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VARVARA [1.3K]
3 years ago
6

Ronaldo Soccer Shop's income statement reports sales of $100,000; cost of goods sold of $46,000, operating expenses of $34,000,

interest expense of $15,000, income tax expense of $2,000, and net income of $3,000. If you were to perform a vertical analysis of this income statement, you would divide each of these income statement line items by:
a. $3,000

b. $46,000

c. $34,000

d. $100,000
Business
1 answer:
butalik [34]3 years ago
4 0

Answer:

d. $100,000

Explanation:

<u><em>Ronaldo Soccer Shop</em></u>

<u><em>Income Statement</em></u>

Sales  $100,000;

Cost of goods sold  $46,000,

Operating expenses $34,000,

Interest expense  $15,000,

Income tax expense  $2,000,

Net Income  $3,000

The vertical analysis of the income statement is performed by dividing each of these income statement line items by the total sales.

Vertical Analysis ( income Statement) = (Income Statement Item/ Total Sales )* 100

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Aliun [14]

Answer:

a. $7,505

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Explanation:

a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense

Using this formula

After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)

Let plug in the formula

After-tax cost = ($9,500 - ($21%*9500)

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Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505

B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense

Using this formula

After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)

Let plug in the formula

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After-tax cost =($9,500 - $2,660 )

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3 years ago
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Stress amongst law enforcement officials and public safety officials has become very crucial due to the following reasons:

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