Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement for the year ended December 31, 20X6, for Total Inc. contains the following information: Total Inc. Income Statement Year Ended December 31,

image text in transcribedimage text in transcribed

The income statement for the year ended December 31, 20X6, for Total Inc. contains the following information: Total Inc. Income Statement Year Ended December 31, 20X6 Sale $50,000 Cost of goods sold $ 30,000 Gross Profit $20,000 Operating Expenses $15,000 Profit from Operations $ 5,000 Income Tax Expense $ 3,000 Profit $ 2,000 Total Inc. comparative balance sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Total Assets 20x6 20X5 $ 1,200 $ 1,000 $ 300 $ 1,500 $ 5,000 $ 3,000 $12,000 $ 8,000 $(4,000) $(2,000) $14,500 $11,500 equipment Account Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity $ 1,000 $ 2,000 $10,000 $ 1,500 $14,500 $ 3,500 $ $ 8,000 $ $11,500 Additional Information: 1. Operating expenses include depreciation expense of $2,500 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $2,000 was sold for $1,500 cash 4. New equipment was purchased during the year for $5,000 5. Common shares were sold for $2,000 cash Round answers to fit 2 decimal places in all questions (in % questions a 0.12 is presented as 12%, so a 0.124 is rounded as 12% and 0.127 is rounded as 13%) Total return on assets at December 20X5 was: Multiple Choice Not enough data provided to calculate it Equal or below 16% Equal or above 69% Between 34% and 68% Between 17% and 33%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lawyers And The Proceeds Of CrimeThe Facilitation Of Money Laundering And Its Control

Authors: Katie Benson

1st Edition

1138744867, 9781138744868

More Books

Students also viewed these Accounting questions

Question

Cite the reasons employees join unions.

Answered: 1 week ago