All categories

3 years ago

Do entities report revenues, expenses, gains, and losses in net income or other comprehensive income? Explain.

Business

1 answer:

I am Lyosha [343]3 years ago

3 0

Answer:

Revenue Expenses in net income

Gain / losses in Other comprehensive income

Explanation:

Revenue and Expenses of an entity is reported in the net income section of income statement. the second section of income statement deals with unrealized gains / losses and any gain or losses from discontinuing operations as well. Net income also added to the other comprehensive income to calculate total net income or total comprehensive income.

You might be interested in

Profitability Analysis Kolby Enterprises reports the following information on its income statement: L04 Net sales ......... . ..

notsponge [240]

Answer:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 - 150,000) / 250,000

= 40%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000

= 18%

<u>With new product:</u>

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 + 45,000 - 150,000 - 38,000) / (250,000 + 45,000)

= 36.3%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 + 45,000 - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)

= 52,000 / 295,000

= 17.6%

3 0

3 years ago

Cullumber Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. Du

Kipish [7]

Answer:

Debit Cash account $16,800

Credit Unearned Subscription Revenue $16,800

Explanation:

When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are

Debit Cash account and Credit Unearned fees or deferred revenue.

As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.

Total amount received

= $20 * 8400

= $16800

3 0

4 years ago

Fill in the blanks in the table. Assume that the going wage for these workers is $500 per

Alex17521 [72]

A total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.

<h3>What is a marginal labor?</h3>

This refers to a firm increase in total production because of one additional unit of labor that is added while all other factors of production remain constant.

Given the information in the attached table, a total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.

Read more about marginal labor

<em>brainly.com/question/13617399</em>

#SPJ1

6 0

2 years ago

A Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for 20 per unit. Variable costs are 8 per unit,

Inga [223]

Variable expenses 20,000 advertising be increased with profits remaining unchanged.

Calculation of this year's operating income

Sales 20000*1.25*(20*(1-0.1)) $450,000

Variable expenses 20000*8*1.25 $200,000

Contribution margin $250,000

Fixed expenses 180000+30000 $210,000

Net operating income $40,000

Thus, this year’s net operating income would be $40,000.

Working note

Calculation of units sold last year.

Units sold = Total sales revenue-Sale price per unit =$400,000 - $20 =20,000.

The retail price per unit is reduced by 10%, resulting in a revised retail price of $18 per unit and 20% more units sold. Therefore, the revised sales units would be 25,000, and the total sales for the year would be $450,000, calculated by multiplying the 25,000 units sold by the selling price per unit of $18. Variable expenses increase as the number of units sold improves, so the revised variable cost is the number of units sold multiplied by $8, resulting in a variable cost of $200,000. Variable costs of $200,000 are deducted from sales of $450,000 resulting in a contribution margin of $250,000. Fixed costs increased by $30,000, resulting in revised fixed costs of $210,000 and a net operating income of $40,000. This is calculated as a contribution margin of $250,000 minus fixed costs of $210,000.

Learn more about Variable expenses at

brainly.com/question/8225307

#SPJ4

7 0

2 years ago

Decko Industries reported the following monthly data: Units produced 52,000 units Sales price $ 33 per unit Direct materials $ 1

Rus_ich [418]

Answer:

$1,275,000

Explanation:

The computation of the contribution margin is shown below:

As we know that

Contribution margin = Sales - variable cost

Selling price per unit - variable cost per unit

And, the direct material per unit, direct labor per unit, and the Variable overhead per unit are variable cost

So, if 50,000 units are sold, the contribution margin per unit is

= 50,000 × ($33 - $1.50 - $2.50 - $3.50)

= $1,275,000

3 0

3 years ago

Do entities report​ revenues, expenses,​ gains, and losses in net income or other comprehensive​ income? Explain.

Do entities report revenues, expenses, gains, and losses in net income or other comprehensive income? Explain.