1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
podryga [215]
3 years ago
15

From the following information, construct a simple income statement and a balance sheet:

Business
1 answer:
yaroslaw [1]3 years ago
6 0

Answer and Explanation:

The Preparation of the simple income statement and a balance sheet is shown below:-

                                   Corporation X

                                  Income Statement

                                 for the Year Ended xxxx

Particulars                                        Amount

Sales                                                $1,000,000

Less: Cost of goods sold               $500,000

Gross profit                                      $500,000

Less: Other expenses                     $60,000

EBIT                                                  $440,000

Less: Interest                                   $70,000

EBT                                                   $370,000

Less: Income tax                              $100,000

Net income                                       $270,000

Number of shares outstanding       $80,000

Earning per share                             $3.375

(Net income ÷ Number of shares outstanding)

                                   Corporation X

                                  Income Statement

                                 for the Year Ended xxxx

Particulars                                        Amount

Assets

Cash                                                $70,000

Accounts Receivable                     $150,000

Inventory

Raw Material                                   $80,000

Finished Goods                              $250,000

Total Current Assets                      $550,000

Plant & Equipment                          $410,000

Total Assets                                    $960,000

Liabilities

Accounts Payable                          $160,000

Other Current Liabilities                 $60,000

Total Current Liabilities                  $220,000

Long term Debt                              $200,000

Equity                                              $540,000

Total Liabilities & Equity                 $960,000

You might be interested in
Shelton, Inc., has sales of $20 million, total assets of $18.2 million, and total debt of $9.1 million. Assume the profit margin
Verizon [17]

Answer:

$1,800,000

Explanation:

Shelton incorporation has sales of $20,000,000

Total assets is $18.2 million

Total debt is $9.1 million

Profit margin is 9%

Therefore the company net income can be calculated as follows.

= sales × profit margin

= 20,000,000 × 9/100

= 20,000,000 × 0.09

= 1,800,000

Hence the company net income us $1,800,000

3 0
3 years ago
The supplies account had a beginning balance of $1,693. Supplies purchased during the period totaled $4,413. At the end of the p
olga55 [171]

Answer:

Debit Supplies expense $5,661

Credit Supplies account $5,661

Explanation:

At the time of purchasing supplies, the entries includes a debit to supplies accounts, and a credit to cash or accounts payable which is dependent on whether the cash purchased was done via cash or an account

For supplies used, debit supplies expense and credit supplies account. The movement in supplies account over a period is due to purchases and its expressed as;

Opening balance + Purchases - Supplies used = closing balance

$1,693 + $4,413 - Supplies used = $445

$6,106 - Supplies used = $445

Supplies used = $6,106 + $445

Supplies used = $5,661

6 0
2 years ago
A company offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of th
kozerog [31]

Answer: C. The employees will receive a share of profits as part of the company's ESOP.

Explanation:

The retirees can still get a portion of profits if they are part of an Employee Stock Ownership Plan.

ESOP is a pretty standard thing these days with companies where they reward their employees with shares in the company.

Seeing as the company is making too little to be able to keep paying Retirement benefits, the retirees being owners of Stock can still partake in the earnings that the company makes when they distribute dividends.

7 0
3 years ago
Zacher Co.'s stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firm's req
mihalych1998 [28]

Answer:

The answer is option (C). The firm's required rate of return=11.95%

Explanation:

The required rate of return can be expressed using the formula below;

RRR=RFR+B(MRR)

where;

RRR=required rate of return

RFR=risk free return

B=beta

MRR=market rate of return

In our case;

RRR=unknown

RFR=4.25%

B=1.4

MRR=5.5%

This can be written as;

Required rate of return=risk free return+(beta×market rate of return)

replacing;

RRR=4.25%+(1.4×5.5)

RRR=(4.25%+7.7)=11.95%

The firm's required rate of return=11.95%

5 0
3 years ago
Why is it important to compare savings accounts to get the best interest rate?
maw [93]
1.Minimum Balance. A low or no minimum balance requirement helps you save money from day one. Some accounts can be opened with as little as $1 and require no minimum balance. 

2. Monthly Fee. Many banks charge a monthly maintenance or service fee for their accounts, especially if your balance dips below a required minimum. Look for an account with no monthly fees. 

3. Online Transfers between Accounts. A major advantage to using a savings account is the ability to access your money whenever you want. That includes transactions from the comfort of your home. You should be able to easily transfer funds between your checking and savings accounts online. 

4. Automatic Savings Transfers. The best savings tool makes saving money as painless as possible. Some accounts will let you set up an automatic transfer of funds from your checking account at regular intervals. This feature helps you save money before you are tempted to spend it. 

5. Security. Shop only for those savings accounts that are insured by the Federal Deposit Insurance Corporation (FDIC). This protects your account balance up to $250,000 in the event of a financial catastrophe. 

3 0
3 years ago
Other questions:
  • The generic types of competitive strategies include:
    12·1 answer
  • A court will not require a person to perform an agreed-upon act if it is illegal.
    15·2 answers
  • The real risk-free rate is 3.05%, inflation is expected to be 3.60% this year, and the maturity risk premium is zero. Ignoring a
    14·1 answer
  • Given the following information from Power Enterprises’ direct materials budget, how much direct materials needs to be purchased
    14·1 answer
  • Explain why peccarelli returned to guatemala and describe the goals his team are trying to accomplish.
    11·1 answer
  • Jack and Jill have trouble keeping their checking account balanced. Because they never know how much is really in their account,
    8·1 answer
  • Equipment is a(n) _____________ account. It is reported on the _____________ side of the accounting equation and is ____________
    13·1 answer
  • Mario is a criminal attorney with a private practice. He has been appointed by the court to serve as a defense attorney for an i
    11·1 answer
  • According the kinked demand curve model:
    9·1 answer
  • One definition of ____ is borrowing money to make a large purchase with the
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!