LAG Network Inc.'s balance sheet and income statement are as follows:LAG Network Inc.Income StatementFor Year Ended December 31, 2023SalesCost of goods soldGross profitOperating expenses:Depreciation expenseOther expensesTotal operating expensesProfit from operationsIncome taxesProfitAssets$ 25,200215,800LAG Network Inc.Comparative Balance Sheet Information$ 920,600548,200$372,400241,000$ 131,40014,600$ 116,800December 3120232022CashAccounts receivable$ 81,110 $ 52,800Merchandise inventoryEquipmentAccumulated depreciationTotal assetsLiabilities and Equity40,400287,79036,800235,800$ 491,900Accounts payableIncome taxes payableCommon sharesRetained earnings$ 23,2003,600355,000110,100146,400(63,800)136,800(38,600)$ 423,600$ 35,8002,200349,50036,100Total liabilities and equity$ 491,900$ 423,600Additional information regarding LAG Network Inc.'s activities during 2023:a. Equipment is purchased for $9,600 cash.b. 2,200 common shares are issued for cash at $2.50 per share.c. Declared and paid $42,800 of cash dividends during the year.

Step 1:Step 1: Analyze the Income Statement• Sales Revenue: $920,600• Cost of Goods Sold (COGS):…

Answered: LAG Network Inc.'s balance sheet and…

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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Jester Corporation's most recent income statement appears below: Income Statement Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 300,000 170,000 130,000 50,000 80,000 20,000 60,000 18,000 $ 42,000 The beginning balance of total assets was $240,000 and the ending balance was $236,700. The return on total assets is closest to:
(a) - Make a "Condensed Income Statements". Prepare a horizontal analysis of the income statement data for Vaughn Corporation, using 2021 as a base. (b ) - Make a "Condensed Income Statements". Prepare a vertical analysis of the income statement data for Vaughn Corporation for both years.
Here are comparative financial statement data for Vaughn Company and Mary Company, two competitors. All data are as of December 31, 2022, and December 31, 2021. Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities $ Long-term liabilities Common stock, $10 par Retained earnings (a) Vaughn Company Dollars 2022 $1,842,000 1,040,730 268,932 9,210 53,418 323,500 $314,800 520,500 501,500 64,000 109,000 497,500 173,500 $ 2021 74,800 Vaughn Company 91,000 497,500 153,000 Dollars I Condensed Income Statement Percent % 2022 % Mary Company $561,000 297,330 77.979 3,927 Prepare a vertical analysis of the 2022 income statement data for Vaughn Company and Mary Company. (Round percentages to 1 decimal place, e.g. 12.1%) 83,200 6,732 30,600 138,300 125,400 34,000 28,600 Vaughn Company 2021 4 $78,600 117,000 117,000 39,900 $ 24,200 Condensed Income Statement 34,200 Percent Dollars % % % % % % % % % $ Mary Company…
Data for Kahn, Inc. follows: Kahn, Inc. Comparative Income Statement Years Ended Dec. 31, 2019 and 2018 2019 2018 Net Sales Revenue 550,000 500,000 Expenses: Cost of Goods Sold 245,000 220,000 Selling and Administrative Expenses 100,000 96,000 Other Expenses (Interest Expense) 12,000 9,000 Income Tax Expense 58,000 47,000 Total Expenses 415,000 372,000 Net Income 135,000 128,000 Prepare a horizontal analysis of the comparative income statement of Kahn, Inc. (Round to one decimal place.)
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Retail Corporation reported the following Income Statement for the past two years: Retail Corporation Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $ 30,100,100 $ 26,210,200 Cost of goods sold 22,425,500 18,950,800 Gross profit 7,674,600 7,259,400 Selling expenses 1,525,500 1,480,600 Administrative expenses 1,425,300 1,325,000 Total operating expenses 2,950,800 2,805,600 Income from operations 4,723,800 4,453,800 Interest Expense 190,500 210,600 Other income 62,500 55,500 Income before income tax 4,595,800 4,298,700 Income tax expense 1,608,500 1,312,400 Net income $ 2,987,300 $ 2,986,300 a. What was Retail…
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 2023 Gross sales Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes Net income Current assets: Cash Plant and equipment: Building (net) Land Accounts receivable. Merchandise inventory. Prepaid expenses Total current assets Total assets Assets Total plant and equipment Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Common stock Retained earnings LOGIC COMPANY Comparative Balance Sheet December 31, 2022 and 2023 Long-term liabilities: Mortgage note payable Total liabilities. Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Average day's collection ratio $ 20,200 1,000 $19,200 11,700 $7,500…
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A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a mark up. Job number Y256 was sold for $1,690 and incurred overheads of $694. What was the prime cost of the job? A $489 B $606 C $996 D $1,300
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Below are the Income Statement and Balance Sheet for Palmer Corporation for the years ended 2020 and 2021. Calculate the liquidity ratios in the table to the right for the year ended 2021. Palmer Corporation Comparative Income Statement For the Years Ended December 31, 2021 and 2020 2021 2020 Amount Amount Sales $5,750,900 $4,894,800 Cost of goods sold 3,646,700 3,195,600 Gross profit 2,104,200 1,699,200 Selling expenses 775,500 688,700 Administrative expenses 863,900 815,200 Total operating expenses 1,639,400 1,503,900 Income from operations 464,800 195,300 Other income 102,500 84,600 Income before income tax 567,300 279,900 Income tax expense 200,600 101,200 Net income $366,700 $178,700 Palmer Corporation…

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