The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below, Income statement Increase/decrease Revenue 2016($) 2015($) Amount Percent Total sales 219,827 205,852 Sales return and allowance 8,512 7,983 Net sales Cost of goods sold Beginning inventory on January 1 42,816 40,512 Purchases 97,523 94,812 Ending inventory, December 31 43,182 42,521 Cost of goods sold Gross profit from sales Operating expenses Salary 28,940 27,000 Insurance 800 750 Utilities 1,700 1,580 Rent 3,600 3,000 Depreciation 2,000 2,400 Total operating expenses Net income

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Answer 1

Question

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

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Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $31,800. Following is a summary of activities during this accounting period: Betty Smith, capital withdrawn: $17,100 Revenue from income tax preparation: $71,400 Revenue from monthly clients: $45,600 Salaries expense: $11,000 Advertising expense: $630 Rent expense: $7,000 Automobile expense: $1.100 Office supplies expense: $7,200. Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital account at the end of the period. Following are the account balances at the end of this accounting period (except Betty Smith, Capital): Cash: $59,600 Accounts receivable: $3,800 Office furniture and fixtures: $12,200 Office machines and computers: $17,000 Automobile: $8,300 Accounts…

A manufacturer’s contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the two separate cases below. Unit selling price decreases by 5% and units sold and produced increase by 8%. Hint: A unit increase has both a sales and costs impact. Fixed costs increase by $20,000, variable costs per unit decrease by $2, and units sold and produced increase by 500 Use the table below to figure out the Sales, Variable Cost, Contribution Margin, Fixed Cost, and Income (loss) of each question.

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Answer 2

Question

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

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Answer 3

Question

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

Expert Solution & Answer

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See solution

Answer 5

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

Answer 6

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

Answer 7

Chapter 21, Problem 6PT

To determine

To calculate: The net sales, cost of goods sold and net income and also complete the horizontal analysis of the comparative balance sheet provided below,

Income statement

Increase/decrease

Revenue

2016($)

2015($)

Amount

Percent

Total sales

219,827

205,852

Sales return and allowance

8,512

7,983

Net sales

Cost of goods sold

Beginning inventory on January 1

42,816

40,512

Purchases

97,523

94,812

Ending inventory, December 31

43,182

42,521

Cost of goods sold

Gross profit from sales

Operating expenses

Salary

28,940

27,000

Insurance

800

750

Utilities

1,700

1,580

Rent

3,600

3,000

Depreciation

2,000

2,400

Total operating expenses

Net income

Answer 8

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Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 21.1 - Prob. 1-1SC Ch. 21.1 - Prob. 1-2SC Ch. 21.1 - Prob. 1-3SC Ch. 21.1 - Prob. 1-4SC Ch. 21.1 - Prob. 2-1SC Ch. 21.1 - Prob. 2-2SC Ch. 21.1 - Prob. 2-3SC Ch. 21.1 - Prob. 2-4SC Ch. 21.1 - Prob. 3-1SC Ch. 21.1 - Prob. 3-2SC

Solution Summary: The author explains how to calculate net sales, cost of goods sold, and net income and complete the horizontal analysis of the comparative balance sheet.

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Chapter 21 Solutions

Income statement
			Increase/decrease
Revenue	2016($)	2015($)	Amount	Percent
Total sales	219,827	205,852
Sales return and allowance	8,512	7,983
Net sales

Cost of goods sold
Beginning inventory on January 1	42,816	40,512
Purchases	97,523	94,812
Ending inventory, December 31	43,182	42,521
Cost of goods sold

Gross profit from sales

Operating expenses
Salary	28,940	27,000
Insurance	800	750
Utilities	1,700	1,580
Rent	3,600	3,000
Depreciation	2,000	2,400
Total operating expenses

Net income