the...
The following information is available for All-True Window
Company
January 1, 2017 2017 December 31, 2017...
The following information is available for All-True Window
Company
January 1, 2017 2017 December 31, 2017
Raw materials inventory 21,000 30,000
Work in process inventory 13,500 17,200
Finished goods inventory 27,000 21,000
Materials purchased 650,000
Direct labor 300,000
Manufacturing overhead 450,000
Sales revenue 1,625,000
a. Determine the cost of materials used during the year?
b. Prepare Cost of Goods Manufactured statement for the year
ended December 31, 2017.
c. Prepare income statement through gross profit for the year
ended December...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$1,016,400
$770,000
Cost of goods sold
845,000
650,000
Gross profit
$171,400
$120,000
Selling expenses
$52,460
$43,000
Administrative expenses
46,800
36,000
Total operating expenses
$99,260
$79,000
Income before income tax
$72,140
$41,000
Income tax expenses
28,900
16,400
Net income
$43,240
$24,600
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
Income statement data for Boone Company for two recent years
ended December 31, are as follows:...
Income statement data for Boone Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$396,000
$330,000
Cost of goods sold
330,400
280,000
Gross profit
$65,600
$50,000
Selling expenses
$17,600
$16,000
Administrative expenses
16,520
14,000
Total operating expenses
$34,120
$30,000
Income before income tax
$31,480
$20,000
Income tax expenses
12,600
8,000
Net income
$18,880
$12,000
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:...
Income statement data for Winthrop Company for two recent years
ended December 31, are as follows:
Current
Year
Previous
Year
Sales
$838,200
$660,000
Cost of goods sold
706,800
570,000
Gross profit
$131,400
$90,000
Selling expenses
$38,610
$33,000
Administrative expenses
35,000
28,000
Total operating expenses
$73,610
$61,000
Income before income tax
$57,790
$29,000
Income tax expenses
23,100
11,600
Net income
$34,690
$17,400
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease) for the
current year when compared...
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 ...
Horizontal Analysis of the Income Statement
Income statement data for Boone Company for the years ended...
Horizontal Analysis of the Income Statement
Income statement data for Boone Company for the years ended
December 31, 20Y5 and 20Y4, are as follows:
20Y5
20Y4
Sales
$487,500
$390,000
Cost of goods sold
(414,800)
(340,000)
Gross profit
$72,700
$50,000
Selling expenses
$(20,700)
$(18,000)
Administrative expenses
(18,450)
(15,000)
Total operating expenses
$(39,150)
$(33,000)
Income before income tax
$33,550
$17,000
Income tax expenses
(13,400)
(6,800)
Net income
$20,150
$10,200
a. Prepare a comparative income statement with
horizontal analysis, indicating the increase (decrease)...
presented below is income statement information of the
Nebraska corporation for the year ended December 31,...
presented below is income statement information of the
Nebraska corporation for the year ended December 31, 2018.
sales revenue 776,000
salaries expense 103,000
dividend revenue 4,300
miscellaneous expense 25,000
loss on sale of investments 9 300
cost of goods sold 420,000
insurance expense 33,000
depreciation expense 31,000
income tax expense 48,000
rent expense 23,000
prepare the necessary closing entries at December 31 2018. (if no
entry is required for a transaction/event, select no journal entry
required in the first account...