Answer:
The given case relates to the movie Enron. In the movie, Jeffrey Skilling engineered transactions and falsely boosted stock values, allowing various stakeholders to earn higher returns at first. Arthur Anderson, the corporation's auditor, was involved in the investment fraud. Thus, initially to increase the share price the defaulters boosted their earnings.
The net income of Cookies by casey is $123,240
What is net income?
The net income of the company is the excess of its sales revenue over all costs of the running the business, which includes, the costs of sale, interest expense, depreciation as well as the taxes payable to the government authority which is 21% of profits before tax in this case.
Profit before tax=sales-costs of sale-depreciation-interest expense
sales=$487,000
costs of sale=$263,000
depreciation=$42,000
interest expense=$26,000
profit before tax=$487,000-$263,000-$42,000-$26,000
profit before tax=$156,000
tax rate=21%
net income=profit before tax*(1-tax rate)
net income=$156,000*(1-21%)
net income=$123,240
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Answer:
119.4% for 2017 and 100.0% for 2016.
Explanation:
2017 2016
Net sales $276,200 $231,400
Cost of goods sold $151,900 $129,590
Operating expenses $55,240 $53,240
Net earnings $27,820 $19,820
since we are using 2016 as a base year, the $231,400 in net sales represent 100%, so the trend percentage for 2017 = net sales 2017 / net sales 2016 $276,200 / $231,400 = 1.1936 = 119.4% or a 19.4% increase.
The base year's amount will always be 100% or 1, and the trend percentages will change relative to that year.
Answer:
$559,020
Explanation:
The computation of net sales is shown below:-
Total sales = $640,000
Sales discount = $14,500 + $1,450
= $15,950
Sales return = $39,000 + $4,680
= $43,680
Sales allowance = $19,000 + $2,530
= $21,350
So,
Net sales = Total sales - Sales discount - Sales return - Sales allowance
= $640,000 - $15,950 - $43,680 - $21,350
= $559,020
Therefore for computing the net sales we simply applied the above formula.
