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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? ? Gross profit Allocated costs (uncontrollable) $2,035 Labor expense 41,590 Sales 190,000 Research and development (uncontrollable) 310 Depreciation expense 18,000 Net income/(loss) ? Cost of goods sold 119,700 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 680 Income tax expense (21% of pretax income) ? 330 Other expenses A. Prepare the income statement using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Sales BDS Enterprises Income Statement For the Year Ended Dec. 31, 20xx Sales Cost of Goods Sold Gross Profit Labor Expense Depreciation Expense Selling Expense Administrative Expense Other Expenses Allocated Costs (Uncontrollable) Research and Development (Uncontrollable) Marketing Costs (Uncontrollable) Total Expenses Pretax Income Income Tax Expense (21% of Pretax Income) Net Income 0000000 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin % Return on investment % Residual income $
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