Income Generation Nordic Enterprises manufactures snowmobiles and recreational equipment and has reported the following revenues and expenses in 2000:

a. Prepare a 2000 multistep income statement for Nordic Enterprises.

b. In 1999, Nordic Enterprises reported net income of $1,150,000 and earned an 18 percent return on total revenue (net income divided by total revenue). The goal for 2000 was to earn income in excess of $1,300,000 and earn a 20 percent return on total revenue. What amounts were reported? Did Nordic attain its goals in 2000?

c. In setting its goals for net income and return on sales for future periods, what types of factors should Nordic take into consideration?

Transcribed Image Text:

Equipment sales $7,000,000 Cost of parts and equipment sold 4,600,000 Wages and salaries 1,300,000 Sales of replacement parts 1,200,000