1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Musya8 [376]
2 years ago
15

Sample T-Shirt Company, INC. needs help with their profit loss statement for their fourth quarter which lasts between October 1s

t and December 31st. They have sold 14,320 t-shirts this quarter at $20 a shirt. These shirts cost $3 to make. Of all of the shirt orders, 80 percent are shipped to customers. The company offers free shipping, so they must pay an average of $4 in postage per shirt shipped. The company has three employees who each make $80,000 a year. The company has general liability insurance which costs $600 a year, with equal payments every month. The company rents out a small production space for $600 a month. Each month the company pays $300 for web advertising, $200 for print advertising and $500 for television advertising. The company pays 15 percent of their profit in taxes.
Business
1 answer:
vfiekz [6]2 years ago
8 0

The preparation of the fourth quarter, October 1st to December 31st profit and loss statement for T-Shirt Company, INC., is as follows:

T-Shirt Company, INC.

<h3>Profit and Loss Statement</h3>

For the fourth quarter ended December 31

Sales revenue                        $286,400

Cost of goods sold                   (42,960)

Gross profit                            $243,440

Rental income                              1,800

Total income                         $245,240

Expenses:

Freight-out              $45,824

Salaries                     60,000

Insurance Expense        150

Advertising expense 2,950  (108,924)

Income before taxes             $136,316

Income tax rate (15%)              20,447

Net income                         $115,869

<h3>What is the profit and loss statement?</h3>

The profit and loss statement also known as the income statement is a periodic financial statement that summarizes the revenues, costs, and expenses for the specified period.

The statement is used to determine the profit or loss during the stated period.

<h3>Data and Calculations:</h3>

Number of shirts sold = 14,320

Selling price per t-shirt = $20

Sales revenue = $286,400 (14,320 x $20)

Product cost per t-shirt = $3

Cost of goods sold = $42,960 ($3 x 14,320)

Freight-out to customers = $45,824 ($4 x 14,320 x 80%)

Salaries Expense of employees for the quarter = $60,000 ($80,000 x 3 x 1/4)

General Liability Insurance Expense = $150 ($600/4)

Rental income for the quarter = $1,800 ($600 x 3)

Web = $900 ($300 x 3)

Print = $400 ($200 x 3)

Television = $1,500 ($500 x 3)

Advertising expense = $2,950

Income tax rate = 15%

Learn more about the profit and loss statement at brainly.com/question/24498019

You might be interested in
A company received an order from a customer in June for services to be provided. Those services were provided in July, and the c
scZoUnD [109]

Answer:

B. July

Explanation:

The principle of revenue recognition arises whenever the income is realized or earned whether cash is collected or not and it also supports the accounting accrual basis. Realizable here means that the customer obtains the product however the payment is made afterward.

So, in the given case, the service is provided in the July month and the same is to be recorded on the July month

8 0
3 years ago
In the past, manufacturer's representatives did not have real-time inventory data about the products they were selling. Today, m
Airida [17]

Answer:

sharing information across the organization.

Explanation:

ERP software systems allow employees accurate and timely access to real time information about the company's areas that they work with. This can optimize how the company operates and increase cooperation between different areas. Also unnecessary operations and delays are eliminated.

Before, salespeople had to continuously check with inventory department about what products were available and ready to be sold, which caused delays and time is money.

6 0
3 years ago
According to the human relations approach, employee commitment to an organization is gained by ______. Select one: 1. economic m
NemiM [27]

Answer:

"4"

Explanation:

Human relations approach to employees management believes that employees are not only motivated by financial incentives but other factors like praises , interpersonal relationship and delegation of roles and this in return , boost their commitment.

The managers are involved in active support of employees' growth and performance.

It underscores the importance interpersonal and social relationship in a work environment.

5 0
3 years ago
true or false Deflation can be differentiated from disinflation in that the deflation rate is always negative while the disinfla
Ghella [55]

Answer:

True

Explanation:

The deflation arise when there is a decline in the general level of the price in the overall economy. It could be said as a negative rate of inflation

On the other hand, the disinflation arise when the inflation rate is the decline over time but it would remain positive

Therefore the given statement is true

hence, the same is to be considered

7 0
2 years ago
Paul just received his bank statement in the mail. The ending balance on the account shows that he has $385.22 available. Howeve
irinina [24]
The difference is $210.84 in Pending transactions.
6 0
3 years ago
Other questions:
  • Which method is the most efficient method to use to solve x^2+6x-7=0?
    5·2 answers
  • Berning Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimate
    6·1 answer
  • What is brad's opportunity cost of producing one pound of beef?
    6·1 answer
  •  Explain why eight feet is the maximum distance that should be between two pieces of seating in a room.
    8·1 answer
  • The following transactions were completed by the company a. The owner invested $19,000 cash in the company in exchange for its c
    8·1 answer
  • Richland’s real GDP per person is $10,000, and Poorland’s real GDP per person is $5,000. However, Richland’s real GDP per person
    8·1 answer
  • Which of the following is not true about a good resume?
    12·1 answer
  • Identify 3 advantage of sales promotion
    14·1 answer
  • An advantage of an enterprise resource planning (ERP) system is that to implement it, an organization need not attempt to do eve
    14·1 answer
  • Question 10 of 10: you've been meaning to fix those rotted boards on your porch for years. finally, last week the deck gave way.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!