Sales $ 15,000,000 Cost of goods sold Gross profit (10,800,000) $ 4,200,000 (8,000,000) $ (3,800,000) Operating expenses Operating loss
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A condensed income statement by product line for Warrick Reverage Inc.indicated the following for mango Cola for the past years
It is estimated that 30% of the cost of goods sold represents fixed
a. Prepare a differential analysis dated February 29 to determine whether Mango Cola should be continued (alternative 1) or discontinued (alternative 2)
b. Should Mango Cola be retained? Explain
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- Cost of Gross Operating Expenses Net Sales Net Profit ($) Goods Sold Margin ($) $336,500 $132,200 $ $109,000 $SERVICE REVMENUE $ 281,000 120,000 161,000 Sales revenue, net Cost of goods sold Gross profit OPERATING EXPENSES Selling expenses Wages expense - selling Fuel expense- selling Depreciation expense - selling Total selling expenses General and administrative expenses 15,000 20,000 45,000 80,000 Rent expense - administrative Office supplies expense - administrative 12,000 15,000 27,000 107,000 54,000 Total general and administrative expenses Total operating expenses Total income from operations OTHER EXPENSES Interest expense 2,000 52,000 13,000 %24 Total incorme before tax Incorme tax expense Net income 39,000 Eamings Per Share (EPS) 24 0.65 What is Carson's Bakery net profit margin? O 13.87% O 57.29% O 38.07% O 33.54%A B C D E Sales revenue $40,400 $75,400 $573,700 $34,800 $54,100 Cost of goods sold 19,200 50,500 273,600 19,400 30,500 Operating expenses 9,800 39,800 230,700 11,800 17,900 Total expenses 29,000 90,300 504,300 31,200 48,400 Operating profit (loss) $11,400 $(14,900) $69,400 $3,600 $5,700 Identifiable assets $34,500 $80,000 $501,100 $64,700 $50,400 Sales of segments B and C included intersegment sales of $20,000 and $101,000, respectively. (a) Determine which of the segments are reportable based on the: 1. Revenue test. 2 Operating profit (loss) test. 3. Identifiable assets test. Reportable Segment
- Shs. Sales Revenue 400,000,000 Less: cost of sales 253,000,000 Gross profit 147,000,000 Add: miscellaneous income 53,000,000 Gross profit 200,000,000 Less: Operating expenses Rent of office space 6,000,000 Electricity 3,200,000 Staff salaries & wages 2,000,000 Telephone and meals 7,000,000 Repairs 2,600,000 Sales promotions 3,600,000 Depreciation 10,000,000 Consultancy fees 5,000,000 Bad debts 7,500,000 Donations 22,000,000 -98,900,000 Surplus 101,100,000 Gift of Stationery from Picfare 26,000,000 Transport paid for the Gift 500,000 telephone and meals Meals 1,750,000 shareholders consumption 2625000 Telephone 2625000 5250000 Total Telephone and Meals 7,000,000 Donations Donations 1,000,000 NRM Donation 19000000 Donations 2000000…Cost of Operating Goods Sold ($) Margin Expenses (S) Gross Net Sales Net Profit S4,234,000 S $1,830,000 S $659,500Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense 99,000 Administrative expense* 44,500 Total selling and 143,500 administrative expenses Net operating income *Includes $22,000 of depreciation each month. April May June July $510,000 $1,040,000 $490,000 $390,000 357,000 728,000 343,000 273,000 312,000 147,000 117,000 153,000 9,500 $ b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale; 70% collected in the first month following the month of sale; and the remaining 20% collected in the second month following the month of sale. February's sales totaled $205,000, and March's sales totaled $245,000. 1. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable at March 31 for Inventory purchases during March total…
- Gain on Sales of Investment 5,000.00 Adversiting Expense 8,000.00 Sales 100,000.00 less: Cost of Goods Sold 20,000.00 Other Interest Expense 2,000 Gross Profit ? Net Profit ? Operating Income ?Income Statement for Bearcat Hathaway, 2022 Sales Less Cost of Goods Sold Gross Profit Less General & Administrative Expenses $10,000,000 $2,470,732 $7,529,268 $1,438,438 $2,656,922 $3,433,908 $924,283 $2,509,625 $527,021 $1,982,604 $312,519 Less Depreciation Earnings Before Interest and Taxes Less Interest Paid Taxable Income (or Earnings Before Taxes) Less Taxes (21% Tax Rate) Net Income Dividends Calculate the operating cash flow. $6,090,830 $1,304,007 $3,433,908 $5,563,809 O $1,982,604Revenue 11,600,000ExpensesSalaries & Wages 7,600,000Employer NIS Contribution 1,400,000Rent and Rates 2.400,000Interest 500,000Maintenance 120,000Depreciation 550,000Loss on Disposal of Vehicle 80,000Telephone 235,000Electricity 255,000General Expenses 700,000Donations 85,000Provision for Bad Debts 80,000Fines and Penalties 115,000Drawings 105,000 14,225,000Net Loss2,625,000 Notes to the Income Statement1. $55,000 of the drawings relate to Mrs. Shine and $50,000 to Mr. Rain2. Gross Salary for Mrs. Shine was $250,000 per month, and $200,000 for Mr. Rain. Bothpartners worked in the business during the year.3. The annual allowance was $450,000.4. The partners agreed to dispose of an old pick-up truck with a net book value of $350,000for $400,000. The pick-up had a tax written down value of $300,000.5. Donations of $60,000 were made to a local political party to fund its campaign. Theremainder was donated to an approved local children’s home.6. The partners could not determine if all…
- Operating expenses $ 49000 Sales revenue 208000 Cost of goods sold 157000 The gross profit rate would beGross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANYComparative Balance SheetDecember 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $ 11,000 Land 13,500 9,000 Total plant and equipment…22 Calculate the missing amounts. a b d e Net sales Cost of goods sold Gross profit from sales Operating expenses Profit (loss) $ 208,800 $ 165,000 $ 73,800 41,600 303,000 205,600 108,200 75,200 91,600 93,000 106,000 (31,000) (5,900) 57,000 (28,400)