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The incomplete income statement of Swifty Corp. follows. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income (a) $921,000 ? $10,030,000 6,900,000 3,130,000 The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Swifty follows ASPE, the income tax rate is 50%, and the bonus is tax-deductible. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income ? ? ? Complete the condensed income statement of Swifty for the year ended December 31, 2023. You will need to develop two simultaneous equations to solve for the bonus amount: one for the bonus and one for the tax (Round answers to 0 decimal places, e.g. 5,275.) SWIFTY CORP. Income Statement $921,000 : $10,030,00 6,900,000 3,130,000

The incomplete income statement of Swifty Corp. follows. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income (a) $921,000 ? $10,030,000 6,900,000 3,130,000 The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Swifty follows ASPE, the income tax rate is 50%, and the bonus is tax-deductible. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income ? ? ? Complete the condensed income statement of Swifty for the year ended December 31, 2023. You will need to develop two simultaneous equations to solve for the bonus amount: one for the bonus and one for the tax (Round answers to 0 decimal places, e.g. 5,275.) SWIFTY CORP. Income Statement $921,000 : $10,030,00 6,900,000 3,130,000

FINANCIAL ACCOUNTING
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 incomplete income statement of Swifty Corp. follows. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income (a) The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Swifty follows ASPE, the income tax rate is 50%, and the bonus is tax-deductible. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Complete the condensed income statement of Swifty for the year ended December 31, 2023. You will need to develop two simultaneous equations to solve for the bonus amount: one for the bonus and one for the tax. (Round answers to 0 decimal places, e.g. 5,275.) Net income $921,000 ? eTextbook and Media $10,030,000 6,900,000 3,130,000 List of Accounts ? ? ? $? SWIFTY CORP. Income Statement $921,000 $ $10,030,00 6,900,000 3,130,00
Transcribed Image Text:The incomplete income statement of Swifty Corp. follows. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Net income (a) The employee profit-sharing plan requires that 10% of all profits remaining after the deduction of the bonus and income tax be distributed to the employees by the first day of the fourth month following each year end. Swifty follows ASPE, the income tax rate is 50%, and the bonus is tax-deductible. Sales revenue Cost of goods sold Gross profit Administrative and selling expenses Profit-sharing bonus to employees Income before income taxes Income taxes Complete the condensed income statement of Swifty for the year ended December 31, 2023. You will need to develop two simultaneous equations to solve for the bonus amount: one for the bonus and one for the tax. (Round answers to 0 decimal places, e.g. 5,275.) Net income $921,000 ? eTextbook and Media $10,030,000 6,900,000 3,130,000 List of Accounts ? ? ? $? SWIFTY CORP. Income Statement $921,000 $ $10,030,00 6,900,000 3,130,00
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