Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured $267,820 Selling expenses 89,460 Administrative expenses 47,300 Sales 569,840 Finished goods inventory, January 1 64,390 Finished goods inventory, January 31 58,690 For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income. (a) Bandera Manufacturing Company Cost of Goods Sold January 31 $fill in the blank a5478ffe7014fe8_2 fill in the blank a5478ffe7014fe8_4 $fill in the blank a5478ffe7014fe8_6 fill in the blank a5478ffe7014fe8_8 $fill in the blank a5478ffe7014fe8_10 (b) Bandera Manufacturing Company Gross Profit January 31 $fill in the blank b2846803800df87_2 fill in the blank b2846803800df87_4 $fill in the blank b2846803800df87_6 (c) Bandera Manufacturing Company Net Income January 31 $fill in the blank cb31d3ffb014f83_2 Operating expenses: $fill in the blank cb31d3ffb014f83_4 fill in the blank cb31d3ffb014f83_6 Total operating expenses fill in the blank cb31d3ffb014f83_7 $fill in the blank cb31d3ffb014f83_9
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company
The following information is available for Bandera Manufacturing Company for the month ending January 31:
| Cost of goods manufactured | $267,820 |
| Selling expenses | 89,460 |
| Administrative expenses | 47,300 |
| Sales | 569,840 |
| Finished goods inventory, January 1 | 64,390 |
| Finished goods inventory, January 31 | 58,690 |
For the month ended January 31, determine Bandera's (a) cost of goods sold, (b) gross profit, and (c) net income.
(a)
| Bandera Manufacturing Company | |
| Cost of Goods Sold | |
| January 31 | |
| $fill in the blank a5478ffe7014fe8_2 | |
| fill in the blank a5478ffe7014fe8_4 | |
| $fill in the blank a5478ffe7014fe8_6 | |
| fill in the blank a5478ffe7014fe8_8 | |
| $fill in the blank a5478ffe7014fe8_10 |
(b)
| Bandera Manufacturing Company | |
| Gross Profit | |
| January 31 | |
| $fill in the blank b2846803800df87_2 | |
| fill in the blank b2846803800df87_4 | |
| $fill in the blank b2846803800df87_6 |
(c)
| Bandera Manufacturing Company | ||
| Net Income | ||
| January 31 | ||
| $fill in the blank cb31d3ffb014f83_2 | ||
| Operating expenses: | ||
| $fill in the blank cb31d3ffb014f83_4 | ||
| fill in the blank cb31d3ffb014f83_6 | ||
| Total operating expenses | fill in the blank cb31d3ffb014f83_7 | |
| $fill in the blank cb31d3ffb014f83_9 |
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