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2 years ago

How do you do income statement

1 answer:

3 0

To prepare an income statement, you will need to generate a trial balance report, calculate your revenue, determine the cost of goods sold, calculate the gross margin, include operating expenses, calculate your income, include income taxes, calculate net income and lastly finalize your income statement with business details and the reporting period.

If you can't find the time to make one from scratch, there are templates that can be used to help.

gross margin : the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.

net income : net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses.

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Esquire Comic Book Company had income before tax of $1,550,000 in 2021 before considering the following material items: 1. Esqui

olga2289 [7]

Answer:

Esquire Comic Book Company

Income Statement

For the Year Ended December 31, 2021

Operating income $1,550,000

Restructuring costs ($60,000)

Income from continuing operations b/ Taxes $1,490,000

Income tax expense ($372,500)

Income from continuing operations $1,117,500

Discontinued operations:

Operating income $610,000
Loss on disposal ($395,000)
Income tax on discontinued operations ($53,750)

Income from discontinued operations $161,250

Net income $1,278,750

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

3 0

3 years ago

On July 1, 20x1, Fox Co. purchased as a held-to-maturity investment $5,000,000 of Owl, Inc.'s 8% bonds for $4,580,000, including

Dimas [21]

Answer:

The amount fox should report on Dec 31,20x1 = $4,556,500

Explanation:

The carrying amount of bonds = $4,580,000 - $50,000

The carrying amount of bonds = $4,530,000

Amortization of discount from july 1 to dec 31 (6 months):

Interest Revenue = $4,530,000* 10% * 6/12

Interest Revenue= $226500

Interest Receivable = $5,000,000 * 8% * 6/12

Interest Receivable = $200000

Discount amortized =Interest Revenue - Interest Receivable

Discount amortized = $226500 - $200000

Discount amortized = $26500

So:

The amount fox should report on Dec 31,20x1 = $4,530,000 + $26500

The amount fox should report on Dec 31,20x1 = $4,556,500

4 0

3 years ago

Castle Brew Inc., a leading multinational beverage manufacturing company, coordinates with Waste Yard Inc., a waste management c

ycow [4]

Answer:

Socially responsible business

Explanation:

The company is investing in save the enviroment, so it is assuming his role inside the society. It is performing a policy which does not seek profit, it seeks to generate a better and sustainable community and world.

It reduces waste and promotes recicling

5 0

3 years ago

At December 31, 2020 Bramble Corp. had 298000 shares of common stock and 9800 shares of 6%, $100 par value cumulative preferred

Vika [28.1K]

Answer:

the earning per common share is $3.83 per share

Explanation:

The computation of the earning per common share is shown below

= Net income ÷ weighted number of outstanding shares

= $1,143,000 ÷ (298,000 shares)

= $3.83 per share

We simply divided the net income from the weighted number of outstanding shares so that the earning per share could be determined

hence, the earning per common share is $3.83 per share

5 0

3 years ago

Imagine an economy in which: (1) pieces of paper called yollars are the only thing that buyers give to sellers when they buy goo

Tomtit [17]

Imagine an economy in which:
(1) pieces of paper called yollars are the only thing that buyers give to sellers when they buy goods and services, so it would be common to use, say, 50 yollars to buy a pair of shoes;
(2) prices are posted in terms of yardsticks, so you might walk into a grocery store and see that, today, an apple is worth 2 yardsticks; and
(3) yardsticks disintegrate overnight, so no yardstick has any value for more than 24 hours.

In this economy, the yardstick is a unit of account but it cannot serve as a store of value.

4 0

3 years ago

How do you do income statement​

How do you do income statement