Mini-Exercise 9-1 (Algo) Gross profit calculations LO 3 Net sales for the year were $1,050,000 and cost of goods sold was $735,000 for the company/s existing products. A new product is presently under developenent and has an expected selling price of not more than $68 per unit in order to femain compebsive with similar products in the marketplace. Required: a. Calculate gross profit and the gross profit ratio for the yeat. b. What is the maximum cost pet unit that can be incurred to manufacture the new product so that the product can be priced competitivety and will not result in a reduction to the compary's gross profit ratio? (Do not round intermediate calculations. Aound your final answer to 2 decimal places.) Net income was $68,500; accounts receivable decreased by $17,000; inventory increased by $7,800; proceeds from the issuance of long-term debt were $22,350; accounts payable decreased by $5,800; equipment purchases were $73,500; depreciation and amortization expense was $29,400. (Amounts to be deducted should be indicated with a minus sign.) Required: Calculate the net cash provided (used) by operating activities for the period. Selling, general, and administrative expenses were $65,000; net saies were $295,100; interest expense was $6,900, research and development expenses were $30,200; net cash provided by operating activities was $75,900; income tax expense was $7,300; cost of goods sold was $158,700. Required: a. Calculate operating income for the period. Net income was $200,800 for the year. Throughout the year the company had outstanding 12,000 shares of $3,00,$100 par value preferred stock and 103,000 shares of common stock. Required: Calculate basic earnings per share of common stock for the year, (Round "Earnings per share-basic" to 2 decimal places.) The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2019: Required: a. Calculate the operating income for Spenser Co. for the year ended December 31, 2019. b. Calculate net income for the period. Kirkland Theater sells season tickets for six events at a price of \$84. In pricing the tickets, the planners assigned the leadoff event a value of $26 because the program was an expensive symphony orchestra. The last five events were priced equally, 1,130 season tickets were sold for the 2016 season. Required: a. Calculate the theater's earned revenue after the first three events have been presented. (Do not round intermediate calculations.) b. About 95% of the season ticket holders attended the first event. Subsequent events were attended by about 77% of the season ticket holders. Would the attendance data impact revenue recognition? Yes No Required: a. Calculate the operating income for Spenser Co. for the year ended December 31, 2019. b. Calculate the company's net income for 2019. Problem 9-24 (Algo) Prepare a statement of cash flows-indirect method LO 10 The financial statements of Pouchie Co included the following information for the year ended December 31,2019 (amounts in milions): Required: Complete the following statement of cash flows, using the indirect method. (Amounts to be deducted should be indicated by a minus sign. Enter your answers in militions (R.e., 5,000,000 should be entered as 5).)
