(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; begins inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income
(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; begins inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.) Jefferson Airplane Parts, Inc. Income Statement January 1 to March 31, 2019 Revenue Gross Sales Less: Sales Discounts Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 Net Purchases Goods Available for Sale Less: Merchandise Inventory, Mar. 31 Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Tax Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Another way to look at the concept of inventory turnover is by measuring sales per square foot. Taking the average inventory at retail and dividing it by the number of square feet devoted to a particular product will give you average sales per square foot. When you multiply this figure by the inventory turnover rate, you get the annual sales per square foot.
Transcribed Image Text:(b) You have just received a report with the second-quarter figures. Prepare a comparative income statement with horizontal analysis for the first and second quarter of 2019: gross sales, $296,000; sales discounts, $41,300; beginning inventory,
April 1, $103,100; ending inventory, June 30, $96,580; net purchases, $84,320; total operating expenses, $126,500; and income tax, $16,500. (Round percentages to one decimal place.)
Jefferson Airplane Parts, Inc.
Comparative Income Statement
First and Second Quarter, 2019
Increase (Decrease)
2nd Quarter
1st Quarter
Revenue
Gross Sales
Less: Sales Discounts
Net Sales
Cost of Goods Sold
Merchandise Inventory, Beginning
Net Purchases
Goods Available for Sale
Less: Merchandise Inventory, Ending.
Cost of Goods Sold
Gross Margin
Operating Expenses
Income before Income Tax
Income Tax
Net Income
$
Amount
Percent
199
Transcribed Image Text:(a) As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $44,500; beginning
inventory, Jan. 1, $86,500; ending Inventory, March 31, $103.100; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,650. (Round percentages to one decimal place.)
Jefferson Airplane Parts, Inc.
Income Statement
January 1 to March 31, 2019
Revenue
Gross Sales
Less: Sales Discounts
Net Sales
Cost of Goods Sold
Merchandise Inventory, Jan. 1
Net Purchases
Goods Available for Sale
Less: Merchandise Inventory, Mar. 31
Cost of Goods Sold
Gross Margin
Operating Expenses
Income before Taxes
Income Tax
Net Income
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