Income from operations for a merchandising company is sales less 1.operating expenses. 2.operating expenses and cost of goods sold. 3.cost of goods sold. 4.non-operating items and cost of goods sold.
Q: Apr. 30 Received $495,000 from Commerce Bank after signing a 12-month, 5 percent, promissory note.…
A: Journal entries are recorded in chronological order where transactions of business has been recorded…
Q: ABC, DEF and GHI formed a partnership on April 1, 2022 and contributed The partners agreed that…
A: Operating Profit for the year ended 31 December = P176,000 Annual salary: ABC = P 24000 DEF = P…
Q: How many shares of the Company’s common stock were outstanding as of January 29, 2022?
A: Basic Net income per share = net income/ Number of shared outstanding
Q: The following data relates to Lead Company's estimated amounts for next year. Department 1…
A: Plant -wide overhead rate: Manufacturing overhead is all the costs in a manufacturing plant that…
Q: Which of the following is an incorrect statement? a. The amount of audit work should vary…
A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…
Q: Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in…
A: Receivable Turnover Ratio - Receivable Turnover Ratio shows in the financial year how many times…
Q: Determine whether the depreciation of the equipment will lead to a deferred tax asset, or a deferred…
A: Tafty Limited has purchased an asset for 5 years for accounting and 50% for taxation purposes.
Q: Required Choose an appropriate cost driver for each of the overhead costs and determine the total…
A: Given: Home 1 Home 2 Home 3 Direct labour 66000 100000 178000 Direct Material 109000 139000…
Q: Which of the following statements is false? Oa. Even small companies use computerized accounting…
A: Accounting cycle includes: Identifying transactions Journalizing Posting Unadjusted trial balance…
Q: Briefly describe this income statement in one sentence.
A: Introduction:- Income statement shows company's income and expenses over a period of time. Formula…
Q: Why would a company hire internal auditors if they already have an external auditor?
A: Internal audit is basically the internal department of the organisation which performs checks to…
Q: The following data pertain to Sunlight Corp., whose management is planning to purchase an automated…
A: Net Present Value- The difference between the current value of cash inflows and withdrawals over a…
Q: single and has to relocate in order to begin a new job. She travels 400 kilometers closer to her new…
A: Explanation of the concept Relocation expenses are the expenses which have been incurred for…
Q: Aaron and Melissa are looking to sell their house for $700,000. They purchased the house seven years…
A:
Q: why is there a need to re evaluate impairment of assets due to trigger events?
A: The impairment refers to the decrease in the value of assets of the company. This reduction is…
Q: Karen Corporation has engaged Gelai, CPA, to issue a report on the accuracy of product quality…
A: Attestation Engagement: An engagement consisting of an examination, review, or application of…
Q: Question 4 Jason works Monday to Friday, from 10:00 AM to 6:00 PM, at $18.54/hour, including 30 min…
A: Hi student Since there are multiple questions, we will answer only first question. Pay of the…
Q: Lina purchased a new car for use in her business during 2021. The auto was the only business asset…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: Exercise 8-11 Estimating bad debt expense-percentage of sales CHECK FIGURE: d. Accounts…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 1. 500,000 units of a product per year is being produced by a company and sells them for P4 million.…
A: Given, Cost per unit of product = P3.00, Annual fixed operating expenses = P680,000, 500,000 units…
Q: 3 hours in the same week. You are required to prepare all the labor variances and answer the…
A: Given Information: Standard Skilled Worker :20 Semi -Skilled :15 Unskilled :10 Standard…
Q: For calendar year 2016, sigma had a depreciation of 1,200,000 in its income statement. On its 2016…
A: Deferred tax was an tax asset or liability for the company of its future where the differences which…
Q: Which of the following are the ways that a company can finance the purchase of assets? Equity…
A: the correct option with proper explanation are as follows
Q: Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price,…
A: Land is the non-current asset that is usually held by the entity for using the same to run its…
Q: Question 53 of 75. In which of the following scenarios are qualified educational expenses for the…
A: Answer:- Qualified educational expenses for the education meaning:- Tuition, fees, and other…
Q: Which of the following statements is incorrect regarding the classification of accounts and notes…
A: In case of valuation of accounts that are to be appropriately offset against the proper accounts…
Q: nship or differences between Accounting and accountability?
A: Accounting: Every business has various types of transactions like monetary, goods and services. To…
Q: nformation concerning a product produced by Ender Company appears here: Sales price per unit…
A: Contribution margin per unit = Selling price - variable Cost = 159 - 78 =$81
Q: One output of the accounting information system is the balance sheet. Transactions commonly…
A: Accounting information system is one of the important system that is being used for maintaining and…
Q: A.] Prepare balance sheet and income statements in formal reports using the data given below. 1.…
A: Financial statements are those statements which are prepared at the end of accounting period for the…
Q: Explain the purpose of the statement of cash flows
A: Cash Flow Statement - Cash Flow Statement shows the movement of cash during the financial year. This…
Q: Critically analyse the components of Financial Statemen
A: Introduction:- Every Component of the Financial Statements provides a unique and useful purpose and…
Q: Munoz Air is a large airline company that pays a customer relations representative $3,900 per month.…
A: 1. TOTAL PROCESSING COST FOR WHOLE YEAR : = $3,900 X 12 MONTHS = $46,800 2. PROCESSING COST PER…
Q: 57,000 units per year at a price of RM82. What is the highest variable cost that will allow the firm…
A: RM 79.63 is the highest variable cost that will allow the firm to at least break even on this…
Q: ABC contributed P48,000 and DEF contributed P96,000 to form a partnership and they agreed to share…
A: The profit sharing ratio is to be calculated on the basis of their original capital contributions…
Q: Cost of merchandise sold reported on the income statement was $263000. The accounts payable balance…
A: The value of products sold by a jobber or merchant is noted because the cost of merchandise sold .…
Q: How must a change in accounting policy be accounted for to preserve comparability and consistency in…
A: Financial statements are written statement that consists of statement of profit and loss, statement…
Q: 8. Given the following data, calculate product cost per unit under variable costing. Direct labor $7…
A: Introduction: Variable costing: Variable cost varies according to change in the units. It's not…
Q: Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct…
A: The benchmark is established ahead of time, and actual performance is tested against it. Management…
Q: Funky Dance sold inventory for $250,000, terms 1/10, n/30. Cost of goods sold was $168,000. How much…
A: Formula used: Reported sales value = Sales revenue - Discount amount.
Q: TB MC Qu. 5-63 (Algo) Manufacturing overhead: Metal Company Metal Company budgeted $564,000…
A: Calculation of cost per direct labor hour :- Direct labor hour = Machine…
Q: The Chris Clapper Copper Company declared a 25 percent stock dividend on March 10 to shareholders of…
A: When a company issues stock dividend it means it issue shares as dividend instead of cash. Dividend…
Q: Mead Incorporated began operations in Year 1. Following is a series of transactions and events…
A: journal entry of above transaction are as follows
Q: Tradewinds Construction Company had 4 dump trucks, 2 excavators, and other construction machinery…
A: In order to determine the net investment, the depreciation is required to be deducted from the gross…
Q: Since the birth of his granddaughter, 20 years ago, Jason has deposited $200 at the beginning of…
A: 1. FVA after 7 years = P * (([1 + I]^N - 1 )*(1+I))/I, where P is the payment amount= 200 I is…
Q: The Haskins Company manufactures and sells radios. Each radio sells for $32.00 and the variable cost…
A: Contribution per unit is the value which is determined after deducting the variable cost from sale…
Q: Which one of the following is NOT a budgetary benefit? It establishes the organization's goal. It…
A: Budgeting is a written plan covering projected activities of a firm for a defined period of time…
Q: 1. A p C Over direc Igno
A: Lets understand the basics. When there are more than one process is required for the production of…
Q: PT X has nominal preference shares of Rp. 1 billion, 6%. PT X's profit during the year was Rp. 200…
A: Dividend to Preferred shareholders: Preferred shareholders are given preference when dividend is…
Q: Rafner Manufacturing identified the following budgeted data in its two production departments.…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Income from operations for a merchandising company is sales less
Step by step
Solved in 3 steps
- How does the Cost of goods sold section of the income statement differ between retail and manufacturing companies?Which of the following represents the components of the income statement for a manufacturing business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Service Revenue - Cost of Goods Manufactured = gross profit D. Sales Revenue - Cost of Goods Manufactured = gross profitWhich of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profit
- in a merchandising business gross profit is equal to the sales revenue minus (a) the sum of cost of goods sold and sales commissions (b) cost of goods sold (c) the sum of cost of goods sold and operating expenses (d) the sum of cost of goods sold, operating expenses and prepaid expenses4. What is the difference between the SCI of a service entity from a merchandising entity? 5. What is the formula in computing Net Income (Loss) for Service Entities? 6. What is the formula in computing Net Sales? 7. What is the formula in computing Cost of Goods Sold?Which of the following represents the components of the income statement for a merchandising business? a.Service Revenue – Operating Expenses = gross profit b.Sales Revenue – Cost of Goods Sold = gross profit c.Service Revenue – Cost of Goods Purchased = gross profit d.Sales Revenue – Cost of Goods Manufactured = gross profit
- How to calculate the gross profit for merchandise business? A. Total Sales minus all the operating expenses. O B. Total Sales minus the Total purchase cost C. Net Sales minus all the operating expenses D. Net Sales minus the COGSSLO-5.1. for a merchandising business is determined by subtracting the Cost of Goods Sold from the Sale Income account. OOperating Income ONet Income OGross Profit OMerchandise Available for Sale9. Which of the following is the correct computation for the cost of goods available for sale? a.Net Sales - Cost of Goods Sold b. Sales - Cost of Goods Sold c. Beginning Inventory + Net Purchases d. Net Purchases - Ending Inventory 10. This refers to the shipping cost necessary to bring inventory purchased from the seller to the premises of the company. a. Freight - In b. Freight - Out c. Delivery Expenses d. Travelling Expenses
- On the income statement of a merchandising company, interest income and interest expense are reported: Question 8 options: A) As part of cost of goods sold B) By offsetting interest income and interest expense and showing the excess as an operating revenue or expense C) By showing interest income as additional sales revenue and interest expense as an operating expense D) As separate items of other income and expense below the net operating income or lossWhich of the following represents the components of the income statement for a merchandising business? Select one: a. Service Revenue – Operating Expenses = gross profit b. Sales Revenue – Cost of Goods Sold = gross profit c. Service Revenue – Cost of Goods Purchased = gross profit d. Sales Revenue – Cost of Goods Manufactured = gross profit1. Which of the following would not be considered as a component of the "cost" of Goods Sold?a. Salesforce salariesb. Transportation purchasec. Import duties or raw materiald. Factory electricity expense 2. Revenue minus all direct costing of making the goods or supplying the service is known as?a. Gross profitb. Cost of salesc. Expensesd. Net profit 3. During the costing process, to arrive at the gross profit of a trading business, which one of the following formulas is applied?a. Sales - (Beginning Inventory - Purchases - Ending Inventory)b. Sales - (Beginning Inventory + Purchases + Ending Inventory)c. Sales - (Beginning Inventory + Purchases - Ending Inventory)d. Sales - (Beginning Inventory - Purchases + Ending Inventory)
