The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to price factor or the Sales Price Variance is (P113,000) (P199,500) P199,500 P113,000

The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the Sales division that the quantity sold in 2022 was 25% higher than in 2021 and that the production costs in 2022 were lower than that of the 2021 by 6%. The increase (decrease) in net sales due to price factor or the Sales Price Variance is (P113,000) (P199,500) P199,500 P113,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...

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The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
Below is the Income Statement of Company A for 2020-2021 in KWD. 2021 2020 t of Sales Revenue 1,000,000 1,200,000 Cost of GoodsSold 500,000 660,000 Gross Profit 500,000 540,000 Marketing Expenses 70,000 120,000 Administrative Expenses 150,000 132,000 Net Income 280,000 288.000 Enter the Common Size Percents for 2021 and 2020 (1 Common Size Percents - Common Size Percents - 2021 2020 Sales Revenue Cost of Goods Sold Gross Profit Marketing Expenses Administrative Expenses Net Income
Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $639,400 $578,200 Cost of goods sold 464,800 433,400 Gross Profit 174,600 144,800 Operating expenses 70,500 43,000 Net income $ 104,100 $ 101,800 (a)Prepare a horizontal analysis of the income statement data for Cullumber Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CULLUMBER CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net…
Here are the comparative income statements of Ivanhoe Corporation. IVANHOE CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $612,400 $531,500 Cost of goods sold 447,500 409,400 Gross Profit 164,900 122,100 Operating expenses 78,000 49,600 Net income $ 86,900 $ 72,500 (a)Prepare a horizontal analysis of the income statement data for Ivanhoe Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) IVANHOE CORPORATIONComparative Income Statementchoose the accounting period Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales $612,400 $531,500 $enter a dollar amount enter percentages…
Operating data for Taylor Corporation are presented below. Using the Excel spreadsheet provided, prepare a schedule showing a vertical analysis for 2020 and 2019. 2020 2019 Sales revenue $800,000 $600,000 Cost of goods sold 520,000 408,000 Selling expenses 120,000 72,000 Administrative expenses 60,000 48,000 Income tax expense 30,000 24,000 Net income 70,000 48,000 (CGS percent. = CGS ÷ Sales rev.)
Here are the comparative income statements of Blue Spruce Corp.. BLUE SPRUCE CORP.Comparative Income StatementFor the Years Ended December 31 2020 2019 Net sales $540,000 $450,000 Cost of goods sold 441,180 381,600 Gross Profit 98,820 68,400 Operating expenses 67,500 40,500 Net income $ 31,320 $ 27,900 (a)Prepare a horizontal analysis of the income statement data for Blue Spruce Corp., using 2019 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) BLUE SPRUCE CORP.Comparative Income Statementchoose the accounting period Increase or (Decrease) During 2020 2020 2019 Amount Percentage Net sales $540,000 $450,000 $enter a dollar amount enter percentages rounded to 1 decimal place % Cost of goods sold…
The comparative statements of Oriole Company are presented here: ORIOLE COMPANYIncome StatementsFor the Years Ended December 31 2022 2021 Net sales $1,895,640 $1,755,600 Cost of goods sold 1,063,640 1,011,100 Gross profit 832,000 744,500 Selling and administrative expenses 505,100 484,100 Income from operations 326,900 260,400 Other expenses and losses Interest expense 23,600 21,600 Income before income taxes 303,300 238,800 Income tax expense 93,600 74,600 Net income $209,700 $164,200 ORIOLE COMPANYBalance SheetsDecember 31 Assets 2022 2021 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable (net) 122,900 107,900 Inventory 127,600 117,100 Total current assets 384,600 339,200 Plant assets (net) 659,000 530,300…
The following are the financial statement JNC Ltd. for the year ended 31 March 2020: JNC Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 JNC Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…
The comparative statements of Sunland Company are presented here: Sunland CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,898,440 $1,758,400 Cost of goods sold 1,066,440 1,013,900 Gross profit 832,000 744,500 Selling and administrative expenses 507,900 486,900 Income from operations 324,100 257,600 Other expenses and losses Interest expense 23,900 21,900 Income before income taxes 300,200 235,700 Income tax expense 93,900 74,900 Net income $206,300 $160,800 Sunland CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 125,700 110,700 Inventory 127,900 117,400 Total current assets 387,700 342,300 Plant assets…
The comparative statements of Sunland Company are presented here: Sunland CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,898,440 $1,758,400 Cost of goods sold 1,066,440 1,013,900 Gross profit 832,000 744,500 Selling and administrative expenses 507,900 486,900 Income from operations 324,100 257,600 Other expenses and losses Interest expense 23,900 21,900 Income before income taxes 300,200 235,700 Income tax expense 93,900 74,900 Net income $206,300 $160,800 Sunland CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 125,700 110,700 Inventory 127,900 117,400 Total current assets 387,700 342,300 Plant assets…
Below are the Income Statement and Balance Sheet for Longborg Corporation for the years ended 2020 and 2021. Calculate the profitability ratios in the table to the right for the year ended 2021. Longborg Corporation Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $60,200,300 $52,410,500 Cost of goods sold 44,850,700 39,050,800 Gross profit 15,349,600 13,359,700 Selling expenses 2,725,500 2,860,600 Administrative expenses 2,850,300 2,575,400 Total operating expenses 5,575,800 5,436,000 Income from operations 9,773,800 7,923,700 Interest Expense 385,200 425,600 Other income 125,000 105,000 Income before income tax 9,513,600 7,603,100 Income tax expense 3,329,800…