STAR Company's Statement of Comprehensive Income in 2023 revealed Sales amounting to P9,500,000. Sales Discounts and Sales Returns and Allowances are P300,000 and P200,000, respectively. Cost of Goods Sold amounted to P4,500,000. The operating expenses incurred by the company are P1,200,000 while the interest expense is P560,000. The tax rate is 30% The 2023 Statement of Financial Position of STAR Company shows Total Assets of P6, 500,000 and Total Shareholders' Equity of P4,000,000. Last year, the Total Liabilities and Total Shareholders' Equity were P3,000,000 and P5,000,000, respectively. Calculate the Return on Sales of STAR Company.

STAR Company's Statement of Comprehensive Income in 2023 revealed Sales amounting to P9,500,000. Sales Discounts and Sales Returns and Allowances are P300,000 and P200,000, respectively. Cost of Goods Sold amounted to P4,500,000. The operating expenses incurred by the company are P1,200,000 while the interest expense is P560,000. The tax rate is 30% The 2023 Statement of Financial Position of STAR Company shows Total Assets of P6, 500,000 and Total Shareholders' Equity of P4,000,000. Last year, the Total Liabilities and Total Shareholders' Equity were P3,000,000 and P5,000,000, respectively. Calculate the Return on Sales of STAR Company.

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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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. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
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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