Exercise 1-7 Determining profit LO6 Profit (loss), owner withdrawals, and owner investment cause equity to change. profit (loss). Using the following information, calculate profit (loss) for each indep a. The business earned revenues of $546,000 and had expenses of $507,000.

Illustration: 3 From the following particulars of AVS LLC., for the year 2002 and 2003, you are required to prepare a comparative Income Statement : Statement of Profit and Loss Account Particulars 2002 2003 RO. RO. Net Sales 4,000 5,000 Less : Cost of Goods Sold 3,000 3,750 Gross Profit 1,000 1,000 Less : Operating Expenses : Office & Administrative Expenses 200 250 Selling & Distribution Expenses 225 300 Total Operating Expenses 425 550 Net Profit 575 700 Solution:

Explain how knowledge of managerial accounting can assist a manager with regard to the following concerns: He is deciding whether to push through with a project. He is determining whether a branch is profitable or not. He is deciding whether to process a certain product further before selling. He would like to show to the Board of Directors how the business is financially performing and how cash is being used. He would like to plan for the year so that he will be prepared to deal with shortage of cash fund.

Subject :- Accountig

Compute profit margin for each of the 3 separate companies. Which company is the most profitable based on the profit margin ratio? Net income Net sales Total assets Kerr $ 6,450 43,000 48,000 Jax $ 1,640 41,000 45,000 Profit Margin Conclusion Bron $ 3,420 38,000 43,000 Complete this question by entering your answers in the tabs below. Compute profit margin for each of the 3 separate companies. Company Profit Margin (%) Kerr Jax Bron

With the given statement of comprehensive income below, conduct a vertical analysis.

With the give statement of comprehensive income below, conduct a horizontal analysis.

Ratio Analysis Dobby's income statement lists net sales of $179,000 and a gross margin of $111,000. All other expenses not included in the gross margin totaled $46,500.   1. calculate gross profit ratio 2. calculate net profit margin ratio