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ss7ja [257]
3 years ago
15

The following information was extracted from the 2020 financial statements of Max Company: Income from continuing operations bef

ore income tax $705,000 Selling and administrative expenses 480,000 Income from continuing operations 495,000 Gross profit 1,350,000 The amount reported for other expenses and losses is
a. $210,000
b. $15,000.
c. $165,000.
d. $225,000.
Business
1 answer:
Bezzdna [24]3 years ago
5 0

Answer:

c. $165,000.

Explanation:

Gross profit $1,350,000

Selling and administrative expenses $480,000

Income from continuing operations before income tax $705,000

Income from continuing operations 495,000

Total Expenses = Gross Profit - Income from continuing operations before income tax

Total Expenses = $1,350,000 - $705,000 = $645,000

Other Expenses = Total Expenses - Selling and administrative expenses

Other Expenses = $645,00 - $480,000 = $165,000

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Drag the tiles to the correct boxes to complete the pairs. Match the components of an income statement with their description.
Korolek [52]

Answer:

see below

Explanation:

<u>1. COGS</u>

Expenses incurred for manufacturing or obtaining the products and materials sold during a given period.

COGS are the direct expenses in the production process. They include labor, materials, and direct overheads.

<u>2. Gross profit </u>

Balance arrived at after deducting the expenses incurred on the goods sold from the revenue earned by selling the goods.​

The revenues must exceed the expenses for a business to realize a gross profit. Otherwise, it will be a loss.

3<u>. Operating expenses</u>

Expenses that a business incurs to carry out its daily operations. They are the indirect cost of production. Examples include insurance, administrative, and security costs.

4. <u>Selling expenses </u>

Money spent on advertising, traveling, and promotions. These are the costs incurred in the selling process.

5 0
3 years ago
In January, Stitch, Inc. adopted the dollar-value LIFO method of inventory valuation. At adoption, inventory was valued at $50,0
Dennis_Churaev [7]

Answer:

B. $83,000

Explanation:

Inventory value at adoption = $50,000

Increase in inventory using base year price = $30,000

Current year Price increase = 10%

Increase price = $30,000 + ( $30,000 x 10% )

Increased price inventory = $30,000 + $3,000

Increased price inventory = $33,000

Amount of Inventory reported on balance = Inventory value at adoption + Increase price Inventory

Amount of Inventory to be reported on balance = $50,000 + $33,000

Amount of Inventory to be reported on balance = $83,000

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3 years ago
Financial literacy is the knowledge about
hammer [34]

Money. I'm doing the same subject right now. Feel free to message me if you have any questions.

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3 years ago
Gracies insurance premiums are $131 per month. This year she also paid a 500 deductible and 20% of 3200 for a minor accident. Ho
olga55 [171]

131 x 12= 1,572

500 + 1,572 + 640 (20% of 3,200)

= 2,712$

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3 years ago
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D - you write email for others to read. Composing a well-written email makes it easier on the recipient, showing your consideration for them.
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3 years ago
Read 2 more answers
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