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
dybincka [34]
3 years ago
14

The trial balance of Rollins Inc. included the following accounts as of December 31, 2021:

Business
1 answer:
Alinara [238K]3 years ago
7 0

Answer:

Net income  = $725,625    

Earnings per share = $7.26 per share

Explanation:

The multiple-step income statement refers to an income statement that displays gross profit obtained as sales revenue minus cost of goods sold, and also shows an organization's operating revenues and operating expenses separately from its nonoperating revenues or gains and expenses or losses.

The multiple-step income statement can be prepared as follows:

Rollins Inc.

multiple-step income statement

For the Year Ended December 31, 2021

<u>Details                                                      $                             $             </u>

Sales Revenue                                                               5,400,000

Cost of goods sold                                                    <u>   (3,950,000)   </u>

Gross profit                                                                     1,450,000

<u>Operating expenses:</u>

Selling expense                                 (350,000)

General and admin expense          <u>   (250,000)   </u>

Total operating expenses                                            <u>  (600,000)  </u>

Operating income                                                            850,000

<u>Interest revenue (expense):</u>

Interest revenue                                     37,500

Interest expense                                 <u>  (20,000) </u>

Total Interest revenue (expense)                                      17,500

<u>Other compreh. income (loss):</u>

Loss on sale of investments               (10,000)

Loss on debt investments                 (125,000)

Gain on projected ben. obligation   <u>  235,000 </u>

Total other compreh. income (loss)                             <u>   100,000  </u>

Income before tax                                                           967,500

Income taxes (w.1)                                                        <u>   (241,875)   </u>

Net income                                                                   <u>   725,625    </u>

Earnings per share (w.2)                                                      7.26

<u>Workings:</u>

w.1: Income taxes = Income before tax  * Effective tax rate = $967,500 * 25% = $241,875

w.2: Earnings per share = Net income / Number of shares of stock outstanding throughout the year = $725,625 / 100,000 = $7.26

You might be interested in
True or false: economic models do not take the role of entrepreneurs into account because entrepreneurial discovery plays only a
andrey2020 [161]
The answer is false. The role of entrepreneurs is accounted by economic models. They are directly connected with the consumers and have firsthand information about the things that they would like. Entrepreneurs play a big role to ensure that businesses circulate.
4 0
3 years ago
Which of the following is not characteristic of open-ended questions? a. can be used to interpret closed-ended questions b. resp
alexandr402 [8]

Answer:

D. ease of coding and tabulation of results

5 0
3 years ago
Describe how the concept of competition to the economy
MaRussiya [10]

condition where different economic firms seek to obtain a share of a limited good by varying the elements of the marketing mix: price, product, promotion and place.

7 0
3 years ago
Mary’s Flower Boutique needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand
docker41 [41]

Answer: The calculation is as follows:

Explanation:

Given that,

Annual demand = 2000 flowers

Regular parcel service = 3 days transit time

Premium parcel service = 1 day transit time

Public carrier = 5 days transit time

(1) Average annual transportation inventory for Regular parcel service:

⇒ \frac{Annual\ demand\ \times\ Regular\ Service}{365}

= \frac{2000 \times\ 3}{365}

= 16.43

(2) Average annual transportation inventory for Premium parcel service:

⇒ \frac{Annual\ demand\ \times\ Premium\ Service}{365}

= \frac{2000 \times\ 1}{365}

= 5.47

(3) Average annual transportation inventory for Public carrier:

⇒ \frac{Annual\ demand\ \times\ Public\ carrier}{365}

= \frac{2000 \times\ 5}{365}

= 27.39

5 0
3 years ago
You own Bond B and are concerned about interest rates increasing soon. You have chosen Bond H to hedge your B risk. The greater
IRISSAK [1]

Answer:

The greater H's dv01:__________

c) the less of it you need to buy.

Explanation:

The dollar (or money) duration or DV01 is the dollar value per 01 (100 basis points) of a bond.  It measures a bond’s interest rate risk in nominal or dollar-amount terms.  Dollar (money) duration assumes that bonds have fixed rates with fixed interval payments.   It is a linear approximation of how a bond's value will change in response to changes in interest rates.

6 0
3 years ago
Other questions:
  • Rasheed works for Company A, earning $299,000 in salary during 2019. Assuming he is single and has no other sources of income, w
    11·1 answer
  • A portfolio with a 30% standard deviation generated a return of 15% last year when T-bills were paying 6.0%. This portfolio had
    15·1 answer
  • Michael's, Inc. just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future di
    15·1 answer
  • Lucky Cow Dairy provided the following expense information for​ May: Assemblyminusline ​workers' wages $ 72 comma 300 Caps for m
    11·1 answer
  • Use the following information to determine this company's cash flows from financing activities.a. Net income was $466,000. b. Is
    6·1 answer
  • Riverside Manufacturing designs and manufactures bathtubs for home and commercial applications. Riverside recorded the following
    14·1 answer
  • Cullumber Industries incurs unit costs of $8 ($5 variable and $3 fixed) in making an assembly part for its finished product. A s
    9·1 answer
  • Kevin’s Bacon Company Inc. has earnings of $7 million with 2,500,000 shares outstanding before a public distribution. Eight hund
    11·1 answer
  • What body of people do not have to worry about raising capital?
    11·1 answer
  • In porter's generic competitive strategies, which strategy combines a focus on a total market scope and a competitive cost advan
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!