The following income statement was drawn from the records of Evergreen Retailers: Sales revenue (8,200 units x $125) $1,025,000 Cost of goods sold (8,200 units > $72) ($590,400) Gross margin $434,600 Sales commissions (4% of sales) ($41,000) Administrative salaries expense ($118,000) Marketing expense ($57,600) Depreciation expense ($63,500) Delivery expenses (8,200 units $4) ($32,800) Net income $121,700 Reconstruct the income statement using the contribution margin format.

The following income statement was drawn from the records of Evergreen Retailers: Sales revenue (8,200 units x $125) $1,025,000 Cost of goods sold (8,200 units > $72) ($590,400) Gross margin $434,600 Sales commissions (4% of sales) ($41,000) Administrative salaries expense ($118,000) Marketing expense ($57,600) Depreciation expense ($63,500) Delivery expenses (8,200 units $4) ($32,800) Net income $121,700 Reconstruct the income statement using the contribution margin format.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
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.
Calculate income from operations for Jonas Company based on the following data: Sales $764,000 Selling expenses 52,500 Cost of goods sold 538,000 Oa, $711.500 Ob. $173,500 Oc. $485,500 Od. $226,000 ( Previous Next
Assume Martinez Company has the following reported amounts: Sales revenue $ 610,000, Sales returns and allowances $ 30,000, Cost of goods sold $ 396,500, and Operating expenses $ 84,000. (a) Compute net sales. Net sales (b) Compute gross profit. Gross profit (c) Compute income from operations. Income from operations (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %24
Compute operating income for Jonas Company based on the following data: Line Item Description Amount Sales $764,000 Operating expenses 52, 500 Cost of goods sold 538,000
can you please give answer
The following income statement was drawn from the records of Walton Company, a merchandising firm: WALTON COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $168) Cost of goods sold (5,500 units * $89) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,500 units x $2) Net income Req A $924,000 (489,500) 434,500 (46,200) (80,000) (31,000) Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of operating leverage. c. Use the measure of operating leverage to determine the amount of net income Walton will earn if sales increase by 10 percent. Complete this question by entering your answers in the tabs below. Less: Variable costs (44,000) (11,000) $222,300 Req B and C Reconstruct the income statement using the contribution margin format. WALTON COMPANY Income Statement For the Year Ended…
Assume Cooper Company has the following reported amounts: Sales revenue $7,533 Sales returns and allowances $579 Cost of goods sold $1,501 Operating expenses $1,237 Compute Income from Operations.
Pollux Company had the following income statement for last year Sales-$360,000 Less: Cost of goods sold-$195,000 Gross margin-$165,000 Less: Selling & administration expense-$78,600 Operating income- $86,400 Beginning assets were $565,000 and ending assets were $597, 000. Carry computations out to three decimals places A. What are average operating assets? B. what is margin? C. what is turnover? D. What is ROI?
Kelvin enterprises has the following reported amounts
The company's gross margin percentage is