The following information has been taken from the accounting records of Ahmed and Company in first and second period. Period Sales Profit 2018 $ 100,000 $15,000 2019 150,000 25,000 Calculate: 1) Profit volume ratio 2) Fixed cost for two periods 3) Break Even Point in dollars sales

The following information has been taken from the accounting records of Ahmed and Company in first and second period. Period Sales Profit 2018 $ 100,000 $15,000 2019 150,000 25,000 Calculate: 1) Profit volume ratio 2) Fixed cost for two periods 3) Break Even Point in dollars sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Presented below is selected information for Moore Company for the month of March, 2024. Cost of…

A: In order to compute and present net income, organisations use a multi-step income statement as part…

Q: A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's…

A: The different financial ratios used for the analysis of the company performance are divided…

Q: Refer to the following mentioned data. Net sales Cost of products sold Gross margin 2017 2016 2015…

A: Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…

Q: Summary operating data for Custom Wire & Tubing Company during the year ended April 30, 2018,…

A: Single-step income statement: This statement displays the total revenues as one line item from…

Q: Complete the balance sheet and sales information using the following financial data: Total assets…

A: Ratios:There are so many ratios used namely, short-term solvency ratios, long-term solvency ratios,…

Q: Income Statement and Accounts for Merchandiser For the fiscal year, sales were $6,580,000 and the…

A: a Compute the gross profit: Sales $6,580,000 Less: Cost of Goods sold $3,816,000 Gross…

Q: Complete the balance sheet and sales information using the following financial data: Total assets…

A: Total asset turnover ratio = Turnover / Total Assets Cost of goods sold = [Sales * ( 1…

Q: Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative…

A: Trend Percentage: Trend percentages perform comparisons to a selected base year or timeframe, much…

Q: ingle step income statement Summary operating data for custom wore and company during nthe year…

A: Given, Sales revenue = $746,400 Rent revenue = $117,600 In single-step income statement, sales…

Q: Targee Inc. has the following income statement (in mulons). Targee, INC. Income Statement For the…

A: The answer is as fallows

Q: Profitability Analysis Erin Enterprises reports the following information on its year-end income…

A: Gross profit percentage is calculated by dividing gross profit by net sales. Gross profit is the…

Q: reate a common-sized income statement given the following income statement data for the General…

A: In a common size income statement each line item is expressed as a percentage of revenue or sales.…

Q: Refer to the following mentioned data. Net sales Cost of products sold Gross margin 2017 2016 2015…

A: Gross Profit ratio :— It is calculated by dividing gross profit by sales. Gross profit = Net…

Q: tal assets turnover: 1x ays sales outstanding: 73.0 days ventory turnover ratio: 3.75x xed assets…

A: Financial ratios are calculated to determine the financial position of an entity. It is very…

Q: Fanning Company reported the following operating results for two consecutive years: Required Compute…

A: Please comment down for any doubt. I hope my answer helps you.

Q: alance Sheet Analysis Complete the balance sheet and sales information in the table that follows…

A: This question is to be solved using ratio analysisp

Q: multiple-step income statement.

A: Multi-Step Income statement - Under multi-step income statement all expenses and income are dividend…

Q: Complete the balance sheet and sales information in the table that follows for J. White Industries…

A: Note 1: Total liabilities-to-assets ratio: 45% Total liabilities/Total assets= 45% Total…

Q: ill in thr blanks on the table below and show the formulas used for each value Dayton, Inc.…

A: Under common size analysis of income statement, all items of income statement except tax expense are…

Q: The following information has been taken from the accounting records of Ahmed and Company in…

A: Calculation of P/V (Profit Volume Ratio) : Calculation of sales required in order to earn a…

Q: Adams Company reported the following operating results for two consecutive years: Required Compute…

A: Vertical analysis is the financial statement analysis wherein one line is taken as base and all the…

Q: Alex Enterprises reports the following information on its year-end income statement: Net sales…

A: Solution:- Calculation of Gross profit margin and Net profit margin as follows under:-

Q: BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following…

A: Ratio analysis is a valuable management technique that may help you better comprehend financial…

Q: Consider the following income statement data from the Ross Company: Current Year Prior Year $962,500…

A: Comparative financial statement means where the difference is taken between the figure of two years…

Q: Assume Martinez Company has the following reported amounts: Sales revenue $ 610,000, Sales returns…

A: a. Net sales = sales revenue - sales return and allowance = $610000 - 30000 = $580,000

Q: -xpenses. Cost of goods sold Selling expenses Administrative expenses Variable $653,600 81,700…

A: The contribution margin is the difference between the sales and the variable expense and hence it…

Q: Assume Carla Vista Company has the following reported amounts: Sales revenue $1,489,000, Sales…

A: Gross profit rate is calculated by dividing gross profit by net sales. Gross profit is the…

Q: Hoyt Company provides this information for the month of November, 2022: sales on credit $170,000;…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: What is the gross margin percentage

A: Gross margin is the net gain an entity recieved on selling goods without considering expense that is…

Q: Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative…

A: Comparative financial statements are statements that are prepared for more than a year and the first…

Q: Sunland Company reported the following in its 2022 and 2021 income statements. Net sales Cost of…

A: Gross profit rate measures the portion of sales revenue retained after accounting for the cost of…

Q: A company reports the following amounts at the end of the year: Sales revenue Cost of goods sold Net…

A: Sales revenue$310,000Less: Cost of goods sold210,000Gross profit$100,000

Q: Complete the balance sheet and sales information using the following financial data: Total assets…

A: Explanation Step 1: Calculate Sales and Cost of Goods Sold (COGS)- Sales were calculated using the…

Q: Current Attempt in Progress Assume Sunland Company has the following reported amounts: Sales revenue…

A: Net sales are the difference between gross sales and sales return and allowances. The gross profit…

Q: Presented below is selected information for Bramble Company for the month of March 2022. Cost of…

A: Multi-step income statements are prepared by dividing the income and expenses into different…

Q: Cullumber Inc. had sales of $2,816,000 for the first quarter of 2022. In making the sales, the…

A: For CVP income statement, the contribution margin is calculated as the difference between sales and…

Q: The following items were taken from the financial statements of Kramer Manufacturing, Inc., over a…

Q: Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income…

A: Formula: Percentage assigned to operating expenses = ( Operating expenses / Net sales ) x 100

Q: Manero Company included the following information in its annual report: 2018 2017 Sales Cost of…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Blossom Inc. had sales of $2,300,000 for the first quarter of 2020. In making the sales, the company…

A: CVP analysis is known as a decision-making tool that helps management to make strategies and take…

Q: a. Prepare a comparative income statement with horizontal analysis, indicating the increase…

A: In this question, we need to prepare the horizontal analysis of income statement Winthrop Company…

Question

The following information has been taken from the accounting records of

Ahmed and Company in first and second period.

Period	Sales	Profit
2018	$ 100,000	$15,000
2019	150,000	25,000

Calculate:

1) Profit volume ratio

2) Fixed cost for two periods

3) Break Even Point in dollars sales

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Compute the Profit Volume Ratio:

VIEW

Compute the fixed assets:

VIEW

Compute the Break-even point in dollars:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In its income statement for the year ended December 31, 2022, Pharoah Company reported the following condensed data. Operating expenses Cost of goods sold Interest expense (a) (b) Prepare a single-step income statement. Revenues $776,000 1,236,000 72,000 Net Sales Interest revenue Loss on disposal of plant assets Net sales Pharoah Company Income Statement For the Year Ended December 31, 2022 69 $ 29,000 17,000 2,218,000 KNUT
Q3) A. The following information has been taken from the accounting records of Ahmed and Company in first and second period. Period Sales Profit 2019 $ 100,000 $15,000 2020 150,000 25,000 Calculate: 1) Profit volume ratio 2) Fixed cost for two periods 3) Variable cost of two periods.
The gross profit margin excludes all costs except the cost of goods sold. If Miller Company recorded Net Sales of $17,260 for the month of March 2021, and cost of goods sold of $11,042, what is the company’s gross profit margin for the month of March. 37.4% 36% 39.2% 38.6%
Window World Company's income statement for the year ending December 31, 2024 included the following items: Interest revenue $65,500 Salaries expense 85,000 Cost of goods sold 217,600 The following balances have been excerpted from the company's comparative balance sheets: 31-Dec-24 31-Dec-23 Interest receivable $9,100 $7,500 Salaries payable 8,900 4,200 Accounts payable 12,700 10,900 Inventory 36,100 32,500 The amount of cash paid by the company to suppliers in 2024 was Select one: $215,800. $212,200. $219,400. $248,290.
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company. Atlanta* $ 32,400 (15,500) 16,900 Boston* $ 87,500 (64,030) 23,470 Net sales Cost of goods sold Gross margin Less: Operating expenses Selling and administrative expenses Net income *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. a-2. Ascertain which of the companies is a high-end retailer based on ratios computed. b. If Atlanta and Boston have equity of $17,800 and $20,200, respectively, which company is in the more profitable business? Complete this question by entering your answers in the tabs below. Req A1 Req A2 (12,740) (19,026) $ 4,160 $ 4,444 Req B Gross margin percentages Return-on-sales ratios Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston. (Round your answers to the nearest whole number.) Atlanta % % Boston
Comparative Income Statements Consider the following income statement data from the Mono Company: Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense 2019 2018 $600,000 $450,000 336,000 279,000 105,000 99,000 60,000 50,000 4,000 3,000 Prepare a contparative income statement, showing increases, and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). Sales Revenue Cost of Goods Sold MONO COMPANY Comparative Income Statements ♦ Selling Expenses Administrative Expenses Total Income before Income Taxes ◆ → $ $ 2019 0 $ 0 0 0 0 oooo 0 0 $ 2018 Increase (Decrease) 0 $ 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 Percent Change 0% 0% 0% 0% 0% 0% 0% 0% 0 %
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 470,015 Income before taxes $3,670,035 Income taxes 1,461,214 Net income $2,208,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.times
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 463,015 Income before taxes $3,677,035 Income taxes 1,461,214 Net income $2,215,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.fill in the blank 1
Determining Gross Profit During the current year, merchandise is sold for $45,870,000. The cost of the merchandise sold is $33,026,400. a. What is the amount of the gross profit? 12,843,600 b. Compute the gross profit percentage (gross profit divided by sales). % c. When will the income statement necessarily report a net income?
The following information was taken from the financial statements of Sunland Company: 2021 2020 Gross profit on sales $678,600 $760,000 Income before income taxes 205,400 225,000 Net income 260,000 225,000 Net income as a percentage of net sales 10% 9% Please show steps to finding answer Compute the cost of goods sold in dollars and as a percentage of net sales for each year. (Round percentages to 1 decimal place, e.g. 15.2%) 2021 2020 Cost of goods sold in dollars $enter a dollar amount $enter a dollar amount Cost of goods sold as a percentage of net sales nter percentages rounded to 1 decimal place % nter percentages rounded to 1 decimal place %
Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $80,000). Inventory turnover is 4 (average inventory is $5,000). Accounts receivable turnover is 7 (average accounts receivable is $6,000). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 7,100 Income tax expense 2,100 Net Income
Bramble Corp. reported the following in its 2025 and 2024 income statements. Net sales Cost of goods sold Operating expenses Income tax expense Net income Gross profit rate 2025 $154,000 86,240 27,720 21,560 $18,480 (a1) Determine the company's gross profit rate and profit margin for both years. (Round answers to 1 decimal place, eg. 52.7%) Profit margin 2024 $124,000 69,440 16,120 13,640 $24,800 2025 2024 %