Analysis and Preparation of Income Statement The selling expenses of Caribou Inc. for 2015 are 13% of sales. General expenses, excluding doubtful ac- counts, are 25% of cost of goods sold but only 15% of sales. Doubtful accounts are 2% of sales. The begin- ning inventory was $136,000, and it decreased 30% during the year. Income from operations for the year before income taxes of 30% is $160,000. Extraordinary gain, net of tax of 30%, is $21,000. Prepare an income statement, including earnings-per-share data, giving supporting computations. Caribou Inc. has 130,000 shares of common stock outstanding.

Analysis and Preparation of Income Statement The selling expenses of Caribou Inc. for 2015 are 13% of sales. General expenses, excluding doubtful ac- counts, are 25% of cost of goods sold but only 15% of sales. Doubtful accounts are 2% of sales. The begin- ning inventory was $136,000, and it decreased 30% during the year. Income from operations for the year before income taxes of 30% is $160,000. Extraordinary gain, net of tax of 30%, is $21,000. Prepare an income statement, including earnings-per-share data, giving supporting computations. Caribou Inc. has 130,000 shares of common stock outstanding.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

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