Do you like shake it off

E4.5 (LO 2) (Multiple-Step and Single-Step Statements) Two accountants for the firm of Elwes and Wright are arguing about the me

PtichkaEL [24]

Answer:

In the Multistep income it's possible to segregate the operative expenses and revenues of the non operative, it also shows the gross profit, which is

the Net Sales Revenues less the Cost of Goods Sold.

First it's shown the Gross Profit, then substracted the operating expenses

to arrive at operating income.

Finally with the non operating movements we have the net Income After Taxes and with the taxes expenses we have the Net Income of the company.

By the way in the Single Step Income doesn't exist a segregation in the expenses, it doesn't break the expenses into cateogories, so all the expenses are listed together.

It means the financial statement doesn't give much information to the external users about the company operations.

Explanation:

2020 Multi Step - Income Statement

$ 96.500,000 Sales

$ 96.500,000 Net Sales Revenues

-$ 6.480,000 Depreciation of sales equipment

-$ 60.570,000 Cost of goods sold

-$ 67.050,000 Cost of goods sold

$ 29.450,000 Gross PROFIT

-$ 7.980,000 Sales commissions

-$ 4.900,000 Administrative expense Officers’ salaries

-$ 3.960,000 Depreciation of office furniture and equipment

-$ 2.690,000 Selling expense Delivery expense

-$ 19.530,000 Operating Expenses

$ 9.920,000 INCOME FROM OPERATIONS

$ 17.230,000 Rent Revenue

$ 17.230,000 Other Revenues and Gains:

-$ 1.860,000 Interest Expenses

-$ 1.860,000 Other expenses and Loss

$ 25.290,000 NET INCOME AFTER TAXES

-$ 9.070,000 Income Tax Expenses

$ 16.220,000 Net INCOME

2020 Single Step - Income Statement

$ 96.500,000 Sales

$ 17.230,000 Rent Revenue

$ 113.730,000 TOTAL REVENUES

-$ 60.570,000 Cost of goods sold

-$ 10.440,000 Depreciation Expense

-$ 12.880,000 Wage Expenses

-$ 2.690,000 Supplies Expenses

-$ 1.860,000 Interest Expenses

-$ 88.440,000 TOTAL EXPENSES

-$ 9.070,000 Income Tax Expenses

$ 16.220,000 Net INCOME

6 0

4 years ago

Bill marks up his goods 38% on cost. A Nikon camera cost Bill $410. What is Bill's selling price? (round to the nearest cent)

mezya [45]

Answer:

$565.8

Explanation:

Selling price is equal to cost price plus mark-up

In this case:

Cost of the Nikon camera is $410

The preferred mark-up is 38%

Actual markup is 38% of $410

=38/100 x $410

=0.38 x $410

=$155.8

Selling price = $410 + $ 155.8

=$565.8

6 0

4 years ago

2. Winners and losers from free trade Consider the market for meekers in the imaginary economy of Meekertown. In the absence of

loris [4]

Answer:

In the absence of international trade, the domestic price of meekers is $40. Suppose that the world price of meekers is $39.

When the world price is lower than the domestic price the country imports and domestic price goes down

If Meekertown allows free trade,then it will import meekers

Meekertownian consumers were worse off without free trade than they are with it.-TRUE

Meekertownian producers were worse off without free trade than they are with it.- FALSE

True or False:

When a country is too small to affect the world price, allowing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.-FALSE

Explanation:

8 0

4 years ago

A. The Grey Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of

Debora [2.8K]

Answer:

due to the limitation of brainly text document kindly check the attached images below to see the proper and organized accounting table containing the answer to the question

Explanation:

Allocation of service costs - Accounting

Particulars Calculation Maintenance Dept A Dept B Total

Number of

employees Given 2 8 4 14

Cost to be allocated $120,000 x 2/14 $17,142.86

$120,000 x 8/14 $68,571.43

$120,000 x 4/14 $ 34,285.71$

1,20,000.00

Allocation of service costs - Maintenance

Particulars Calculation Dept A Dept B Total

Machine hours Given 2300 200 2500

Cost to be allocated $317,142x 2300/2500 $ 2,91,771.43

$317,142x 200/2500 $ 25,371.43 $ 3,17,142.86

Particulars Maintenance Accounting Department A Department B

Department cost before allocation $ 3,00,000.00 $ 1,20,000.00 $ 3,00,000.00 $ 5,00,000.00

Allocation:

Accounting Department $ 17,142.86 $ -1,20,000.00 $ 68,571.43 $ 34,285.71

Balance $ 3,17,142.86 $ - $ 3,68,571.43 $ 5,34,285.71

Maintenance Department $ -3,17,142.86 $ 2,91,771.43 $ 25,371.43

Total Costs after allocation $ - $ 6,60,342.86 $ 5,59,657.14

B. The joint cost to be allocated to product X will be in the proportion of Net realizable value at the point of split off. Further total joint costs should be reduced by the revenue from by product Z.

4 0

3 years ago

Mona and her friends Jack and Bobby, all United States citizens, want to open a nail salon in Tennessee. They would all like to

Damm [24]

Answer: S corporation

Explanation:

The tax benefit for S corporations is that business income, as well as many tax deductions, credits, and losses, are passed through to the owners, rather than being taxed at the corporate level. This avoids the chance of “double taxation,” that occurs with C corporations, when dividend income is taxed first at the corporate level and then at the shareholder level.

3 0

4 years ago