Fill in the missing amounts. Yoste Company Noone Company Sales revenue $90,000 105000 Sales returns and allowances 6000 5,000 Net sales 84,000 100,000 Cost of goods sold 58,000 60000 Gross profit 26000 40,000 Operating expenses 14,380 23000 Net income 11620 17,000 eTextbook and Media X Your answer is incorrect. Calculate the profit margin and the gross profit rate for each company. (Round answers to 1 decimal place, e.g. 15.5%.) Yoste Company Noone Company Profit margin Gross profit rate
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
![### Financial Statements Analysis: Yoste Company and Noone Company
This section presents the comparative financial statements of Yoste Company and Noone Company. The provided data includes elements of the income statement such as sales revenue, net sales, cost of goods sold, gross profit, operating expenses, and net income.
#### Financial Data Breakdown:
| Financial Item | Yoste Company | Noone Company |
|-------------------------------|----------------|--------------------|
| **Sales Revenue** | $90,000 | $105,000 |
| **Sales Returns and Allowances** | $6,000 | $5,000 |
| **Net Sales** | $84,000 | $100,000 |
| **Cost of Goods Sold** | $58,000 | $60,000 |
| **Gross Profit** | $26,000 | $40,000 |
| **Operating Expenses** | $14,380 | $23,000 |
| **Net Income** | $11,620 | $17,000 |
### Part 1: Filling Missing Amounts
The green-highlighted values within the table represent the missing amounts filled in for Sales Returns and Allowances, Cost of Goods Sold, and Operating Expenses for both companies.
### Part 2: Calculating Profit Margin and Gross Profit Rate
Next, we calculate the profit margin and the gross profit rate for each company. To do this, we use the following formulas:
1. **Profit Margin**:
\[
\text{Profit Margin} = (\text{Net Income} / \text{Net Sales}) \times 100
\]
2. **Gross Profit Rate**:
\[
\text{Gross Profit Rate} = (\text{Gross Profit} / \text{Net Sales}) \times 100
\]
Based on the given data, compute the following:
#### Yoste Company
- **Net Sales**: $84,000
- **Net Income**: $11,620
- **Gross Profit**: $26,000
#### Noone Company
- **Net Sales**: $100,000
- **Net Income**: $17,000
- **Gross Profit**: $40,000
### Input Fields for Calculation:
| Calculation | Yoste Company | No](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc5439fb-7298-4f06-8b49-478756150bf5%2F69748030-e7f4-443b-8411-c807397b0ebc%2Fs0qrk54_processed.png&w=3840&q=75)
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