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# Income Statement

### Budgeted Contribution Income Statement

Please advise me on how to do the following problem: If a new division is created in a company (see attached for financials) then the headcount and related costs for this new division (research and development, sales and marketing) are projected to amount to \$4.5 million. Using this and the data provided, prepare the budgeted

### Contribution margin format income statement / Calculating Break even-point

Prepare a contribution margin format income statement-calculate break-even point. Presented here is the income statement for Edwards Co. for February. Sales \$80,000 Cost of Goods Sold \$48,000 Gross Profit \$32,000 Operating Expenses \$21,000 Operating Income \$10,800 Based on an analysis of cost behavior patterns, it has been

### Contribution Margin: Formating an Income Statement

Shown below is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Revenues \$160,000 Cost of goods sold (\$16,000 + \$3.20/unit) 80,000 Gross profit \$80,000 Operating expenses: Selling (\$4,500 + \$1.40/unit) 32,500 Administration (\$7,500 + \$1.00/unit) 27,500 Operatin

### Break Even, Forecast Contribution & Margin Income Statement

22-6A - This year Cairo Company sold 35,000 units of its only product for \$16 per unit. Manufacturing and selling the product required \$120,000 of fixed manufacturing costs and \$180,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material......................................................

### Evaluate the elements of a typical income statement and explain which is most likely to present challenges and why. 2. Compare and contrast the use of income statements and balance sheets. 3. Explain the relationship between a statement of cash flow and working capital. 4. Recommend a one change that would make income statements, balance sheets or statement of cash flows more useful.

Need help with the following questions with references. Need at least two paragraphs per question. 1. Evaluate the elements of a typical income statement and explain which is most likely to present challenges and why. 2. Compare and contrast the use of income statements and balance sheets. 3. Explain the relationship

### Accrual Basis Net Income; Materiality, Cash Flow Statement

1. Molly's Auto Detailers maintains its records on the cash basis. During 2011, Molly's collected \$72,000 from customers and paid \$21,000 in expenses. Depreciation expense of \$5,000 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased \$4,000, prepaid expenses decreased \$2,000,

### In her preliminary review of the Income Statement printed from the company's computer accounting software, the controller of ACME Corp. notices an unexpected increase in the Supplies Expense. In order to determine what transactions comprised the balance of the Supplies Expense account, which of the following should the controller examine first? 1. The Check Register 2. The Accounts Payable Journal 3. The Trial Balance 4. The General Ledger

In her preliminary review of the Income Statement printed from the company's computer accounting software, the controller of ACME Corp. notices an unexpected increase in the Supplies Expense. In order to determine what transactions comprised the balance of the Supplies Expense account, which of the following should the controlle

### Differences between absorption and variable costing income statements.

Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year is presented below: Units in beginning inventory 0 Units produced 9,000 Units sold 7,000

### Pro Forma Income Statement

Using Excel, create a three year Pro Forma income statement and determine break even point on the data attached. Based on the organization you have created a. Using Excel, create a three year Pro Forma income statement for your organization (or product/service). b. What will be your financial break-even point? Expected s

### As of January 31, Hudson Corporation owes \$600 to U-Rent-It for equipment used during January. If no adjustment is made for this item at January 31, how will Hudson's financial statements be affected? 1 Cash will be overstated at January 31. 2. Net income for January will be overstated. 3. Stockholders' equity will be understated. 4. The financial statements will be accurate since the \$600 does not have to be paid yet.

As of January 31, Hudson Corporation owes \$600 to U-Rent-It for equipment used during January. If no adjustment is made for this item at January 31, how will Hudson's financial statements be affected? 1 Cash will be overstated at January 31. 2. Net income for January will be overstated. 3. Stockholders' equity will be

### Activity Based Cost In and Income Statement

Gomtek Auto Performance Parts Ltd. Domenic Cianflone, MBA, PhD, FCMA (see attached file) Gomtek Auto Performance Parts Ltd. is an importer of after-market auto parts, located in Toronto. Since its inception in 2001, the company has developed a reputation for sourcing rare performance parts (mainly exhaust systems) for luxu

### Partin Company: Prepare multiple-step income statement, compute profit margin ratio

The following information is available for Partin Company: Sales \$598,000 Sales Returns and Allowances 20,000 Cost of Goods Sold 398,000 Selling Expense 69,000 Administrative Expense 25,000 Interest Expense 19,000 Interest Revenue 20,000 Instructions (1). Use the above informati

### Describe the process of computing a corporation's taxable income assuming the corporation must use GAAP to determine its book income.

Describe the process of computing a corporation's taxable income assuming the corporation must use GAAP to determine its book income.

### Computing Net Income using Retained Earnings

I am having trouble trying to figure out net income for a company if the company had 100,000 shares of common stock with a balance of 185,000, retained earnings of 710,000 with stockholders equity of 895,000. The company paid a dividend of \$80,000 and had \$795,000 at the end of the year retained earnings?

### Your friend comments, 'I just ignore the income statement when I'm making an investment decision. All I care about is the cash, so that the company can pay me dividends. The balance sheet tells me about the cash the company's got; the cash flow statement tells me about its changes in cash. Who cares about the income statement? It's just a bunch of inaccurate stuff loaded with estimates.' Do you agree with your friend's remarks about the income statement and its lack of importance? Explain why or why not. 2. Why is an income statement divided into so many different categories? Couldn't all the revenues and all the expenses each be totaled and then subtracted from each other to determine net income? Wouldn't this make accounting easier to learn? Explain.

1. Your friend comments, 'I just ignore the income statement when I'm making an investment decision. All I care about is the cash, so that the company can pay me dividends. The balance sheet tells me about the cash the company's got; the cash flow statement tells me about its changes in cash. Who cares about the income statement

### Budgeted Income Statement

Julian Enterprises reports the year-end information from 2010 as follows: Sales (100,000 units) - \$250,000 Less: cost of goods sold - \$150,000 Gross profit - \$100,000 Operating expenses (includes \$10,000 of depreciation) - \$60,000 Net income - \$ 40,000 Julian is developing the 2011 budget. In 2011 the company would li

### Cheat sheet for income statement

Basic Cheat Sheet for Understanding an Income Statement. Included formulas for Break Even Point, Revenue, Safety Margin, Leverage and sample income statement.

### Bruno Manufacturing: Complete a CVP income statement

Bruno Manufacturing Inc. has sales of \$2,200,000 for the first quarter of 2010. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold \$920,000 \$440,000 Selling expenses 70,000 45,000 Administrative expenses 86,000 98,000 Complete the CVP inc

### Contribution Margin & Income Statement

Below find production and sales information for Herrestad Company. Product information Beginning inventory 0 Units produced 10,000 Units sold 8,000 Selling price per unit \$300 Variable costs per unit Direct material

### Prepare an income statement in the contribution margin format

Shown below is an income statement in the traditional format for a firm with a sales volume of 20,000 units. Revenues \$160,000 Cost of goods sold (\$16,000 + \$3.20/unit) 80,000 Gross profit \$80,000 Operating expenses: Selling (\$4,500 + \$1.40/unit) 32,50

### Here are the comparative income statements of Winfrey Corporation. Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base.

I need help with this problem Here are the comparative income statements of Winfrey Corporation. WINFREY CORPORATION Comparative Income Statements For the Years Ended December 31 2010 2009 Net sales \$598,000 \$52

### Income Statement Closing Entries

Presented is information related to Rogers Co. for the month of January 2010. Ending inventory per perpetual records \$23,660 Ending inventory actually on hand 23,106 Cost of goods sold 227,700 Freight out 7,640 Insurance expense 12,760 Rent expense 26,080 Salary expense 63,010 Sales discounts

### A Segmented Income Statement

Prepare a segmented income statement (showing the income for each product and the total) for the company. Use ABC to allocate all fixed costs to the two products. Background information Total Prod A Prod B Beginning inventory 0 Units produced 10,000 2,500 7,5

### Success Manufacturing Income Statements

Success Manufacturing sold 540,000 units of its product for \$72 per unit in 2011. Variable cost per unit is \$54 and total fixed costs are \$2,140,000. a. Prepare a) contribution margin income statement, and b) an income statement. b. If a new piece of machinery increases the fixed costs to \$6,330,000 annually, but reduce

### Bovine Company: Prepare a contribution income statement

See the attached file for proper format. Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement below: Sales \$ 1,596,000 Variable expenses 578,500 ________________________________________ __

### Colfax Dry Cleaners - Income Statement, Retained Earnings and Balance Sheet

Colfax Dry Cleaners is owned and operated by Maria Acosta. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities and capital stock of the business on November 1, 2010 are as follows:

### Yarrick Company - Common income statement with analysis of profitablity

See the attached for better formatting.... 3.11. Income statements for Yarrick Company for the years ending December 31, 2007, 2006, and 2005 are shown below. Prepare a common-size income statement and analyze the profitability of the company. Yarrick Company Income Statements for the Years Ending December 31, 2007, 2

### Bloom Corporation had the following 2010 income statement. Sales \$200,000 Cost of goods sold 120,000 Gross profit 80,000 Operating expense (including depreciation of \$21,000) 50,000 Net income \$30,000 The following accounts increased during 2011: accounts receivable \$12,000; inventory \$11,000; accounts payable \$13,000. Complete the cash flows from operating activities section of Bloom's 2011 statement of cash flows using the direct method. (List amounts from largest to smallest eg 10, 5, 3, 2.) Cash flows from operating activities Net cash provided/used by operating activities

Bloom Corporation had the following 2010 income statement. Sales \$200,000 Cost of goods sold 120,000 Gross profit 80,000 Operating expense (including depreciation of \$21,000) 50,000 Net income \$30,000 The following accounts increased during 2011: accounts receivable \$12,000; inventory \$11,000; a

### Frederick Industries changed from the double-declining balance to the straight-line method in 2010 on all its plant assets. There was no change in the asset's salvage values or useful lives. Plant assets, acquired on January 2, 2007 had an original cost of \$2,400,000, with a \$100,000 salvage value and an 8-year estimated useful life. Income before depreciation expense was \$370,000 in 2009 and \$300,000 in 2010. Instructions (a) Record the journal entry o record the change in depreciation method in 2010. Description Depreciation Expense \$ Accumulated Depreciation-Plant Assets \$ (b) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2009 and 2010. Income before depreciation expense 2010\$ 2009\$ Depreciation expense 2010\$ 2009\$ Net income 2010\$ 2009\$

Frederick Industries changed from the double-declining balance to the straight-line method in 2010 on all its plant assets. There was no change in the asset's salvage values or useful lives. Plant assets, acquired on January 2, 2007 had an original cost of \$2,400,000, with a \$100,000 salvage value and an 8-year estimated useful

### Should an accountant be interested the company's vision and value statement? I have seen instances where the vision and value statement was followed by the company employees and their management. I have seen others where the statement was used for outsiders to read but not one that management followed. Is it better to have a statement that is not followed than having none at all? Should a company that has an unwritten vision and value statement put it into writing? Would you rather work for a company that had a vision and value statement than one who did not?

Should an accountant be interested the company's vision and value statement? I have seen instances where the vision and value statement was followed by the company employees and their management. I have seen others where the statement was used for outsiders to read but not one that management followed. Is it better to have