FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Topic Video
Question
EXHIBIT 1: YALLA MOMOS INCOME STATEMENT FOR THE YEAR ENDING 2015 (IN AED) |
|||
Net Revenue |
504,000 |
||
Expenses |
|
||
Cost of food sales |
151,200 |
||
Rent |
68,000 |
||
Salaries |
54,000 |
||
Administrative costs |
23,000 |
||
|
30,200 |
||
Utilities |
13,000 |
||
Miscellaneous expenses |
15,800 |
||
Advertising costs |
0 |
||
Interest |
13,000 |
||
Net Profit |
135,800 |
EXHIBIT 2: YALLA MOMOS PROJECTIONS FOR THE YEAR 2016 (IN AED) |
||
|
Without expansion |
With expansion |
Rent |
75,000 |
88,000 |
Salaries |
61,400 |
75,000 |
Administrative costs |
26,000 |
34,000 |
Depreciation |
34,720 |
38,360 |
Utilities |
14,000 |
19,000 |
Miscellaneous expenses |
17,060 |
19,180 |
Advertising costs |
8,000 |
12,000 |
Interest |
13,000 |
16,000 |
Source: Company documents, Ivey publications
Required:
- Calculate the 2015 BEP and Margin of safety (MOS) in quantity and monetary terms.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous YearSales $4,000,000 $3,600,000Cost of goods sold 2,280,000 1,872,000Selling expenses 600,000 648,000Administrative expenses 520,000 360,000Income tax expense 240,000 216,000a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to the nearest whole percentage.b. Comment on the significant changes disclosed by the comparative income statement.arrow_forwardtable belom shows the financial statements of a fan components supplier company that started it's operation in 1st January 2021.Calculate the profit and loss statement for the year ended December 2021.arrow_forwardThe following information is taken from the financial statements of Down Home Deli for the last three years. The owner, John Walton is quite pleased to see that his sales are growing steadily. 2018 2017 2016 Sales $ 61,500 $ 50,400 $ 42,000 Cost of goods sold 27,670 21,170 16,800 Operating income 7,530 6,050 4,620 Net income 3,075 4,030 2,940 Instructions: (a) Calculate gross profit margin, profit margin, and profit margin using operating income. (b) Comment on whether the Deli is, in fact, doing better over the three years as John believes.arrow_forward
- The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the Year Ended December 31, 2024 Net sales $8,880,000 Cost of goods sold 5,440,000 Gross profit 3,440,000 Expenses: Operating expenses $1,590,000 Depreciation expense 208,000 Interest expense 48,000 Income tax expense 358,000 Total expenses 2,204,000 Net income $1,236,000 THE ATHLETIC ATTIC Balance Sheets December 31 2024 2023 Assets Current assets: Cash $162,000 $212,000 Accounts receivable 780,000 800,000 Inventory 1,395,000 1,065,000 Supplies 108,000 83,000 Long-term assets: Equipment 1,140,000 1,140,000 Less: Accumulated depreciation (416,000) (208,000) Total assets $3,169,000 $3,092,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $113,000 $89,000 Interest payable 0 4,800 Income tax payable 39,000 30,800…arrow_forwardI need solution fastarrow_forwardHorizontal Analysis of the Statement of Income Revenue Cost of sales Gross profit Other income Distribution costs Salaries Commissions Travelling Advertising Depreciation/amortization Total distribution costs Administrative expenses Salaries Leasing Depreciation/amortization Total administrative expenses Finance costs Total other income/expenses Profit before taxes Income tax expense Profit for the year 2013 2014 $ Change % Change 350,000 420,000 177,000 209,000 173,000 211,000 5,000 5,000 50,000 60,000 2,000 3,000 2,000 3,000 3,000 5,000 20,000 20,000 77,000 91,000 30,000 38,000 5,000 7,000 18,000 20,000 53,000 65,000 10,000 14,000 135,000 165,000 38,000 46,000 13,000 13,000 25,000 33,000 70,000 20.00% 2015 $ Change % Change 800,000 380,000 406,000 394,000 5,000 80,000 5,000 5,000 10,000 40,000 140,000 60,000 10,000 40,000 110,000 30,000 275,000 119,000 42,000 77,000 90.48%arrow_forward
- Please give me answerarrow_forward11.1 Entries for the Warren Clinic 2016 income statement are listed in the following exhibit in alphabetical order. Reorder the data to reflect income statement format. Depreciation expense $ 90,000 General/administrative expenses 70,000 Interest expense 20,000 Net income 30,000 Nonoperating income 40,000 Other operating revenue 10,000 Patient service revenue 440,000 Provision for bad debts 40,000 Purchased clinic services 90,000 Salaries and benefits 150,000arrow_forwardThe following is the Room Department Statement of profit for Calm Shore Hotel for the year 31 December 2023. Revenue $ $ $ Room Sales 800,000 Allowances 2,500 Net Revenue 797,500 Expenses Salaries & Wages 100,000 Employee Benefits 23,000 Total Payroll & related expenses 77,000 Other Expenses Commissions 2,000 Contract Cleaning 5,000 Laundry & Dry Cleaning 6,500…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education