Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Preparing an income statement) Prepare an income statement and a common-sized income statement from the following information.
Click on the following icon in order to copy its contents into a spreadsheet.)
Sales
Cost of goods sold
General and administrative expense
Depreciation expense
Interest expense
Income taxes
Complete the income statement below. (Round to the nearest dollar. NOTE: You may input expense acc as negative values.)
Income Statement
Gross profits
Total operating expenses
Operating income (EBIT)
Earnings before taxes
Net income
$525,863
199,246
60,236
8,305
11,860
98,486
$
SS
I have attached the Income Statement I will be referring to. Please explain and clarify
1) What account does Cost of Goods Sold go under and what is its balance?
2) How do you get your Gross Profit
3) Do you always subtract Total Expenses from Gross Profit to get your Operating Income?
4) What account does Interest Expense go and what balance does it carry?
1) What type of account is Cost of Goods Sold? What statment does it appear on? Is it a Real or Nominal account? Is it temporary? Is it a CR or DR balance.2) I have read on the internet that it is an expense, however looking at my workbook showing the Income Statement it is lilsted under Sales & Revenues and added together to obtain Gross Profit.
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- Refer to Apple’s balance sheet and income statement. What does the company title its inventory account? Does the company present a detailed calculation of its cost of goods sold?arrow_forwardA) Calculate the total Current Assets, Total Assets, Total Liabilities and Equity, Gross profit, Operating Profit, Earning before Taxes, Taxes and Net Income after Tax on the Balance Sheet and Income statement below (rows highlighted in yellow) B) Calculate the percentage of each line item under Assets to the Total Assets, each line item under Liabilities and Equity to the total Liabilities and Equity, and Cost of Goods Sold, SG&A and Interest Expense to Revenue (blue boxes)arrow_forwardYOu skipped this question In the previous attempt. A1 The list below shows select accounts for Reading Readiness Company as of B D E G. 1 The list below shows select accounts for Reading Readiness Company as of January 31, 20X1. (Accounts are in alphabetical order.) 3 Accounts Payable $ 4. 8,088 Accounts Receivable 6,960 6 Cash 13,445 Equipment 4,800 8 Insurance Expense 1,350 Operating Expense Other Expenses 11,800 10 3,482 11 Other Revenues 6,050 12 4,800 Rent Expense Salaries Expense 6,882 17,200 15,400 13 14 Short-term Notes Payable 15 Test Prep Revenue 16 9,100 Tutoring Revenue Unearned Revenue 17 1,046 8 9 Required: P 1. Prepare an Income Statement for the month ended January 31, 20X1. Use cell references 1 to select account titles and amounts to be included on the income statement. Note: List revenues and expenses in order of largest to smallest dollar amounts. 2. After entering the formula in cell C42, use the Excel IF function to label cell B42 as either "Net Income" or Sheet1…arrow_forward
- Which is the CORRECT order for items to appear on the income statement? Group of answer choices sales revenue, gross profit, net income, operating expenses cash, accounts receivable, inventory, property/plant/equipment, intangible assets sales revenue, operating expenses, gross profit, net income sales revenue, cost of goods sold, gross profit, operating expenses sales revenue, gross profit, cost of goods sold, operating expensesarrow_forwardwhich is the effect of the following transaction on the basic accounting equation? Bought equitment for 2500$ using casharrow_forwardDirections: Read the given sentences carefully. Select the best answer from the choices given below. Write your answer on the space provided before each item. Gains Purchases Sales Income Gross Profit Sales Discount Selling expenses Professional Fee Net Income Operating expenses Sales return Cost of Goods Sold Service Income 1. An example of service revenue. 2. The revenue generated from the sale of products. 3. It is computed by deducting the cost of sales from net sales. 4. It is used to describe revenue derived from the rendering of services. 5. A type of income derived from the other activities of the business. 6. The account used to report the acquisitions of merchandise for sale. 7. It represents the actual cost of inventories that the company was able to sell. 8. These are expenses that are directly related to the main purpose of a merchandising business 9. A contra-sales account that is used to report the amount of discount given to or taken by the customers. 10. It refers…arrow_forward
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