Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 1, Problem 20E
Summary Introduction
Concept introduction:
Income statement is prepared to know the profitability of the business. Income statement shows the revenue generated, expenses incurred and net income earned by the business during a particular period.
To prepare: The income statement for the year.
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The Cullumber Supply Company reported the following information for 2017. Prepare a common-size income statement for the year ended June 30, 2017. (Round answers to 1 decimal place, e.g. 52.7%.)
Cullumber Supply CompanyIncome Statement for the Fiscal Year Ended June 30, 2017($ thousands)
% of Net Sales
Net sales
$2,111,000
enter percentages of net sales %
Cost of goods sold
1,464,000
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Selling and administrative expenses
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Nonrecurring expenses
27,600
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Earnings before interest, taxes, depreciation, and amortization (EBITDA)
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117,000
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Earnings before interest and taxes (EBIT)
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Earnings before taxes (EBT)…
The financial statements of ConAgra Foods, Inc.’s 2017 annual report disclose the following information.
(in millions)
2017
2016
2015
Year-end inventories
$934.2
$1,044.1
$1,642.6
Fiscal Year
2017
2016
Net sales
$7,826.9
$8,664.1
Cost of goods sold
5,484.8
6,234.9
Net income
648.0
(665.9)
Compute ConAgra’s (a) inventory turnover and (b) the average days to sell inventory for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 7.6 and average days to sell inventory to 0 decimal places, e.g. 65.)
2017
2016
(a)
Inventory turnover
______________
times
______________
times
(b)
Average days to sell inventory
______________
days
______________
days
You are given the following information about Sheridan Plumbing Company. Revenues in 2017 totaled $ 908, depreciation expenses $ 77, costs of goods sold $ 374, and interest expenses $ 71. At the end of the year, current assets were $ 136 and current liabilities were $ 117. The company has an average tax rate of 34 percent. Calculate its net income by setting up an income statement. (Round answers to 2 decimal places, e.g. 15.25)
Sheridan Plumbing CompanyIncome Statement
Chapter 1 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License