VWX Company Financial Data Description Amount Total Sales $1,500,000 Sales Returns $45,000 Net Sales $1,455,000 Cost of Goods Sold $750,000 Operating Expenses $350,000 Administrative Expenses $80,000 Interest Expense $20,000 Tax Rate 25 Requirements Prepare an income statement Calculate the gross profit margin Determine the amount of taxes paid Evaluate the effect of a 10 increase in operating expenses on net income Discuss the impact of interest expense on the company's profitability FullscreenBoldItalicUnderlineStrikethroughSubscriptSuperscriptFont Family Arial Georgia Impact Tahoma Times New Roman Verdana Font Size 8 9 10 11 12 14 18 24 30 36 48 60 72 96 Inline Style Big Red Small Blue Paragraph Style Gray Bordered Spaced Uppercase Paragraph Format Normal Heading 1 Heading 2 Heading 3 Heading 4 Code Align Align Left Align Center Align Right Align Justify Ordered ListUnordered ListDecrease IndentIncrease IndentInsert ImageInsert TableSpecial CharactersInsert Horizontal LineSelect AllClear FormattingUndoRedo Clear Formatting Selected Clear FormattingUnlicensed copy of the Froala Editor Use it legally by purchasing a license Type something MNO Ltd has the following transactions for the month of July 2023 Date Transaction July 1 Purchased office supplies on account for $1,200 July 3 Paid $600 for utilities July 7 Sold goods costing $3,500 for $5,000 on account July 10 Received $2,500 from customers on account July 15 Paid $800 for insurance expenses July 20 Declared and paid dividends of $500 Requirements Record the journal entries for the transactions Post the journal entries to the ledger Prepare a trial balance as of July 31, 2023 Prepare an income statement for July 2023 Discuss the significance of dividends on the company's financial health

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 05, 2024

VWX Company Financial Data: Description Amount Total Sales $1,500,000 Sales Returns $45,000 Net Sales $1,455,000 Cost of Goods Sold $750,000 Operating Expenses $350,000 Administrative Expenses

VWX Company Financial Data:

Description	Amount
Total Sales	$1,500,000
Sales Returns	$45,000
Net Sales	$1,455,000
Cost of Goods Sold	$750,000
Operating Expenses	$350,000
Administrative Expenses	$80,000
Interest Expense	$20,000
Tax Rate	25%

Requirements:

Prepare an income statement.
Calculate the gross profit margin.
Determine the amount of taxes paid.
Evaluate the effect of a 10% increase in operating expenses on net income.
Discuss the impact of interest expense on the company's profitability.

FullscreenBoldItalicUnderlineStrikethroughSubscriptSuperscriptFont FamilyFont SizeInline StyleParagraph StyleParagraph FormatAlignOrdered ListUnordered ListDecrease IndentIncrease IndentInsert ImageInsert TableΩSpecial CharactersInsert Horizontal LineSelect AllClear FormattingUndoRedo????????Clear Formatting????Selected Clear FormattingUnlicensed copy of the Froala Editor. Use it legally by purchasing a license.

Type something

MNO Ltd. has the following transactions for the month of July 2023:

Date	Transaction
July 1	Purchased office supplies on account for $1,200.
July 3	Paid $600 for utilities.
July 7	Sold goods costing $3,500 for $5,000 on account.
July 10	Received $2,500 from customers on account.
July 15	Paid $800 for insurance expenses.
July 20	Declared and paid dividends of $500.