Income Statement (A-H)

Data for current year

Number of X units sold 11,000

Sales price per unit 1,400

Cost per unit 300

Commission (% of sales) 10%

Freight cost per unit 400

Number of Y units sold 17,000

Sales price per unit 13,800

Cost per unit 700

Commission (% of sales) 20%

Freight cost per unit 300

Advertising per unit 200

Travel expense 200,000

Marketing expense 62,000

Utility expense 14,000

Salaries 573,000

Salary overhead 30%

Cost of Machine M 1,248,000

Years to depreciate 8

Cost of Machine N 668,000

Years to depreciate 4

Tax rate 40%

Dividend Payout Ratio 20%

Data just prior to current year

Paid In Capital 15,000,000

Additional Paid in Capital 102,000,000

Retained Earnings 170,000,000

1. What was Sales?

A Between 100,000,000 and 166,000,000

B Between 166,000,000 and 231,000,000

C Between 231,000,000 and 242,000,000

D Between 242,000,000 and 253,000,000

E Between 253,000,000 and 262,000,000

F Between 262,000,000 and 270,000,000

G Between 270,000,000 and 295,000,000

H Between 295,000,000 and 320,000,000

2. What was Net Income?

A Between 50,000,000 and 72,000,000

B Between 72,000,000 and 93,000,000

C Between 93,000,000 and 98,000,000

D Between 98,000,000 and 102,000,000

E Between 102,000,000 and 107,000,000

F Between 107,000,000 and 112,000,000

G Between 112,000,000 and 124,000,000

H Between 124,000,000 and 136,000,000

3. What was Return on Equity?

A Between 19.0% and 22.0%

B Between 22.0% and 24.0%

C Between 24.0% and 26.0%

D Between 26.0% and 27.0%

E Between 27.0% and 29.0%

F Between 29.0% and 30.0%

G Between 30.0% and 35.0%

H Between 35.0% and 40.0%