Income Statement: The income statement of Fairoz store Inc. is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 21,600 24,000 Interest expense 1,500 1,500 Net sales $136.400 $138.000 11.660 12.720 Selling Expense $1,023.0 5.230 Income taxes 99.000 95.000 COGS 770 450 Gain on Sale of land
Income Statement: The income statement of Fairoz store Inc. is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 21,600 24,000 Interest expense 1,500 1,500 Net sales $136.400 $138.000 11.660 12.720 Selling Expense $1,023.0 5.230 Income taxes 99.000 95.000 COGS 770 450 Gain on Sale of land
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....
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![Income Statement: The income statement of Fairoz store Inc. is given for the
years 2020 & 2019.
2020
2019
General and administrative expenses
21.600
24,000
Interest expense
1,500
1.500
Net sales
$136.400
$138,000
Selling Expense
11.660
12,720
$1,023.0
5,230
Income taxes
99.000
95.000
COGS
770
450
Gain on Sale of land](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89205165-92fb-4c09-a090-1661f7e913c0%2F5159984c-0347-4dc7-b1ea-92d9c681ca10%2Fu1anlx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Income Statement: The income statement of Fairoz store Inc. is given for the
years 2020 & 2019.
2020
2019
General and administrative expenses
21.600
24,000
Interest expense
1,500
1.500
Net sales
$136.400
$138,000
Selling Expense
11.660
12,720
$1,023.0
5,230
Income taxes
99.000
95.000
COGS
770
450
Gain on Sale of land
![2. What can you say about the net income for the year 2020?*
O A) Net Income has increased as a result of the increased operating profit.
B) Net Income has decreased as a result of the decreased operating profit which
resulted from the decrease in sale revende
C) Net income is $2,387 representing 1.75% of sales. The company has a overall
decrease in profit compared to the year 2019.
D) Both (B) & (C)
E) None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89205165-92fb-4c09-a090-1661f7e913c0%2F5159984c-0347-4dc7-b1ea-92d9c681ca10%2F3jt67f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. What can you say about the net income for the year 2020?*
O A) Net Income has increased as a result of the increased operating profit.
B) Net Income has decreased as a result of the decreased operating profit which
resulted from the decrease in sale revende
C) Net income is $2,387 representing 1.75% of sales. The company has a overall
decrease in profit compared to the year 2019.
D) Both (B) & (C)
E) None of the above
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