Question
Exercise 8. On 2014 December 31, RodCast Company, the accounting records showed: Net sales$807,000,Gross profit$177,000,Net income $35,000,Income tax expense $15,000,Selling, general, and administrative expenses $87,000
Exercise 8.
On 2014 December 31, RodCast Company, the accounting records showed:
Net sales$807,000,Gross profit$177,000,Net income $35,000,Income tax expense $15,000,Selling, general, and administrative expenses $87,000
Compute Company's cost of goods sold, income from operations, incomebefore taxes, and interest expense.
Solution:
Net Sales$807,000
Cost of Goods Sold630, 000 ( this missing value you must calculated)
Gross Profit$177,000
Selling, general, and administrative expenses$87,000
Income From Operations(177,000 - 87,000)= $90,000 ( this missing value you must calculated)
Interest Expense(90,000-50,000)= $40,000 ( this missing value you must calculated)
Income Before Taxes(35,000+15,000)=$50,000 ( this missing value you must calculated)
Income Taxes$15,000
Net Income$35,000
Exercise 9.
On 2014 December 31, Lidowski Company, the accounting records showed:
Net sales
$180,000
Gross profit
$100,000
Net income
$25,000
Income tax expense
$9,000
Selling, general, and administrative expenses
$16,500
Compute Company's cost of goods sold, income from operations, income before taxes, and interest expense.
Net Sales
$150,00
Cost of Goods Sold
Gross Profit
Selling, general, and administrative expenses
Income From Operations
Interest Expense
Income Before Taxes
Income Taxes
Net Income
Required:
Calculate cost of goods sold, income from operations, income before taxes, and interest expense.
Exercise 5.
On 2014 December 31, Bryniuk's Company, the accounting records showed the following information:
Assets
$750,000
Liabilities
$250,000
Capital Stock
$500,000
Earned revenues
$195,000
Incurred expenses
$97,000
Dividends declared and paid amounted to
$18,000
1. Prepare the Statement of Stockholders' Equity on 2014 December 31.
Exercise 2. Applying Basic Accounting Equation
Dan and Den, Inc. reports the following assets and liabilities. Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholders' Equity (Capital Stock)).
Cash
$50,000
Accounts Payable
15,000
Supplies
1,000
Loan Payable
9,000
Inventory
15,000
Answer:
Assets
= Liabilities
+ Stockholders' Equity
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