FUNDAMENTAL ACCOUNTING PRINCIPLES
24th Edition
ISBN: 9781264044375
Author: Wild
Publisher: McGraw-Hil
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Chapter 1, Problem 22E
Exercise 1-22 Preparing an income statement for a company P2
BMW Group, one of Europe's largest manufacturers, reports the following income statement accounts for the year ended December 31 (euros in millions). Use this information to prepare BMW s income statement for the year ended Dec ember 31.
Revenues,................. £75,350
Selling and administrative costs.........£5,139
Cost of sales..........60,945
Other expenses...4,988
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Required 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
M
Chapter 17
Revenue and expense data for the current calendar year for Smith Electronics Company and for the
electronics industry are as follows. The Smith Electronics Company data are expressed in dollars. The
electronics Industry averages are expressed in percentages.
Smith
Electronics
Electronics
Industry
Company
Average
$3,142,000
103.0%
Sales
3.0%
150,000
Sales returns and allowances
$2,992,000
100.0%
Net sales
60.0%
1,850,000
Cost of goods sold
40.0%
$1,142,000
Gross profit
$750,000
23.0%
Selling expenses
257,000
10.0%
Administrative expenses
33.0%
$1,007,000
Total operating expenses
7.0%
$135,000
Operating income
Other income
50,000
1.5%
$185,000
8.5%
42,500
1.0%
Other expense
Income before income tax
$142,500
7.5%
Income tax expense
5.0%
76,000
$66,500
Net Income
2.5%
a. Prepare a common-sized income statement comparing the results of operations for Smith
Electronics Company with the industry average Round to one decimal place.
b. As far as the data permit, comment on…
#becausesneaker....
HW CH 17
Vertical Analysis of Income Statement
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
Current Year
Previous Year
Sales
Cost of merchandise sold
Selling expenses
Administrative expenses
Income tax expense
Custom Order
Sales
Cost of merchandise
sold
Selling expenses
a. Prepare an income statement in comparative form, statin each item for both years as a percent of
sales. If required, round percentages to one decimal place. Enter all amounts as positive
numbers.
Administrative
expenses
Income tax expense
$483,000
280,140
82,110
86,940
14,490
Innovation Quarter Inc.
Comparative Income Statement
For the Years Ended December 31
Current year
Amount
$483,000
280,140
82,110
86,940
14,490
percentage points, and administrative expenses
net income as a percent of sales
Current year
Percent
%
%
%
%
%
%
$420,000
218,400
79,800
71,400
21,000
%
%
%
Previous year
Amount
$420,000
218,400
79,800
71,400
21,000
Previous year
Percent
b.…
Chapter 1 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Prob. 3DQCh. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three type of services typically offered...Ch. 1 - Prob. 8DQCh. 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 - Prob. 13DQCh. 1 - A business reports its own office stationary on...Ch. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - What events or transactions change equity?Ch. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - 21. Define net income and explain its...Ch. 1 - Identify the four basics financial statements of a...Ch. 1 - Prob. 23DQCh. 1 - 24. Give two examples of expenses a business might...Ch. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - B Explain why investing (assets) and financing...Ch. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - This icon highlights assignments that enhance...Ch. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Identifying items with financial statements P2...Ch. 1 - P2
Classify each of the following items as...Ch. 1 - P2
Classify each of the following items as assets...Ch. 1 - Preparing an income statement P2...Ch. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Exercise 1-2 Identifying accounting users and uses...Ch. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Exercise 1-14 Analyzing return on assets A2 Swiss...Ch. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Exercise 117 Preparing 117 P2 Use the information...Ch. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Exercise 1-22 Preparing an income statement for a...Ch. 1 - Exercise 1-23 Using the accounting equation A1...Ch. 1 - Problem 1-1A Identifying effects of transactions...Ch. 1 - Prob. 2APSACh. 1 - Problem 1-3A Preparing an income statement P2 As...Ch. 1 - Problem 1-4A Preparing a statement of owner's...Ch. 1 - Problem 1-5A Preparing a balance sheet P2 Use the...Ch. 1 - Problem 1-6A Preparing a statement of cash flows...Ch. 1 - Prob. 7APSACh. 1 - Prob. 8APSACh. 1 - Prob. 9APSACh. 1 - Prob. 10APSACh. 1 - Prob. 11APSACh. 1 - Prob. 12APSACh. 1 - Prob. 13APSACh. 1 - Prob. 14APSACh. 1 - Problem 1-1B Identifying effects of transactions...Ch. 1 - Prob. 2BPSBCh. 1 - Prob. 3BPSBCh. 1 - Problem 1-4B Preparing a statement of owner's...Ch. 1 - Prob. 5BPSBCh. 1 - Prob. 6BPSBCh. 1 - Prob. 7BPSBCh. 1 - Prob. 8BPSBCh. 1 - Prob. 9BPSBCh. 1 - Prob. 10BPSBCh. 1 - Prob. 11BPSBCh. 1 - Problem 112BA Identifying risk and return A3 All...Ch. 1 - Prob. 13BPSBCh. 1 - Prob. 14BPSBCh. 1 - On October 1. 2019, Santana Rev launched a...Ch. 1 - Prob. 1AACh. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Visit the EDGAR database at SEC.gov. Access the...Ch. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTN
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