Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I got section A, just section B, please. A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above
I got section A, just section B, please.
A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above information. Round your answers to the nearest dollar. BDS Enterprises Income Statement For the Year Ended December 31, 20xx Sales 190.000 Cost of Goods Sold 119,700 Gross Profit 70,300 Controllable Expenses: Labor Expense 41.580 Depreciation Expense 17,000 Selling Expense 1.250 Administrative Expense 700 Other Expenses 310 60,940 2.030 Total Controllable Expenses Uncontrollable Expenses: Allocated Costs (Uncontrollable) Research and Development (Uncontrollable) Marketing Costs (Uncontrollable) 315 780 Total Uncontrollable Expenses 3.125 63.965 Total Expenses Pretax Income 6335 Income Tax Expense (21% of Pretax Income) 1330 Net Income 5,005 B. Calculate the profit margin, return on investment, and residual income, excluding uncontrollable expenses. Assume an investment base of $100,000 and 4% cost of capital. Round your percentage answers to one decimal place and residual income to the nearest dollar. Profit margin Return on investment X 90 Residual incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started