general accounting question Selected information taken from the financial statements of Northwind Devices Co. for the year endedDecember 31, 2024, follows:DescriptionAmountNet cash provided by operations$38,000Cost of goods sold$136,500Selling, general, and administrative expenses $46,000Accounts payable$41,200Dividends paid$52,000Research and development expenses$30,400Merchandise inventory$44,800Provision for income taxes$19,600Net sales$368,200Interest expense$42,700Required:a. Calculate income from operations (operating income) for the year ended December 31, 2024.b. Calculate net income for the year ended December 31, 2024.

Step 1: DefinitionOperating Income (also called operating profit) represents the profit a company…

Answered: Selected information taken from the…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

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Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
The 2021 income statement of Adrian Express reports sales of $14,400,000, cost of goods sold of $8,387,500, and net income of $1,550,000. Balance sheet information is provided in the following table. ADRIAN EXPRESSBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 550,000 $ 710,000 Accounts receivable 1,300,000 950,000 Inventory 1,700,000 1,350,000 Long-term assets 4,750,000 4,190,000 Total assets $ 8,300,000 $ 7,200,000 Liabilities and Stockholders' Equity Current liabilities $ 1,970,000 $ 1,610,000 Long-term liabilities 2,250,000 2,350,000 Common stock 1,900,000 1,900,000 Retained earnings 2,180,000 1,340,000 Total liabilities and stockholders' equity $ 8,300,000 $ 7,200,000 Industry averages for the following four risk ratios are as follows:…
d. Compute ROA. e. Compute profit margin (PM). f. Compute asset turnover (AT). Notes: Round ROA and PM to one decimal place (ex: 10.5%) Round Asset turnover to two decimal places (0.33) ROA PM AT % * % * X
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Presented below is the income statement of Lauren, Inc. for the year ended December 31, 2022: Sales $380,000 Cost of goods sold 225,000 Gross profit 155,000 Operating expenses 95,000 Income before income taxes 60,000 Income taxes 24,000 Net income $36,000 In addition, the following information related to current assets and liabilities is provided. 12/31/2022 12/31/2021 Cash 32,000 20,000 Accounts receivable (net) 65,000 55,000 Inventories 40,600 60,000 Salaries payable 15,000 23,000 Trade accounts payable 39,000 30,000 Income Tax Payable 15,000 18,000 The company also indicates that depreciation expense for the year was $12,500 (included in operating expenses). Required: Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows using the direct method. Prepare a schedule computing…
Calculate the cost of goods sold for the year
The income statement of Sunland Company is shown below. SUNLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,980,000 Cost of goods sold Beginning inventory $1,850,000 Purchases 4,580,000 Goods available for sale 6,430,000 Ending inventory 1,570,000 Cost of goods sold 4,860,000 Gross profit 2,120,000 Operating expenses Selling expenses 410,000 Administrative expenses 760,000 1,170,000 Net income $950,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $170,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000.…
The following information pertains to Peak Heights Company: Income Statement for Current Year Sales $ 85,300 Expenses Cost of goods $ sold 51,675 Depreciation 8,100 expense Salaries 12,000 71,775 expense Net income $ 13,525 Partial Balance Prior Sheet Current year year Accounts $ $ 9,900 receivable 14,400 Inventory 13,700 8,300 Salaries payable 1,550 850 Required: Present the operating activities section of the statement of cash flows for Peak Heights Company using the indirect method. Note: List cash outflows as negative amounts. PEAK HEIGHTS COMPANY Statement of Cash Flows (Partial) Cash flows from operating activities: Accounts receivable increase
The income statement of Sunland Company is shown below. SUNLAND COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,630,000 Cost of goods sold Beginning inventory $1,840,000 Purchases 4,520,000 Goods available for sale 6,360,000 Ending inventory 1,530,000 Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative expenses 660,000 1,110,000 Net income $690,000 Additional information: 1. Accounts receivable decreased $290,000 during the year. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000.…
The income statement of Headland Company is shown below. Headland Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,360,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,200,000 Goods available for sale 6,100,000 Ending inventory 1,610,000 Cost of goods sold 4,490,000 Gross profit 2,870,000 Operating expenses Selling expenses 490,000 Administrative expenses 740,000 1,230,000 Net income $1,640,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $310,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Headland Company, using the indirect method. (Show amounts that decrease cash flow…

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