Sales Cost of goods sold Gross profit Selling & administrative expense Operating profit Interest expense Income before taxes Taxes (35%) Income after taxes 20x1 $ 2,620,000 2,400,000 $ 220,000 234,000 $ -14,000 45,600 $ -59,600 -20,860 $ -38,740 a. Cost of goods sold to sales b. Selling and administrative expense to sales c. Interest expense to sales 20X1 for each year, compute the following ratios and indicate how the change in each ratio will aff rofitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places. % 20x2 $ 3,770,000 2,380,000 $ 1,390,000 264,000 % % $ 1,126,000 52,400 $ 1,073,600 375,760 $ 697,840 20X2 % % % Profitability

Sales Cost of goods sold Gross profit Selling & administrative expense Operating profit Interest expense Income before taxes Taxes (35%) Income after taxes 20x1 $ 2,620,000 2,400,000 $ 220,000 234,000 $ -14,000 45,600 $ -59,600 -20,860 $ -38,740 a. Cost of goods sold to sales b. Selling and administrative expense to sales c. Interest expense to sales 20X1 for each year, compute the following ratios and indicate how the change in each ratio will aff rofitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places. % 20x2 $ 3,770,000 2,380,000 $ 1,390,000 264,000 % % $ 1,126,000 52,400 $ 1,073,600 375,760 $ 697,840 20X2 % % % Profitability

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
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