Financial statement data for Delicious Dishes, Inc. are given below. All figures are in dollars. Use this data to construct an Income Statement for the year ending December 31, 2016 and use your constructed statement to answer the following 4 questions. Advertising Beginning of year inventory Depreciation End of year inventory General and administrative expenses 16,400 128,700 5,200 124,600 21,900 Gross sales Interest expense Lease payments Management salaries 824,500 21,700 12,000 104,600 524,700 12,600 Purchases Research and development Returns and allowances 3,600 35,900 Taxes What was gross profit from income statement for the year ending December 31, 2016? 2. What was operating profit (i.e., EBIT) from Delicious Dishes income statement for the year ending December 31, 2016? 3. What was profit before taxes (i.e., EBT) from Delicious Dishes income statement for the year ending December 31, 2016? 4. What was net income from Delicious Dishes income statement for the year ending December 31, 2016? 5. On December 10, 2016, Jennings, Inc. paid out total dividends of $550,000 (this was the only dividend payment made during the year). If Jennings reported Retained earnings of $2,168,000 for 2015 and Retained earnings of $2,380,000 for 2016, what was Jennings reported net income in 2016? In 2016, Variman, Incorporated had Gross Accounts receivable of $136,200 and management estimated the Allowance for Doubtful accounts to be $12,500. Compute the ratio of Allowance of Doubtful accounts to Net Accounts receivable for Variman, Inc. for 2016 (that is, compute Allowance/Net Accounts receivable - 6. 1 record your answer as a percent rounded to one decimal place; for example, record 0.234567 as 23.5%). 7. In 2016, the Whaddock Company purchased 10,200,000 units from its supplier at a cost of $10.00 Whaddock sold 10,525,000 units of its product in 2016 at a price of $14.50 per unit. Whaddock began 2016 with 1,425,000 units in inventory (inventory is carried at a cost of S10.00 per unit). Using this information, compute Whaddock's gross profit for 2016. 8. Referring back to the previous question, compute Whaddock's 2016 ending inventory balance in dollars (valued at cost per unit of $10.00). 9. In 2016, Timmers, Inc. (a retail clothing company) sold 500,000 units of its product at an average price of $50.00 per unit. The company reported estimated returns and allowances in 2016 of 1.5 percent of gross revenue. Timmers actually purchased 510,000 units of its product from its manufacturer in 2016 at an average cost of $35.00 per unit. Timmers began 2016 with 52,000 units of its product in inventory (carried at an average cost of $35.00 per unit). Operating expenses (excluding depreciation) for Timmers, Inc. in 2016 were $2,250,000 and depreciation expense was $750,000. Timmers had $8,400,000 in debt outstanding throughout all of 2016. This debt carried an average interest rate of 7.5 percent. Finally, Timmers' tax rate was 40 percent. Timmers' fiscal year runs from January 1 through December 31. Given this information, compute net income for Timmers for 2016. per unit. 10. Referring back to the previous problem, compute Timmers' ending inventory balance for 2016 (that is, what did Timmers report as inventory on its December 31, 2016 balance sheet)
