All categories

2 years ago

Explain the equation for the income statement. What are the three major items reported on the income statement?

1 answer:

4 0

The equation for the income statement is Revenues - Cost of goods = Net income. The three major items reported on the income statement are net income, gross profits, and operating income.

The income statement is a statement of the profits and losses of a firm. It consists of three income statements. The Net income is derived by deducting the expenses of the firm from its revenues (Net income = Revenue - Expenses). It may also be calculated by adding the operating income with the non-operating items.

Gross profit is arrived at by subtracting the expenditure made on the products that were sold from the revenue of a firm. The Operating income is the result of subtracting the operating expenses from the gross profit.

To learn more about income statement : brainly.com/question/14308954

#SPJ4

You might be interested in

If the exchange rate is 8 moroccan dirhams per u.s. dollars, a crate of oranges costs 400 dirhams in the moroccan capital of rab

strojnjashka [21]

the real exchange rate is greater than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the U.S.

8 0

4 years ago

A practitioner may perform an agreed-upon procedures engagement on prospective financial statements provided that which of the f

Marat540 [252]

Answer:

Option b is correct

Explanation:

The requirement of this service is to be independently derived because the procedures vary according to needs of the parties involved in the agreement.

6 0

3 years ago

ncome Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engine

Mnenie [13.5K]

Answer:

Income statement according to the absorption costing

Sales 2,600,000

Less Cost of Goods Sold

Opening Stock 0

Add Cost of Goods Manufactured

Direct materials 1,218,000

Direct labor 522,000

Variable factory overhead 87,000

Fixed factory overhead 130,500

Less Closing Stock (1,957,500/4,350)×350 (157,500) 1,800,000

Gross Profit 800,000

Less Period Costs :

Selling and administrative expenses:

Variable selling and administrative expenses (60,000)

Fixed selling and administrative expenses (25,000)

Net Income 715,000

Explanation:

Product/Manufacturing Cost - Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads

Period Cost - Absorption Costing = All Non - Manufacturing Costs

7 0

3 years ago

Alma owns fifty shares of common stock in Alpha Corporation. Alma also owns eighty shares of preferred stock in the same corpora

andreyandreev [35.5K]

Given the situation described above, Alma will be able to cast 50 votes.

This is because common stock gives voting rights to shareholders. And given that Alma has 50 shares of common stocks. Therefore, he would be able to cast 50 votes.

On the other hand, preferred stocks give no voting rights to shareholders.

However, preferred shareholders have preference over a company's revenue or earnings, which implies that they are paid dividends before common shareholders.

Hence, in this case, it is concluded that the correct answer is "50 votes."

Learn more here: brainly.com/question/3518273

3 0

2 years ago

Vipsana's Gyros House sells gyros. The cost of ingredients (pita, meat, spices, etc.) to make a gyro is $2.00. Vipsana pays

andrezito [222]

Answer:

The average fixed cost is $2.4.

Explanation:

Vipsana's Gyros House sells gyros.

The cost of ingredients to make a gyro is $2.00.

Vipsana pays her employees $60 per day.

She also incurs a fixed cost of $120 per day.

The cost incurred on ingredients and workers is a variable cost.

The total fixed is thus $120.

The average fixed cost for 50 gyros

= $\frac{TFC}{Q}$

= $\frac{120}{50}$

= $2.4

5 0

3 years ago