In the year 2017, Pyramid Consulting had the following contribution income statement: PYRAMID CONSULTING Contribution Income Statement For the Year 2017 Sales revenue $ 1,300,000 Variable costs Cost of services $ 420,000 Selling and administrative 200,000 (620,000) Contribution margin 680,000 Fixed Costs -selling and administrative (285,000) Before-tax profit 395,000 Income taxes (36%) (142,200) After-tax profit $ 252,800 Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income. Use rounded contribution margin (2 decimal places) for variable cost/contribution margin computations. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers. PYRAMID CONSULTING Income Statement For the Year 2017 Sales Answer Variable costs Answer Contribution margin Answer Fixed costs Answer Net income before taxes Answer Income taxes (36%) Answer Net income after taxes Answer
In the year 2017, Pyramid Consulting had the following contribution income statement: PYRAMID CONSULTING Contribution Income Statement For the Year 2017 Sales revenue $ 1,300,000 Variable costs Cost of services $ 420,000 Selling and administrative 200,000 (620,000) Contribution margin 680,000 Fixed Costs -selling and administrative (285,000) Before-tax profit 395,000 Income taxes (36%) (142,200) After-tax profit $ 252,800 Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income. Use rounded contribution margin (2 decimal places) for variable cost/contribution margin computations. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers. PYRAMID CONSULTING Income Statement For the Year 2017 Sales Answer Variable costs Answer Contribution margin Answer Fixed costs Answer Net income before taxes Answer Income taxes (36%) Answer Net income after taxes Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
In the year 2017, Pyramid Consulting had the following contribution income statement:
| PYRAMID CONSULTING Contribution Income Statement For the Year 2017 |
||
|---|---|---|
| Sales revenue | $ 1,300,000 | |
| Variable costs | ||
| Cost of services | $ 420,000 | |
| Selling and administrative | 200,000 | (620,000) |
| Contribution margin | 680,000 | |
| Fixed Costs -selling and administrative | (285,000) | |
| Before-tax profit | 395,000 | |
| Income taxes (36%) | (142,200) | |
| After-tax profit | $ 252,800 |
Prepare an abbreviated contribution income statement to verify that the solution to requirement (d) will provide the desired after-tax income.
Use rounded contribution margin (2 decimal places) for variable cost/contribution margin computations. Round your answers to the nearest dollar. Use rounded answers for subsequent calculations. Do not use negative signs with any of your answers.
| PYRAMID CONSULTING Income Statement For the Year 2017 |
|
|---|---|
| Sales | Answer
|
| Variable costs | Answer
|
| Contribution margin | Answer
|
| Fixed costs | Answer
|
| Net income before taxes | Answer
|
| Income taxes (36%) | Answer
|
| Net income after taxes | Answer
|
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