The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Locomotive Corporate Division Division Total Cost of goods sold $46,200 $28,800 Direct operating expenses 27,400 21,700 Sales 90,700 67,400 Interest expense $2,600 General overhead 19,600 Income tax 4,000 The gross profit for the Rails Division is Oa. $63,300 Ob. $17,100 Oc. $44,500 Od. $90,700

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Locomotive Corporate Division Division Total Cost of goods sold $46,200 $28,800 Direct operating expenses 27,400 21,700 Sales 90,700 67,400 Interest expense $2,600 General overhead 19,600 Income tax 4,000 The gross profit for the Rails Division is Oa. $63,300 Ob. $17,100 Oc. $44,500 Od. $90,700

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 financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $46,700 $29,300 Direct operating expenses 26,400 20,400 Sales 98,200 69,700 Interest expense $2,200 General overhead 19,900 Income tax 4,500 The net income for Train Corporation is a.$73,800 b.$91,900 c.$18,500
Umbrella Company and its divisions are engaged solely in manufacturing operations . The following data pertain to the industries in which operations were conducted for the year ended December 31, 2014: Revenue From Revenue Operating Identifiable Segments outsiders from within Profit Assets A 18,000,000 2,000,000 3,600,000 40,000,000 B 13,000,000 3,000,000 2,800.000 36,000,000 C 5,000,000 7,000,000 1,500,000 2,400,000 1,200,000 28,000,000 16,000,000 D 4,500,000 E 5,400,000 3,600,000 1,400,000 14,000,000 6,000,000 140,000,000 F 3,000,000 600,000 Total 48,900,000 17,100,000 12,000,000 In its segment information for 2014, how many reportable segments does Umbrella Company have?
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Seaforce Manufacturing Inc. Income Statement Year Ended December 31, 20X5 Sale $ 340,000 Cost of goods sold $ 250,100 Gross Profit $ 89,900 Operating Expenses $ 55,000 Loss on Sale of equipment $ 2,500 $ 57,500 Profit from Operations $ 32,400 Other expenses Interest Expense $ 3,500 Profit before Income Tax $ 28,900 Income Tax Expense $ 12,000 Profit $ 16,900 Additional Information: Operating expenses include depreciation expense of $10,000 Accounts Payable related to the purchase of inventory Equipment that cost $12,500 was sold at a loss of $2,500 New equipment was purchased during the year for $8,500 Dividends declared and paid in 20X5 totaled $3,000 Common shares were sold for $12,000 cash Interest payable in 20X5 was $800 greater than interest payable in 20X4 The company uses IFRS and do not treat dividends as part of operations Seaforce Manufacturing Inc. comparative balance sheet at December 31 20X5…
Ivanhoe Company is involved in four separate industries. The following information is available for each of the four industries. Operating Profit (Loss) $16,780 Operating Segment Total Revenue Identifiable Assets $63,800 $160,370 X 10,990 2,550 80,185 Y 27,500 (3,240) 19,355 7,710 1,210 16,590 $110,000 $17,300 $276,500 Determine which of the operating segments are reportable based on the: Reportable Segments (a) Revenue test. (b) Operating profit (loss) test. (c) Identifiable assets test.
A condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year ended December 31 is as follows: Sales $3,920,000 Cost of goods sold 2,625,200 Gross profit $ 1,294,800 Operating expenses 746,000 Income from operations $ 548,800 Invested assets $2,800,000 Assume that the Electronics Division received no charges from service departments. The president of Gihbli Industries Inc. has indicated that the division’s return on a $2,800,000 investment must be increased to at least 22.4% by the end of the next year if operations are to continue. The division manager is considering the following three proposals: Proposal 1: Transfer equipment with a book value of $560,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would be less than the amount of depreciation expense on the old equipment by $100,800. This decrease in expense would be included as part of the cost of goods sold. Sales would remain…
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The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Locomotive Division Cost of goods sold Direct operating expenses Sales Interest expense General overhead. Income tax Rails Division $ 47,200 27,200 108,000 The income from operations for the Rails Division is O $21,150 Ob. $33,600 O $8,700 O d. $60,800 $30,720 20,040 78,000 Corporate Total $2,040 18,160 4,700
Grandy productions reported the following items for the current year sales 15,250,000; cost of goods 8750,000; depreciation expense 335,000; taxes925,000 administrative expenses; 275,000 interest, expenses; 97,500 and marketing expenses 385,000. What is grandes operating income?
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