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) $2,040

Labor expense 41,590

Sales 189,000

Research and development (uncontrollable) 315

Depreciation expense 16,000

Net income/(loss) ?

Cost of goods sold 119,070

Selling expense 1,240

Total expenses ?

Marketing costs (uncontrollable) 780

Administrative expense 680

Income tax expense (21% of pretax income) ?

Other expenses 310

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 $fill in the blank d2f8e80eb07e043_2 fill in the blank d2f8e80eb07e043_4 $fill in the blank d2f8e80eb07e043_6 $fill in the blank d2f8e80eb07e043_8 fill in the blank d2f8e80eb07e043_10 fill in the blank d2f8e80eb07e043_12 fill in the blank d2f8e80eb07e043_14 fill in the blank d2f8e80eb07e043_16 fill in the blank d2f8e80eb07e043_18 fill in the blank d2f8e80eb07e043_20 fill in the blank d2f8e80eb07e043_22 Total Expenses $fill in the blank d2f8e80eb07e043_23 $fill in the blank d2f8e80eb07e043_25 fill in the blank d2f8e80eb07e043_27 $fill in the blank d2f8e80eb07e043_29 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 fill in the blank bc053efde03c076_1 % Return on investment fill in the blank bc053efde03c076_2 % Residual income $fill in the blank bc053efde03c076_3 C. Which of the following statements is correct? Uncontrollable costs are included in the income statement because a. these costs ultimately affect each division. b. these costs are the responsibility of each division manager. c. these costs are non-recurring. d. these costs are head office's responsibility.

Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intem, 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 2. Allocated costs (uncontrollable) $2,040 41,590 Labor expense 189,000 315 16,000 ? 119,070 Sales Research and development (uncontrollable) Depreciation expense Net income/(loss) Cost of goods sold Selling expense Total expenses Marketing costs (uncontrollable) ) Administrative expense Income tax expense (21% of pretax income) Other expenses 1.240 ? ? 780 680 2 310 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 Total Expenses 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 96 Return on investment Residual income s C. Which of the following statements is correct? Uncontrollable costs are included in the income statement because a. these costs ultimately affect each division. b. these costs are the responsibility of each division manager. c. these costs are non-recurring. d. these costs are head office's responsibility