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True [87]
3 years ago
9

SPINX, INC. Statement of Earnings For the Year Ended December 31, CURRENT YEAR Net sales $ 4,395,253 Costs and expenses: Cost of

goods sold (2,821,455 ) Operating expenses (1,004,396 ) Interest revenue 15,797 Earnings before income tax $ 585,199 Income tax expense (204,820 ) Net earnings $ 380,379 Earnings per share $ 1.70 Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of $1,917,000 (dollar amounts in thousands, except earnings per share). a. Prepare an income statement for the year in a multiple-step format. b-1. Compute the gross profit rate. b-2. Compute the net income as a percentage of net sales. b-3. Compute the return on assets. b-4. Compute the return on equity for the year.
Business
1 answer:
Ratling [72]3 years ago
3 0

Answer:

a.) Income Statement for the year

Revenue

Operating Revenue  Net sales                                     $4,395,253

Less: Expenses

Cost of goods sold                                  ($2,821,455)

Operating expenses                                ($1,004,396)    ($3,825,851)

Earnings before Interest and Taxes                                  $569,402

Add: Other Income Interest revenue                                 $15,797

Earnings before Taxes                                                        $585,199

Less: Taxes                                                                          ($204,820)

Net earnings                                                                          $380,379

Earnings per share                                                                 $1.70

Number of shares = $380,379/$1.70 = 223,752 shares

b.) 1 Gross profit rate

= gross profit/Net sales

Gross profit = Net sales - Cost of goods sold = $4,395,253 - $2,821,555 = $1,573,698

Rate = $1,573,698/  $4,395,253 = 35.8045%

b.) 2 Net income as a percentage of net sales = ($380,379/$4,395,253) X 100 = 8.654%

b.) 3 Return on assets = (Net income/Average assets) X 100 = ($380,379/$2,575,000) X 100 = 14.772%

b.) 4. Return on equity for the year = (Net income/Average equity) X 100 = ($380,379/$1,917,000) X 100 = 19.8424%

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3 years ago
Jefferson Co. uses the following standard to produce a single unit of its product: Variable overhead $6 (2 hrs. per unit @ $3/hr
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Answer:

B. 6,000U

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The total variable overhead variance shall be calculated using the following formula:

Variable overhead variance=(Actual units produced*Standard hours per unit* Standard rate per hour) - (Actual variable production overhead cost of actual production)

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Standard hours per unit=2

Actual units produced=24,000

Actual variable production overhead cost of actual production=$150,000

Variable overhead variance=(24,000*2*3-150,000)

                                              =(144,000-150,000)

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3 years ago
Joe met with all of his department heads to listen to their opinions about buying a new machine. Although they all thought it wa
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Answer:

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Democracy is form of governing based on considerate importance to all people's opinion in group. It is opposite of 'autocratic' governing where leader has immense power & takes decision based on only own opinion.

Joe is considering opinion of all the members of organisation, while taking a decision of purchasing a machine. He paid attention to not only opinion of department heads, but also opinion of other employees. Despite of he & department heads perceiving it to be a good idea, employees considered it to be unnecessary. Thereafter Joe didn't purchase the machine. So, his decision encompassing all people's opinion depicts Democratic Leadership.

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Tancredi Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the be
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Answer:

Results are below.

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Fixed overhead= 33,500

Total variable overhead= (1.8*5,000) + (3*5,000)= 24,000

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (33,500 + 24,000) / 10,000

Predetermined manufacturing overhead rate= $5.75

<u>Now, we can determine the total cost for each Job:</u>

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