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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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Brent called insurance companies and got insurance quotes for the three trucks. Both the 1996 Ford F150 and the 1998 Chevy 1500

torisob [31]

Answer:

Website

Annual Reports

Magazines

Newspaper

Television Advertisement

Explanation:

The company website are the reliable source for the information. These websites include information about the specific product details. Brent can easily get access to details about product design, their specification and details. There can be other website which provide reviews of products. Brent can access those website to observe the reviews of the product but since the reliability of these website can be questioned so its better not to trust everything you read.

6 0

4 years ago

What is the future value i I plan to invest $200,000 for 5 years and the interest rate is 5%?

denis23 [38]

Answer:

Initial capital $200,000

Period 5 years

interest rate 5%

Interest year 1 $10,000.00

Interest year 2 $10,500.00

Interest year 3 $11,025.00

Interest year 4 $11,576.25

Interest year 5 $12,155.06

Future Value= $255256.31

See the image attached

4 0

4 years ago

The effect of an increase in the price level on the aggregate-demand curve is represented by a a. shift to the right of the aggr

Lunna [17]

Answer:

C. Movement to the left along a given aggregate demand curve

Explanation:

Demand is the quantity of a good or service consumers are willing to buy at a given price over a given period of time. Price and demand tend to have a negative relationship. As price of a product increases, demand decreases as it is now more expensive and less affordable. On the other hand, when price decreases, demand increases as it is now cheaper than before.

To answer the question, as the price of a product increases, the quantity demanded falls, hence causing the leftward movement along the demand curve. A fall in price on the other hand, will cause a rightward movement along the demand curve.

Any other factor other than price such as a change in population, availability of substitutes and price of complementary products can cause a shift in the demand curve. If the factor is favorable, it causes a right-hand shift and if it is unfavorable, it causes a left-hand shift.

3 0

4 years ago

(Bond valuation relationships) Stanley, Inc. issues 15-year $1 comma 000 bonds that pay $85 annually. The market price for

BaLLatris [955]

Answer:

a) The value of the bond (to you) is 959.6965579

if the value of the market's required yield to maturity on a comparable-risk bond increases to 11 percent ; we have the value to be 820.2282606
if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent; we have the value to be 1136. 61871

c) Yield to maturity is the expected return on holding the bond till maturity

Thus, Bonds should be purchased when the yield to maturity is the highest ; As such!, if the yield to maturity on a comparable - risk bond decrease to 7%.

You should purchase the Stanley bonds at the current market price of $960.

Explanation:

Given that:

Par Value (F) = $1000

Interest Rate ( annual coupon rate) = $85

Market demand return ( yield to maturity) = 9% = 0.09

Time of maturity = 15 years

a. What is the value of the bond to you?

The value of the bond can be calculated as follows:

= $\frac{annual coupon}{yield}*(1-\frac{1}{(1+yield)^t} )(\frac{Par Value}{(1+yield)^t} )$

= $\frac{85}{0.09}*(1-\frac{1}{(1+0.09)^{15}} )(\frac{1000}{(1+0.09)^{15}} )$

= 959.6965579

Thus, the value of the bond to you = 959.6965579

b. What happens to the value if the market's required yield to maturity on a comparable-risk bond increases to 11 percent .

If increase to 11 % occurs:

we have :

= $\frac{85}{0.11}*(1-\frac{1}{(1+0.11)^{15}} )(\frac{1000}{(1+0.11)^{15}} )$

= $\frac{85}{0.11}*(1-\frac{1}{(1.11)^{15}} )(\frac{1000}{(1.11)^{15}} )$

= 820. 2282606

Hence, if the value of the market's required yield to maturity on a comparable-risk bond increases to 11 percent ; we have the value to be 820. 2282606

What happens to the value if the market's required yield to maturity on a comparable-risk bond decreases to 7 percent?

If decrease to 7% occurs:

= $\frac{85}{0.07}*(1-\frac{1}{(1+0.07)^{15}} )(\frac{1000}{(1+0.07)^{15}} )$

= $\frac{85}{0.07}*(1-\frac{1}{(1.07)^{15}} )(\frac{1000}{(1.07)^{15}} )$

= 1136. 61871

c) Under which of the circumstances in part b should you purchase the bond?

Yield to maturity is the expected return on holding the bond till maturity

Thus, Bonds should be purchased when the yield to maturity is the highest ; As such!, if the yield to maturity on a comparable - risk bond decrease to 7%.

You should purchase the Stanley bonds at the current market price of $960.

8 0

4 years ago

elena is a regular customer at cuppo' coffee. she is the first customer to enter the coffee shop every morning and spends $10 f

Vera_Pavlovna [14]

Answer:

The management can make Elena a loyalty card holder or loyalty program member.

Explanation:

A customer loyalty program refers to a kind of reward program offered by a company to it's those customers who frequently purchase it's products or avail it's services.

Usually, under such loyalty programs, a customer is provided with a loyalty card, wherein for each purchases he/she makes, some loyalty points are earned. These loyalty points can collectively be redeemed later on, in the form of discounts.

So, in the current case, since elena is a frequent buyer of coffee on routine basis, the management can include her in their customer loyalty program and provide her with a loyalty card.

Such card will provide her with rewards and would make her feel privileged, strengthen her bond of loyalty with cuppo' coffee and may lead to increased customer share.

4 0

3 years ago

How do you do income statement​

How do you do income statement