Questions:Does a low return on sales indicate a weak company? (Y/N). Explain your answer.Do greater Net sales always result in greater net income? (Y/N) Why?Examine the financial information above and comment on the item that you find interesting. Activity # 1Presented below are the income statement accounts for Troops Store. Prepare amulti-step statement of comprehensive income for Troops Store for year endedDecember 31, 2019.Sales Return and AllowancesPhp 10,000.00Officer's Salaries40,000.00Depreciation- Building10,000.00Advertising30,000.00Other expenses1,000.00Sales Discounts5,000.00Cost of Goods Sold275,000.00Interest Expense4,000.00Transportation and Travel10,000.00Depreciation- Delivery Truck5,000.00Sales400,000.00Insurance10,000.00Rent20,000.00Sales Salaries20,000.00

Multi Step statement of comprehensive income shows all incomes and all expenses of the business at…

Questions: Does a low return on sales indicate a weak company? (Y/N). Explain your answer. Do greater Net sales always result in greater net income? (Y/N) Why? Examine the financial information above and comment on the item that you find interesting.

Questions: Does a low return on sales indicate a weak company? (Y/N). Explain your answer. Do greater Net sales always result in greater net income? (Y/N) Why? Examine the financial information above and comment on the item that you find interesting.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 48E

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Questions:

Does a low return on sales indicate a weak company? (Y/N). Explain your answer.
Do greater Net sales always result in greater net income? (Y/N) Why?
Examine the financial information above and comment on the item that you find interesting.

Activity # 1
Presented below are the income statement accounts for Troops Store. Prepare a
multi-step statement of comprehensive income for Troops Store for year ended
December 31, 2019.
Sales Return and Allowances
Php 10,000.00
Officer's Salaries
40,000.00
Depreciation- Building
10,000.00
Advertising
30,000.00
Other expenses
1,000.00
Sales Discounts
5,000.00
Cost of Goods Sold
275,000.00
Interest Expense
4,000.00
Transportation and Travel
10,000.00
Depreciation- Delivery Truck
5,000.00
Sales
400,000.00
Insurance
10,000.00
Rent
20,000.00
Sales Salaries
20,000.00

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Activity # 1 Presented below are the income statement accounts for Troops Store. Prepare a multi-step statement of comprehensive income for Troops Store for year ended December 31, 2019. Sales Return and Allowances Php 10,000.00 Officer's Salaries 40,000.00 Depreciation- Building 10,000.00 Advertising 30,000.00 Other expenses 1,000.00 Sales Discounts 5,000.00 Cost of Goods Sold 275,000.00 Interest Expense 4,000.00 Transportation and Travel 10,000.00 Depreciation- Delivery Truck 5,000.00 Sales 400,000.00 Insurance 10,000.00 Rent 20,000.00 Sales Salaries 20,000.00 Questions: 1. For company above, compute return on sales (Net Income/ Net Sales) and comment on the results. Return on sales: 2. Does a low return on sales indicate a weak company ? (Y/N). Explain your answer. 3. Do greater Net sales always result in greater net income? (Y/N) Why? 4. Examine the financial information above and comment on one item that you find interesting. Holistic Rubrics for Essay: Quality of Writing-20%…
Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
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