vv. Problem 2-33 Income Statement (LG2-1)Listed below is the income statement for Tom and Sue Travels, Incorporated.TOM AND SUE TRAVELS, INCORPORATEDIncome Statement for Year End 1(in millions of dollars)Net salesLess: Cost of goods soldGross profitsLess: Other operating expensesEarnings before interest, taxes, depreciation, and amortization (EBITDA)Less: DepreciationEarnings before interest and taxes (EBIT)Less: InterestEarnings before taxes (EBT)Less: TaxesNet incomeNet sales$19.6009.000$ 10.6004.150million$ 6.4503.800$ 2.6500.840The CEO of Tom and Sue's wants the company to earn a net income of $3.200 million. Cost of goods sold is expected to be 60percent of net sales, depreciation and other operating expenses are not expected to change, interest expense is expected to increaseto $1.306 million, and the firm's tax rate will be 21 percent. Calculate the net sales needed to produce net income of $3.200 million.Note: Enter your answer in millions of dollars rounded to 3 decimal places. (i.e., Enter 5,500,000 as 5.500.)$ 1.8100.380$ 1.430

Cost of goods sold is actual cost of goods being sold to customers. Gross profit is excess of net…

Answered: Problem 2-33 Income Statement (LG2-1)…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter1: The Role Of Accounting In Business

Section: Chapter Questions

Problem 1.3.5MBA: Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6...

See similar textbooks

Similar questions

Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. The percent that a company adds to its cost of sales to determine the selling price is called a markup. That is Hershey’s markup percent? Round to one decimal place.
Below is financial information ($ values are in millions) in a model. Net income during the year for this company would be: Revenues SG&A Expenses Interest Expense Select one: OA. $4.5 million OB. $3.6 million O C. $16.6 million OD. $0.9 million $67.30 $4.70 $8.10 Cost of Goods Sold Depreciation Tax Rate $43.20 $6.80 20%
Problem 2: Sander Company presents the following information below: Sales P970,000 Cost of Goods Sold Gross profit Total Operating Expenses Taxable income from business Less: Personal Deduction Less: Additional Deduction 387,000 272600 50,000 50,000 Net Taxable Income TaskRequirements : Compute the gross profit, taxable income from business and tax due for Sander Company.
Comparative income statements and balance sheets for F&N are shown below ($ millions): Year 2 Year 1 Income Statement $19,889 6,204 Net sales. $20,092 6,044 Cost of goods Gross profit. Selling, general, and administrative expense Depreciation and amortization expense Interest expense (revenue) 14,048 7,893 803 (308) 13,685 9,221 773 292 3,399 1,222 Income before tax 5,660 1,691 Income tax expense. Net income $ 3,969 $ 2,177 Outstanding shares 3,491 3,481
Goodbye 99 Series Company's comparative balance sheet for 2021 and 2022 and income statement for 2022 are presented below: Goodbye 99 Series Company Comparative Balance Sheet As of December 31 In PHP 2022 2021 Current assets Cash 1,440,571.43 1,103,922.43 3,500,000 Accounts receivable, gross 4,650,000 Less: Allowance for doubtful accounts (345,000) (275,000) Inventories 3,150,000 8,895,571.43 2,800,000 7,128,922.43 Non-current assets Investment in equity securities - FVOCI 1,650,000 1,000,000 Land 9,500,000 10,250,000 Buildings 15,750,000 16,250,000 Less: Accumulated depreciation (5,698,565) 21,201,435 (5,096,315) 22,403,685 30,097,006.43 29,532,607.43 2,980,000 2,325,000 1,150,000 1,763,000 130,000 90,000 183,000.10 124,000 50,000 75,000 1,550,000 6,043,000.10 2,000,000 6,377,000 3,000,000 3,000,000 (182,240.96) 2,817,759.04 (216,286.57) 2,783,713.43 8,860,759.14 9,160,713.43 10,500,000 9,000,000 6,249,000 5,085,000 250,000 (100,000) 4,267,247.29 6,466,894 (30,000) (80,000)…
* ces Use the following information to answer this question. Windswept, Incorporated. 2022 Income Statement. (in millions) Net sales Cost of goods sold. Depreciation Earnings before interest and taxes. Interest paid Taxable income Taxes Net income Cash Accounts receivable Inventory Total Net fixed assets Total assets What is the quick ratio for 20227 $ 9,950 8,060 495 $ 1,395 116 $ 1,279 448 $ 831 Windswept, Incorporated 2021 and 2022 Balance Sheets (in millions) 2021 $290 1,120 1,990 1,785 $3,400 $3,125 3,530 4,150 $ 6,930 $ 7,275 2022 $320 Accounts payable 1,020 Long-term debt Common stock. Retained earnings Total liabilities & equity 2021 $ 1,610 1,160 3,460 700 2022 $1,535 1,360 3,430 950 $ 6,930 $ 7,275
This year Last year 1050 Assets Cash 1530 Marketable securities Accounts receivable Inventories Total current assets 1810 1220 2050 1770 2900 2790 8290 6830 Gross fixed assets 29480 28090 Less: Accumulated depreciation 14680 13140 Net fixed assets 14800 14950 Total assets Liabilities and Stockholders' Equity 23090 21780 Accounts payable Notes payable Accruals 1560 1540 2760 2160 190 350 Total current liabilities 4510 4050 Long-term debt Common stock Retained earnings Total stockholders' equity 5220 4970 9950 9950 3410 2810 13360 12760 Total liabilities and stockholders' equity 23090 21780
Below are the Income Statement of ABC Company for two consecutive years. ABC Company Net Sales Cost of Goods Soldxs3 Year 1 P 5,000,000 880,000 Year 2 P 6,500,000 950,000
Consider the following income statement: Sales Costs Depreciation Taxes Calculate the EBIT. EBIT $748,168 486,752 110,700 Net income 23% Calculate the net income.
Sales COGS Gross profit G&A expenses Sales & Marketing expenses Depreciation Operating income Interest Income Before taxes Income taxes Net income $575,000 $ 1,600,000 $200,000 $ 50,000 $ 100,000 30% $ 700,000 1: Calculate Sales. 2. Calculate Income before taxes. Taxes are 30%, so you know the Net Income (Y) is a percent of "Income before taxes" (X). 3. Calculate the Income tax figure. 4. Calculate Operating Income. 5. Calculate Sales & marketing.
Problem 2: The Statement of Comprehensive Income of Alexis Company is reproduced below: Net sales Cost of goods sold Selling expenses Administrative expenses Interest expense Net income 12/31/20R4 P3,375,000.00 2,092,500.00 540,000.00 270,000.00 148,500.00 P324,000.00 12/31/20R3 P2,700,000.00 1,755,000.00 Required: 1. Perform horizontal analysis for 20R4 using 20R3 as base year. 2. Perform vertical analysis for 20R4 and 20R3 income statement. 324,000.00 243,000.00 108,000.00 P270,000.00

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS