FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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) | $2,040 |
Labor expense | 41,580 |
Sales | 189,000 |
Research and development (uncontrollable) | 310 |
16,000 | |
Net income/(loss) | ? |
Cost of goods sold | 119,070 |
Selling expense | 1,250 |
Total expenses | ? |
Marketing costs (uncontrollable) | 790 |
Administrative expense | 700 |
Income tax expense (21% of pretax income) | ? |
Other expenses | 330 |
A. Prepare the income statement using the above information. Round your answers to the nearest dollar.
BDS Enterprises | |
Income Statement | |
For the Year Ended Dec. 31, 20xx | |
Sales | $fill in the blank cde9000a3faf056_2 |
Cost of Goods Sold | fill in the blank cde9000a3faf056_4 |
Gross Profit | $fill in the blank cde9000a3faf056_6 |
Labor Expense | $fill in the blank cde9000a3faf056_8 |
Depreciation Expense | fill in the blank cde9000a3faf056_10 |
Selling Expense | fill in the blank cde9000a3faf056_12 |
Administrative Expense | fill in the blank cde9000a3faf056_14 |
Other Expenses | fill in the blank cde9000a3faf056_16 |
Allocated Costs (Uncontrollable) | fill in the blank cde9000a3faf056_18 |
Research and Development (Uncontrollable) | fill in the blank cde9000a3faf056_20 |
Marketing Costs (Uncontrollable) | fill in the blank cde9000a3faf056_22 |
Total Expenses | $fill in the blank cde9000a3faf056_23 |
Pretax Income | $fill in the blank cde9000a3faf056_25 |
Income Tax Expense (21% of Pretax Income) | fill in the blank cde9000a3faf056_27 |
Net Income | $fill in the blank cde9000a3faf056_29 |
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- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardFinancial 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) $2,035 Labor expense 41,580 Sales 188,000 Research and development (uncontrollable) 310 Depreciation expense17,000 Net income/(loss) ? Cost of goods sold 118,440 Selling expense 1,240 Total expenses ? Marketing costs (uncontrollable) 800 Administrative expense 690 Income tax expense (21% of pretax income) ? Other expenses 310arrow_forwardi am confused for this question please provide correct answerarrow_forward
- The following information is given to you from which you are required to prepare a Statement of Cost and Sales for the period ended on 30th June 2023:Consumable material: KOpening stock 20,000Purchases 122,000Closing stock 10,000Direct wages 36,000Direct Expenses 24,000Factory overheads 50 % of direct wagesOffice and administration overheads 20% of works costSelling and distribution expenses K3 per unit soldUnits of finished goods:In hand at the beginning of the period (Value K12,500) 500Units produced during the period 12,000In hand at the end of the period 1,500Profit on selling price 20% There is no work-in-progress either at the beginning or at the end of the period.arrow_forwardA condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year ended December 31 is as follows: Sales $3,920,000 Cost of goods sold 2,625,200 Gross profit $ 1,294,800 Operating expenses 746,000 Income from operations $ 548,800 Invested assets $2,800,000 Assume that the Electronics Division received no charges from service departments. The president of Gihbli Industries Inc. has indicated that the division’s return on a $2,800,000 investment must be increased to at least 22.4% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $560,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would be less than the amount of depreciation expense on the old equipment by $100,800. This decrease in expense would be included as part of the cost of goods sold. Sales would remain…arrow_forwardsssaarrow_forward
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