Question
Based on the Income statement of The Clothing Outlet Inc., provide the total Income Tax Expense amount for the 12-month period ending December 31, 2017.'
Based on the Income statement of The Clothing Outlet Inc., provide the total Income Tax Expense amount for the 12-month period ending December 31, 2017.'
The following account balances are available for The Clothing Outlet, Inc., a discount retailer, as of and for the year ended December 31, 2017, except for the retained earnings balance which is stated below as of January 1, 2017:
Cash...$5,500,000
Accounts receivable...$9,000,000
Marketable securities...$14,000,000
Prepaid insurance....$400,000
Inventory..$4,000,000
Equipment....$7,000,000
Accumulated depreciation: equipment.$3,000,000
Buildings.$20,700,000
Accumulated depreciation: buildings...$5,000,000
Land....$4,000,000
Investments (long-term)..$4,000,000
Patents (net)....$800,000
Accounts payable..$5,000,000
Income taxes payable$1,600,000
Salaries payable$1,000,000
Dividends payable.$2,000,000
Interest payable....$500,000
Notes payable (long-term)....$2,400,000
Bonds payable (long term)..$6,000,000
Common stock.$10,100,000
Retained Earnings (as of Jan. 1, 2017)...$8,400,000
Dividends declared$5,000,000
Sales.$108,000,000
Cost of goods sold$32,600,000
Interest revenue$2,500,000
Interest expense$1,500,000
Income tax expense(calculated @ 40%)
Selling expenses:
Sales salaries and commissions$6,000,000
Insurance expense...$1,600,000
Advertising expense........$3,500,000
Utilities expense..$4,000,000
Depreciation expense: equipment..$400,000
Delivery expense....$500,000
General and administrative expenses:
Executive and administrative salaries$5,800,000
Utilities expense...$4,200,000
Rental expense.$900,000
Depreciation expense: buildings.$500,000
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