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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