The accountant of Latifa Shoe Co. has compiled the following information from the company's records as a basis for an incomestatement for the year ended December 31, 2020.Rent revenue$29,000Interest expense18,000Market appreciation on land above cost31,000Salaries and wages expense (selling)114,800Supplies expense (selling)17,600Income tax23,100Salaries and wages expense (administrative)135,900Other administrative expenses51,700Cost of goods sold496,000Net sales980,00065,000Depreciation on plant assets (70% selling, 30% administrative)Cash dividends declared16,000There were 20,000 shares of common stock outstanding during the year.

Income statement: When all the costs and expenses are subtracted one by one from the sale, then if…

Answered: The accountant of Latifa Shoe Co. has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales $8,740,000 Cost of goods sold 5,370,000 Gross profit 3,370,000 Expenses: Operating expenses $1,520,000 Depreciation expense 194,000 Interest expense 34,000 Income tax expense 344,000 Total expenses 2,092,000 Net income $1,278,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 Assets Current assets: Cash $148,000 $198,000 Accounts receivable 710,000 730,000 Inventory 1,325,000 995,000 Supplies 94,000 69,000 Long-term assets: Equipment 1,070,000 1,070,000 Less: Accumulated depreciation (388,000) (194,000) Total assets $2,959,000 $2,868,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $99,000 $75,000 Interest payable 0 3,400 Income tax payable…
In its income statement for the year ended December 31, 2022, Splish Brothers Inc. reported the following condensed data. Prepare a multiple step income statement , and then calculate the profit margin and gross profit rate. Salaries and wages expenses $576,600 Loss on disposal of plant assets $103,540 Cost of goods sold 1,223,880 Sales revenue 2,740,400 Interest expense 89,460 Income tax expense 31,000 Interest revenue 80,600 Sales discounts 198,400 Depreciation expense 384,400 Utilities expense 136,400
Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue $ 130,200 Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense 53,000 17,500 29,000 10,100 4,900 4,700 3,900 Net income $ 7,100 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,700 $ 8,000 Inventory Accounts payable Salaries payable Utilities payable Prepaid insurance Prepaid rent 3,080 5,500 2,090 6,800 1,100 810 440 270 370 500 440 290 Required: Prepare the operating activities section of the statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)
The following income statement and balance sheets for The Athletic Attic are provided. THE ATHLETIC ATTIC Income Statement For the year ended December 31, 2021 Net sales $8,840,000 Cost of goods sold 5,420,000 Gross profit 3,420,000 Expenses: Operating expenses $1,570,000 Depreciation expense 204,000 Interest expense 44,000 Income tax expense 354,000 Total expenses 2,172,000 Net income $1,248,000 THE ATHLETIC ATTIC Balance Sheets December 31 2021 2020 Assets Current assets: Cash $158,000 $208,000 Accounts receivable 760,000 780,000 Inventory 1,375,000 1,045,000 Supplies 104,000 79,000 Long-term assets: Equipment 1,120,000 1,120,000 Less: Accumulated depreciation (408,000) (204,000) Total assets $3,109,000 $3,028,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $109,000 $85,000 Interest payable 0 4,400 Income tax payable…
The following selected data for the Food Factory Corporation were gathered by the accountants for the year ended December 31, 2020, who are responsible for preparing the financial statements: Cost of goods sold $47,300 Depreciation expense 14,100 Other operating expenses 15,700 Loss on sale of investments 1,900 Gain on sale of capital assets 6,200 Sales revenue 99,700 Interest revenue 7,100 Dividend revenue 3,200 Salary expense 24,700 Interest expense 5,200 Income tax expense 2,700 Net income 4,600 The cash account began the year with a balance of $32,500 and…
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2024 Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Income tax expense Total expenses Net income Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable $1,100,000 610,000 55,000 45,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2024 $107,000 45,500 80,000 3,500 50,000 5,500 2023 $87,500 51,500 57,500 6,000 39,500 12,500 $1,925,000 1,810,000 $115,000 Increase (I) or Decrease (D) $19,500 (I) (D) 6,000 22,500 (I 2,500 (D) 10,500 (I) 7,000 (D)
Wayman Corporation reports the following amounts in its December 31, 2018, income statement. $ 397,000 Income tax expense $ 51,000 Sales revenue Interest expense Salaries expense Utilities expense 21,000 Cost of goods sold 41,000 Advertising expense 51,000 131,000 31,000
The following Information is available from the accounting records of Manahan Co. for the year ended December 31, 2019: Net cash provided by financing activities Dividends paid Loss from discontinued operations, net of tax savings of $39,700 Income tax expense Other selling expenses Net sales Advertising expense Accounts receivable Cost of goods sold General and administrative expenses Net sales Cost of goods sold Gross profit Expenses: Required: a. Calculate the operating Income for Manahan Co. for the year ended December 31, 2019. Advertising expense General and administrative expenses Operating income MANAHAN CO. Operating Income Statement For the year ended December 31, 2019 b. Calculate the company's net Income for 2019. Net income $ $119,000 18, 200 119,100 $ 27,288 11,500 646,600 47,000 59,300 368,562 141,800 0 0 0
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2024: Account Gibson $ (742,000) 327,808 247,808 (12,000) $ (180,000) Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Davis Buildings (net) Equipment (net) Total assets Liabilities Cormon stock Retained earnings, 12/31/24 Total liabilities and stockholders' equity Goodwill Equipment (net) Common stock Buildings (net) Dividends declared $ (798,000) (180,000) 78,808 $ (988,000) $ 211,958 545,000 622,858 617,808 482,000 2,398,808 $ $ (860,000) (630,000) (988,000) $ (2,398,000) Complete this question by entering your answers in the tabs below. Consolidated Income Statement For the Year Ending December 31, 2024 Required A Required B Prepare a consolidated income statement for the year ending December 31, 2024. Note: Enter all amounts as…
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Use the following information for the Problems below. Skip to question [The following information applies to the questions displayed below.]Lansing Company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANYIncome StatementFor Current Year Ended December 31 Sales revenue $ 127,200 Expenses Cost of goods sold 52,000 Depreciation expense 17,000 Salaries expense 28,000 Rent expense 10,000 Insurance expense 4,800 Interest expense 4,600 Utilities expense 3,800 Net income $ 7,000 LANSING COMPANYSelected Balance Sheet Accounts At December 31 Current Year Prior Year Accounts receivable $ 6,600 $ 7,800 Inventory 2,980 2,040 Accounts payable 5,400 6,600 Salaries payable 1,080 800 Utilities payable 420 260 Prepaid insurance 360 480 Prepaid rent…

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