Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,030 Labor expense 41,570 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 310 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin fill in the blank b354eefc7f83060_1 % Return on investment fill in the blank b354eefc7f83060_2 % Residual income $fill in the blank b354eefc7f83060_3
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values. Pretax income ? Gross profit ? Allocated costs (uncontrollable) $2,030 Labor expense 41,570 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense 17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,260 Total expenses ? Marketing costs (uncontrollable) 790 Administrative expense 700 Income tax expense (21% of pretax income) ? Other expenses 310 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place. Profit margin fill in the blank b354eefc7f83060_1 % Return on investment fill in the blank b354eefc7f83060_2 % Residual income $fill in the blank b354eefc7f83060_3
Chapter2: Introduction To Financial Statements
Section: Chapter Questions
Problem 9EB: Prepare an income statement using the following information for CK Company for the month of February...
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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.
Pretax income | ? |
Gross profit | ? |
Allocated costs (uncontrollable) | $2,030 |
Labor expense | 41,570 |
Sales | 188,000 |
Research and development (uncontrollable) | 310 |
17,000 | |
Net income/(loss) | ? |
Cost of goods sold | 118,440 |
Selling expense | 1,260 |
Total expenses | ? |
Marketing costs (uncontrollable) | 790 |
Administrative expense | 700 |
Income tax expense (21% of pretax income) | ? |
Other expenses | 310 |
B. Calculate the profit margin,
Profit margin | fill in the blank b354eefc7f83060_1 | % |
Return on investment | fill in the blank b354eefc7f83060_2 | % |
Residual income | $fill in the blank b354eefc7f83060_3 |
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