ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock

Question:

ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at the end of 2019.

Required:

1. Prepare a single-step income statement for ERS for 2019.

2. Compute net profit margin for ERS. If ERS is able to increase its service revenue by $100,000, what should be the effect on future income?

3. Assume that ERS net profit margin was 8.5% for 2018. As an investor, what conclusions might you draw about ERS' future profitability?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones of Financial Accounting

ISBN: 978-1337690898

4th edition

Authors: Jay Rich, Jeff Jones

See More Books

Question Posted: Sep 21, 2024 05:14 AM

See More Questions

5 Melbourne Corporation has traditionally made a subcomponent of its major product. Annual production of 30,000 subcomponents results in the following costs: Direct materials Direct labor Variable...
Royals Palm, Inc. reports the following assets and liabilities. Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholders' Equity...
Each integral represents the volume of a solid. Describe the solid
ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock outstanding for the year. The following income statement account balances are available for ERS at...
Hurricane Inc. purchased a portfolio of available-for-sale securities in 2014, its first year of operations. The cost and fair value of this portfolio on December 31, 2014, was as follows: On June...
Anthony and Michelle Constantino just got married and received $32,000 in cash gifts for their wedding. How much will they have on their twenty-fifth anniversary if they place half of this money in a...
Balance sheet information for Milton Company is as follows: Required: Compute the missing values (a)-(j). All the necessary information is provided?
The following information is available for Bergin Pastry Shop. Gross margin.....................................................................$34,700 Income from...
Give a geometric description of the set of points in space whose coordinates satisfy the given pairs of equations. x = 2, y = 3
A double-pipe heat exchanger operating in the parallel-flow mode carries glycerin in the inner pipe and water in the annular region. The glycerin enters the heat exchanger at 90C at a mass flow rate...
8. Your father who is a manager, broke his arm because he slipped and fell in a hotel room shower while on a business trip. Is your father entitled to workers' compensation benefits? 3. A. 5.
Spade Manufacturing produces surfboards. The company uses a normal-costing system and allocates manufacturing overhead on the basis of direct manufacturing labor-hours. Most of the company's...
Telnex Corporation maintains its internal inventory records using first - in , first - out ( FIFO ) under a perpetual inventory system. The following information relates to its inventory during the...
Suppose a local college has tasked you to develop a database that will keep track of students and the courses that they have taken. In addition to tracking the students and courses, the client wants...
(Basic Terminology) In examining the costs of pension plans, Helen Kaufman, CPA, encounters certain terms. The components of pension costs that the terms represent must be dealt with appropriately if...
Match the following. Answers may be used more than once: Measurement Method A. Amortized cost B. Equity method C. Acquisition method and consolidation D. Fair value method Reporting Method 1. Less...
KEEP OR DROP AudioMart is a retailer of radios, stereos, and televisions. The store carries two portable sound systems that have radios, tape players, and speakers. System A, of slightly higher...
ACCEPT OR REJECT A SPECIAL ORDER Steve Murningham, manager of an electronics division, was considering an offer by Pat Sellers, manager of a sister division. Pats division was operating below...
COST-BASED PRICING DECISION Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $1,800 of direct materials, $1,600 of direct labor, and $800 of overhead. Jeremy...
Venus Corp. sold goods, with a selling price of $9421, for cash. The state sales tax rate is 8%. What amount is credited to the Sales Revenue account? (Round calculations to the nearest dollar.) O...
Sandhill Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base rate of $1,330 per month. One of the barbers serves as the manager and receives an extra $540 per month. In...
Selected results from Samsung, Apple, and Google follow Santung In millions Current Year Total assets Total liabilities Total equity $302,511 76,952 225,550 Required: Prior Year $291,179 78,599...

ERS Inc. maintains and repairs office equipment. ERS had an average of 10,000 shares of common stock

Question:

Step by Step Answer:

1 ERS Inc Income Statement For the year ended December 31 2019 Revenues Service revenue 933800 Expen...View the full answer

Cornerstones of Financial Accounting

Students also viewed these Cost Accounting questions