Principles of Financial Accounting.
24th Edition
ISBN: 9781260158625
Author: Wild
Publisher: MCG
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Chapter 1, Problem 20E
To determine
Prepare income statement of Company F.
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CERVEZA CORPORATION
Comparative Income Statement
This Year
Last Year
Sales (all on account) ............................................ $452,000
$388,000
Less cost of goods sold ......................................... 260,000
221,000
Gross margin ......................................................... 192,000
167,000
Less operating expenses ........................................ 104,000
89,000
Net operating income ............................................ 88,000
78,000
Less interest expense ............................................. 8,000
8,000
Net income before taxes ........................................ 80,000
70,000
Less income taxes (30%) ...................................... 24,000
21,000
Net income ............................................................ $ 56,000
$ 49,000
CERVEZA CORPORATION
Comparative Balance Sheet…
CERVEZA CORPORATION
Comparative Income Statement
This Year
Last Year
Sales (all on account) ............................................ $452,000
$388,000
Less cost of goods sold ......................................... 260,000
221,000
Gross margin ......................................................... 192,000
167,000
Less operating expenses ........................................ 104,000
89,000
Net operating income ............................................ 88,000
78,000
Less interest expense ............................................. 8,000
8,000
Net income before taxes ........................................ 80,000
70,000
Less income taxes (30%) ...................................... 24,000
21,000
Net income ............................................................ $ 56,000
$ 49,000
CERVEZA CORPORATION
Comparative Balance Sheet…
CERVEZA CORPORATION
Comparative Income Statement
This Year
Last Year
Sales (all on account) ............................................ $452,000
$388,000
Less cost of goods sold ......................................... 260,000
221,000
Gross margin ......................................................... 192,000
167,000
Less operating expenses ........................................ 104,000
89,000
Net operating income ............................................ 88,000
78,000
Less interest expense ............................................. 8,000
8,000
Net income before taxes ........................................ 80,000
70,000
Less income taxes (30%) ...................................... 24,000
21,000
Net income ............................................................ $ 56,000
$ 49,000
CERVEZA CORPORATION
Comparative Balance Sheet…
Chapter 1 Solutions
Principles of Financial Accounting.
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - If the assets of a company increase by 100,000...Ch. 1 - Brunswick borrows 50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Identify three actual businesses that offer...
Ch. 1 - Describe the internal role of accounting for...Ch. 1 - Prob. 7DQCh. 1 - What type of accounting information might be...Ch. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Describe the three basic forms of business...Ch. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Identify the two main categories of accounting...Ch. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Give two examples of expenses a business might...Ch. 1 - What is the purpose of the statement of retained...Ch. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - GOOGLE Access the SEC EDGAR database (SEC.gov) and...Ch. 1 - Understanding accounting Choose from the following...Ch. 1 - Identifying accounting users C2 Identify the...Ch. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Identifying accounting principles and assumptions...Ch. 1 - Applying the accounting equation A1 a. Total...Ch. 1 - Applying the accounting equation Use the...Ch. 1 - Use Google 's December 31, 2017, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Classifying activities reflected in the accounting...Ch. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Using the accounting equation Determine the...Ch. 1 - Using the accounting equation Answer the following...Ch. 1 - Analysis using the accounting equation Zen began a...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions using the...Ch. 1 - Prob. 14ECh. 1 - Preparing an income statement On October 1, Ebony...Ch. 1 - Preparing a statement of retained earnings Use the...Ch. 1 - Prob. 17ECh. 1 - Preparing a statement of cash flows Use the...Ch. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Match each transaction a through e to one of tire...Ch. 1 - Prob. 22ECh. 1 - Using the accounting equation A1 Answer the...Ch. 1 - Identifying effects of transactions on financial...Ch. 1 - Computing missing information using accounting...Ch. 1 - Preparing an income statement P2 As of December...Ch. 1 - Prob. 4APCh. 1 - Prob. 5APCh. 1 - Preparing a statement of cash flows P2 Following...Ch. 1 - Prob. 7APCh. 1 - Prob. 8APCh. 1 - Determining expenses, liabilities. equity, and...Ch. 1 - Prob. 11APCh. 1 - Prob. 12APCh. 1 - Describing business activities C5 A start-up...Ch. 1 - Describing business activities An organization...Ch. 1 - Prob. 1BPCh. 1 - Prob. 3BPCh. 1 - Prob. 4BPCh. 1 - Prob. 5BPCh. 1 - Prob. 6BPCh. 1 - Prob. 8BPCh. 1 - Determining expenses, liabilities, equity, and...Ch. 1 - Prob. 11BPCh. 1 - Identifying risk and return All business decisions...Ch. 1 - Prob. 13BPCh. 1 - Prob. 14BPCh. 1 - Prob. 1SPCh. 1 - COMPANY ANALYSIS Key financial figures for Apple's...Ch. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - ETHICS CHALLENGE Tana Thorne works in a public...Ch. 1 - COMMUNICATING IN PRAC TICE APPLE Refer to this...Ch. 1 - TAKING IT TO THE NET A2 Visit the EDGAR database...Ch. 1 - ENTREPRENEURIAL DECISION APPLE Refer to this...
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- CERVEZA CORPORATION Comparative Income Statement This Year Last Year Sales (all on account) ............................................ $452,000 $388,000 Less cost of goods sold ......................................... 260,000 221,000 Gross margin ......................................................... 192,000 167,000 Less operating expenses ........................................ 104,000 89,000 Net operating income ............................................ 88,000 78,000 Less interest expense ............................................. 8,000 8,000 Net income before taxes ........................................ 80,000 70,000 Less income taxes (30%) ...................................... 24,000 21,000 Net income ............................................................ $ 56,000 $ 49,000 CERVEZA CORPORATION Comparative Balance Sheet…arrow_forwardCERVEZA CORPORATION Comparative Income Statement This Year Last Year Sales (all on account) ............................................ $452,000 $388,000 Less cost of goods sold ......................................... 260,000 221,000 Gross margin ......................................................... 192,000 167,000 Less operating expenses ........................................ 104,000 89,000 Net operating income ............................................ 88,000 78,000 Less interest expense ............................................. 8,000 8,000 Net income before taxes ........................................ 80,000 70,000 Less income taxes (30%) ...................................... 24,000 21,000 Net income ............................................................ $ 56,000 $ 49,000 CERVEZA CORPORATION Comparative Balance Sheet…arrow_forwardRequired information For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31,100 $ 1.90 :. -. - == ....... 9 US Sa Marrow_forward
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How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License