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EASY-TURN TOY COHPANY Income Statement Quarter ended March 31, 1985 Revenue Gross billing (90,000 units at $3 each) Less: Provisions for uncollectible acc. $270,000 5,400
EASY-TURN TOY COHPANY Income Statement Quarter ended March 31, 1985 Revenue Gross billing (90,000 units at $3 each) Less: Provisions for uncollectible acc. $270,000 5,400 Discount taken by customer Revenue from operations $262,980 Expenses Factory cost of goods (110,000 units produced) Materials appropriated to production Direct labor costs ineurred Factory overhead $110,000 77,000 $22,000 4,400 Variable costs: Indirect labor Pover Supplies, Misc. Supervision Property taxes Depreciation Insurance Miscellaneous 22,000 6,000 3,000 3,000 300 Fixed costs 2 700 15,000 $235,000 Total factory costs incurred Less: Unsold inventory of finished goods Pactory cost of goods sold $193,000 Selling expenses (which vary proportionately 45,000 with sales) Adminietration costs and expenses (fixed) Total expenses Net margin from operations Interest Earnings before taxes Income taxes Net Profits 2.980 .750 12,230 6,115 EASY-TURN TOY COHPANY Income Statement Quarter ended March 31, 1985 Revenue Gross billing (90,000 units at $3 each) Less: Provisions for uncollectible acc. $270,000 5,400 Discount taken by customer Revenue from operations $262,980 Expenses Factory cost of goods (110,000 units produced) Materials appropriated to production Direct labor costs ineurred Factory overhead $110,000 77,000 $22,000 4,400 Variable costs: Indirect labor Pover Supplies, Misc. Supervision Property taxes Depreciation Insurance Miscellaneous 22,000 6,000 3,000 3,000 300 Fixed costs 2 700 15,000 $235,000 Total factory costs incurred Less: Unsold inventory of finished goods Pactory cost of goods sold $193,000 Selling expenses (which vary proportionately 45,000 with sales) Adminietration costs and expenses (fixed) Total expenses Net margin from operations Interest Earnings before taxes Income taxes Net Profits 2.980 .750 12,230 6,115
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