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
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
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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