Presented below is the income statement of Jennifer, Inc.: Sales revenue $389,500 Cost of goods sold 226,000 Gross profit $163,500 Operating expenses 91,900 Income before income taxes 71,600 Income taxes 24,600 Net income $ 47,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,800 Accounts receivable 24,600 Inventories $19,800 Salaries payable (operating expenses) 7,500 Accounts payable 13,700 Income taxes payable 2,600 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $3,000.
Presented below is the income statement of Jennifer, Inc.: Sales revenue $389,500 Cost of goods sold 226,000 Gross profit $163,500 Operating expenses 91,900 Income before income taxes 71,600 Income taxes 24,600 Net income $ 47,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,800 Accounts receivable 24,600 Inventories $19,800 Salaries payable (operating expenses) 7,500 Accounts payable 13,700 Income taxes payable 2,600 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $3,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented below is the income statement of Jennifer, Inc.:
Sales revenue | $389,500 | |
Cost of goods sold | 226,000 | |
Gross profit | $163,500 | |
Operating expenses | 91,900 | |
Income before income taxes | 71,600 | |
Income taxes | 24,600 | |
Net income | $ 47,000 |
In addition, the following information related to net changes in
Debit | Credit | |||
Cash | $12,800 | |||
24,600 | ||||
Inventories | $19,800 | |||
Salaries payable (operating expenses) | 7,500 | |||
Accounts payable | 13,700 | |||
Income taxes payable | 2,600 |
The company also indicates that
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