Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balance Sheets Balanced Sheet: Beginning Balance Ending Balance Average Balance Assets Cash $ 150,000 $ 125,600 $ 137,800 Accounts receivable $ 180,000 100,000 140,000 Inventory

Balance Sheets
Balanced Sheet: Beginning Balance Ending Balance Average Balance
Assets
Cash $ 150,000 $ 125,600 $ 137,800
Accounts receivable $ 180,000 100,000 140,000
Inventory $ 240,000 120,000 180,000
Property, plant & equipment (net) $ 793,000 753,000 773,000
Other assets $ 37,000 37,000 37,000
Total assets $ 1,400,000 $ 1,135,600 $ 1,267,800
Liabilities & stockholders' equity
Accounts payable $ 80,000 40,000 $ 60,000
Bonds payable $ 550,000 250,000 400,000
Common stock $ 410,000 410,000 410,000
Retained earnings $ 360,000 435,600 397,800
Total liabilities & stocholders' equity $ 1,400,000 $ 1,135,600 $ 1,267,800
Edman Company
Income Statement
Sales $ 2,500,000
Variable expenses:
Cost of goods sold 1,600,000
Variable selling expense 240,000
Total variable expenses 1,840,000
Contribution margin 660,000
Fixed expenses:
Fixed selling expense 220,000
Fixed administrative expense 300,000
Total fixed expenses 520,000
Net operating income 140,000
Interest expense (8%) 32,000
Net income before tax 108,000
Tax expense (30%) 32,400
Net income $ 75,600

Give the following information, how do you find the margin, turnover, and return on investment?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

12th Edition

0136128270, 9780136128274

More Books

Students also viewed these Accounting questions