**Beasley, Inc. Financial Overview for Educational Purposes****Reported Financial Figures as of December 31, 2021:**- **Sales Revenue:** $320,000- **Interest Expense:** $13,000- **Salaries Expense:** $32,000- **Utilities Expense:** $44,000- **Income Tax Expense:** $32,000- **Cost of Goods Sold (COGS):** $124,000- **Advertising Expense:** $21,000**Instructions:**Prepare a multiple-step income statement using the data provided above.**Beasley Inc. Multiple-Step Income Statement****For the Year Ended December 31, 2021**A multiple-step income statement is a comprehensive financial document that breaks down operating revenues and expenses to calculate the net income of a company for a specific time period.**Template Structure (Visual):**The income statement includes several sections, each aligned in a columnar format to outline the detailed financial performance:1. **Sales Revenue Section** – Lists total sales made by Beasley Inc. during the fiscal year.2. **Cost of Goods Sold (COGS)** – Lists the direct costs attributable to the production of goods.3. **Gross Profit Calculation** – Displays sales revenue minus COGS.4. **Operating Expenses**: - Salaries Expense - Utilities Expense - Advertising Expense - Interest Expense5. **Total Operating Expenses** – Sum of all operating expenses.6. **Income before Income Taxes** – Gross profit minus total operating expenses.7. **Income Tax Expense** – Taxes payable by the company.8. **Net Income Calculation** – Income before taxes minus income tax expense.Each entry will have a corresponding amount that contributes to deriving an accurate net income figure reflecting Beasley Inc.'s profitability for the year. This structured approach helps in analyzing core business operations separately from non-operating activities and tax expenses, providing a clearer picture of the company’s financial health.

Gross Profit = Sales revenue - Cost of Goods Sold Total Operating Expenses = Salaries expense +…

Answered: Beasley, Inc., reports the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following financial statements relate to Inna Projects Limited:Statement of Comprehensive Income for the year ended 30 June 2018R’000Sales (Credit)8 000Cost of sales2 000Gross profit6 000Operating expenses2 800Operating profit3 200Interest expense220Profit before tax2 980Tax (25%)745Profit after tax2 235Statement of Financial Position as at 30 June 2018ASSETSR’000R’000Non-current assets45 320Current assets13 980Inventory5 080Debtors7 600Bank1 30059 300EQUITY AND LIABILITIESOwners’ equity54 040Capital39 000Retained income15 040Non-current assets3 000Current liabilities2 260Creditors2 26059 300Note: Inventory on 1 July 2017 amounted R3 000 000.Required:Calculate the following ratios and where applicable round off answers correctly to two decimal places:2.1 Gross margin (5)2.2 Inventory turnover (5)2.3 Debtors collection period (5)2.4 Return on own capital (5)2.5 Acid test ratio (5
Al Mawarid Construction Equipment LLC has provided following Income Statement for the year ending 31st Mar 2020: Particulars Amount Sales 180,000 Less: Cost of Goods Sold -90,000 Gross Profit 90,000 Less: Operating Expenses -55,000 Operating Profits (EBIT) 35,000 Less: Financial Charges -15,000 (Interest Paid) Profit Before Tax 20,000 Less: Taxes -3,000 Profit After Tax (Net Profit for the Year) 17,000 Calculate Gross Profit Ratio and Operating Profit Ratio from the above Income Statement.
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When net profit as per cost accounts and financial accounts is given The net profițs of a manufacturing company appeared at 74,000 as per financial records for the year ended 31st March, 2020. The cost books, however, showed a net profit of 88,460 for the same period. A careful scrutiny of the figure from both the sets of accounts reveled the following facts: (i) Income tax provided in financial books { 10,000 { 250 You are required to prepare (a) the reconcilitation statement (b) a Memorandum Reconcilation account (ii) Bank interest credited in financial books (iii) Works overhead under -recovered in cost books { 1,550 (iv) Depriciation charged in financial books { 5,600 (v) Depriciation recoverd in costing books { 6,000 (vi) Administrative overheads over recovered 7850 (vii) Loss due to obsolescene charged in financial accounts 32,800 (viii) Intereast on Investments not includeded in cost accounts { 2,000 (ix) Stores adjustments (Credited in financial books) 3240 (x) Loss due to…
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