Practice Test: Multi-step Income StatementPrepare a multi-step income statement for Prestige Traders and General Merchandise for the year endedDecember 31,2020 using the information listed below:Cost of Sales – P 348,000Sales - P 600,000Sales Discount -P 11,000Depreciation Expense - P7,350Taxes – P 1,120Sales Returns and Allowances - P 20,000Supplies Expense - P 8,750Rent Expense - P 37,500Salaries Expense - P 150,000|Use the space provided for your answer.

Multi-step income statement is a format of income statement in which each item is classified into…

Answered: multi-step income statement 21. 2020…

Business

Accounting

multi-step income statement 21. 2020 using the informati

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Gross profit margin Gross profit margin= Gross profit' revenue*100 Year Gross profit Revenue Gross…

A: Ratio analysis includes the comparison of the ratios with different companies and situations.

Q: A2 please help.....

A: The year-to-year percentage change is a common way to express the relative change in a financial…

Q: Define annual percentage rate (APR)

A: A rate at which a borrower is ready to pay and depositor is ready to receive the money is known as…

Q: What is the net loss reported in 2024 income statement?

A: Income statement is prepared by the business organization so as to know how much amount of gross…

Q: IRR, NPV, WACC,

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: 22 Operating profit margin is also known as ________________________. a. Earnings before tax b.…

A: Operating profit means profit generated from operating revenues and operating expenses. It does not…

Q: PROFITABILITY RATIOS Gross Margin= Gross Profit/Net Sales Net Profit Margin= Net Profit/ Net Sales…

A: * As per Bartleby policy, in case question have multiple subparts then answer first three only.…

Q: I. Gross profit margin II. Operating profit margin III. Return on equity IV. Current ratio V.…

A: Gross Profit Margin =(Revenue – Cost of Goods Sold) / Revenue x 100, Operating Profit Margin =…

Q: Horizontal analysis involves: Multiple Choice Comparing individual financial statement line items…

A: The horizontal analysis is used to measure the change over the last year. It is helpful for the…

Q: Sunland Manufacturing has provided the following comparative income statements for 2021 and 2022.…

A: Common Size Analysis is also known as Vertical analysis. Common Size analysis mainly refers to the…

Q: Use the information provided (first picture) to calculate the profit margin ratios for 2021 and put…

A: Here, Gross Profit is 1,696,000 Operating Profit is 1,024,000 Net Profit is 704,000 Net Sales is…

Q: Forward-looking information Includes the following except Select one: a. Forecasts of revenues,…

A: Forward looking refers to the future planning.

Q: 5 Examples of Income Items derived from whatever source

A: 'Income from Other Sources' is one of the five types of income subject to taxation, according to the…

Q: current ratio,quick ratio and cash ratio and give recommendation

A: Ratio analysis is the way of analyzing the financial information based on certain metrics computed…

Q: explain each ratio of this list what happened in 2019, 2020, 2021? List of Ratios 2019 2020 2021…

A: Gross profit margin: Formula of Gross Profit Margin=(Sales Revenue - Cost of Sales)Sales Revenue*…

Q: Solve the following ratios from year 2018-2020. Show complete solutions/computations. -OPERATING…

A: Ratio analysis: Ratio analysis is a tool that establishes a relationship between the different…

Q: Zevenue: Product Service Total revenue Cost of revenue: Product Service Total cost of revenue Gross…

A: The common size income statement is a financial statement in which data of 2- 3 years are presented…

Q: Prepare a multiple income statement fro 2019

A: Multiple-step income statement shows net income of the company.

Q: Selected comparative financial statements of Korbin Company follow. Comparative Income Statements…

A: Current Ratio :— It is the ratio of current assets to current liabilities. Common size…

Q: Which of the following pairs of terms related to financial statement analysis expresses each item in…

A: Common-size and trend analysis enable investors and companies to compare the elements that make up…

Q: I need to prepare a compartive income statement for 2 yrs in vertical form. HOw do i calculate the…

A: Vertical analysis: The comparison of an item of a financial statement against the total amount of…

Q: Compute the gross profit under each plan

A: This is a follow-up question. we need to compute the gross profit of each plan. The financial data…

Q: UNADJUSTED TB ADJUSTMENTS ADJUSTED TB INCOME STATEMENT BALANCE SHEET December 31, 2020 December 31,…

A: Income Statement: The Income Statement is one of a company’s core financial statements that shows…

Q: Sales Cost of goods sold. Accounts receivable 2021 $ 424,322 214,661 20,580 Numerator: 2020 $…

A: Working : (1) Trend percent for net sales = Current year net sales / Base year net sales (2) Trend…

Q: What's annual report

A: An annual report is a comprehensive report on a company's activities throughout the…

Q: Problem 1: Comparative income statements for 2020 and 2019 follow. Sales Cost of Sales Gross Profit…

A: Income statement is referred to the financial statement which analyzes the financial performance of…

Q: 10-1 Return on investment usually consists of which two components? Select one: a. dividends and…

A: Explanation- Return on investment (ROI) or return on costs (ROC) is a period by comparing net income…

Q: The current ratio is estimated as follows: Current ratio Particulars Amount (2019) Amount (2020)…

A: Following is the answer to the question.

Q: the company BMO

A: Financial Results Highlights 4th Quarter 2021 vs. 4th Quarter 2020: Net income increased by 36% to…

Q: Knowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice…

A: Working Capital is the operating liquidity of the company which is available to business or entity.…

Q: Define the terms annual percentage rate (APR), effective annual rate (EFF%), and nominalinterest…

A: The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers…

Q: how to calculate NPV of realized revenue in each history (realizations of states) in stochastic…

A: Your answer: There is no definitive answer to this question since it will depend on the specifics…

Q: Projecting NOPAT and NOA Using Parsimonious Forecasting Method Following are Logitech's sales, net…

A: To forecast Logitech's sales, NOPAT, and NOA for fiscal years ended March 31, 2020 through 2023…

Q: Find the coverage ratio and profitability ratio

A: Ratio analysis is used for measuring the financial efficiency, profitability and revenue of an…

Q: Identify six profitability ratios, and write their equations.

A: A quantitative method that provides information about the company including its liquidity,…

Q: __________ provides comparative changes about various line items of each financial statement over…

A: Introduction: Financial statements: Statements like Income statement , Cash flow statements ,…

Q: Problem 17-2A (Algo) Ratlos, common-size statements, and trend percents LO P1, P2, P3 [The following…

A: Current assets are assets in the form of cash or can be converted into cash within a year.Current…

Question

Practice Test: Multi-step Income Statement
Prepare a multi-step income statement for Prestige Traders and General Merchandise for the year ended
December 31,2020 using the information listed below:
Cost of Sales – P 348,000
Sales - P 600,000
Sales Discount -P 11,000
Depreciation Expense - P7,350
Taxes – P 1,120
Sales Returns and Allowances - P 20,000
Supplies Expense - P 8,750
Rent Expense - P 37,500
Salaries Expense - P 150,000|
Use the space provided for your answer.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Concept of multi-step income statement

VIEW

Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Five measures of solvency or profitability
ii The net profit after tax percentage iv The Earning Per Share v The Price Earning ratio b) Discuss briefly the trends revealed by the above ratios.
How is pro forma income statement different from breakeven analysis Please give the answer in at least 150 words
List five ratios that are automatically provided by the vertical analysis of income statements.
Please solve the following, vertical analysis (refer to the formula)
Question 51: In the vertical analysis of an income statement, what is the base (100%) figure? Answer: A. Total expenses B. Total revenues C. Total assets D. Net income
Analyze the Gross profit ratio and give you a report on the same in 2020 and|2019? Gross profit Gross profit ratio= x100 Net sales In 2019= (25,361,421 /63,161,098) x100 =0.401 x100 =40.153% In 2020= (26,796,019/ 63,441,144) x100 =0.422 x100 =42.237%
Multiple choice
Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales Cost of goods sold $ 402,346 $ 308,230 242,212 $ 213,900 194,493 136,896 Gross profit 160,134 113,737 77,004 Selling expenses 57,133 42,536 28,235 Administrative expenses 36,211 27,124 17,754 Total expenses 93,344 69,660 45,989 Income before taxes Income tax expense 66,790 44,077 31,015 12,423 9,036 6,296 Net income $ 54,367 $ 35,041 $ 24,719 KORBIN COMPANY Comparative Balance Sheets December 31 Assets Current assets Long-term investments Plant assets, net Total assets Current liabilities Liabilities and Equity Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 180,932 2021 $ 63,959 116,973 0 2020 $ 42,808 800 106,691 $ 180,932 $ 150,299 $…
Comparative Income Statement Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures part and on the Profitability Measures part. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%. Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other expense (interest) Income before income tax expense Income tax expense Net income Comparative Income Statement For the Years Ended December 31, 20Y6 and 20Y5 $ 20Y6 8,250,000 X (1,242,000) 20Y5 $7,287,000 (3,444,000) $3,843,000 $(1,457,600) (1,106,000) $(2,563,600) $1,279,400 (120,600) $1,158,800 (181,980) $976,820 $ $ $ Increase/(Decrease) Amount 823,000 X…
Exercise 17-4 (Algo) Computing and interpreting common-size percents LO P2 Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) Sales Cost of goods sold Gross profit Operating expenses Net income GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % 780,000 $ 560,000 220,000 130,400 89,600 $ Income Statement Prior Year $ $ $ 660,000 295,400 364,600 251,600 113,000 Prior Year % Reason for Decline in Net Income >