The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts in thousands ofdollars):Sales revenueCost of salesGross profitOperating expensesPretax earningsIncome tax expense (30%)Net earningsSales revenueCost of salesGross profit202320222024$3,325 $3,750 $4,0002,1552,277 2,4321,1701,4731,568620643668550830900165249270$ 385 $ 581 $ 630Operating expensesPretax earningsIncome tax expenseNet earningsAn audit revealed that in determining these amounts, the ending inventory for 2022 was understated by $48.Required:1. Revise these statements of earnings to reflect the correct amounts. (Do not round intermediate calculations. Round the finalanswers to the nearest dollar amount.)PRUITT COMPANYCorrected Statement of Earnings202420232021$4,2752,7631,5122022672840252$ 5882021

Corrected Statement of Earnings 2024 2023 2022 2021 Sales revenue 33253750$4,000 $4,275 Cost of…

Answered: The statements of earnings for Pruitt…

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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CASE4: Sally Manufacturing company had sales totaling $40,000,000 in fiscal year 2020. Some ratios for the company are listed below. Use this information to determine the $ value of various income statement and balance sheet accounts as required. Sally Manufacturing Company Year ended December 31, 2020 Gross profit margin 80% Operating profit margin 35% Net profit margin 8% Return on assets 16% Return on equity 20% Total asset turnover 2 Average collection period 62.2 days Calculate values and discuss for the following: Gross profits Cost of goods sold Operating profits Earnings available for common stockholders Total assets Account receivable
The 2023 annual report for Pronghorn Industries Inc. contained the following information: Dec. 31, 2022 Dec. 31, 2023 Total assets 561,000 605,000Total liabilities 65,400 88,900Net revenue 410,000 530,000Net income 54,000 32,000 Calculate the rate of return on assets using profit margin for 2023
The following items were taken from the financial statements of Kramer Manufacturing, Inc., over a 3-year period: Item 2021 2020 2019 Net sales $226,000 $212,000 $200,000 Cost of goods sold 150,000 140,000 125,000 Gross profit $ 76,000 $ 72,000 $ 75,000 Instructions Using horizontal analysis and 2019 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Item 2021 2020 2019 Net sales % % 100% Cost of goods sold % % 100% Gross profit % % 100% Explain whether the trends are favorable or unfavorable for each…
Concord, Inc. has the following Income Statement (in millions): CONCORD, INC. Income Statement For the Year Ended December 31, 2026 Net Sales $145 Cost of Goods Sold 87 Gross Profit Operating Expenses Net Income 58 O 66.7% 40.0% 100.0% 60.0% 39 $19 Using vertical analysis, what percentage is assigned to gross profit?
Tax return preparers should be aware of which of the following? A) Taxpayers who have more than one Form W-2 B) Taxpayers without a state driver's license C) Taxpayers with more than two dependents D) Taxpayers with a non-standard or altered Form W-2
The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts in thousands of dollars): 2024 Sales revenue 2023 $2,825 $3,250 1,905 2,027 Cost of sales Gross profit 920 M. T 1,223 Operating expenses 570 593 Pretax earnings 350 Income tax expense (40%) 630 252 140 Net earnings $ 210 $ 378 $ 420 Sales revenue Cost of sales Gross profit Operating expenses Pretax earnings Income tax expense Net earnings 2022 $3,500 2,182 1,318 618 700 280 An audit revealed that in determining these amounts, the ending inventory for 2022 was understated by $38. Paun-ship and ug 2024 Required: 1. Revise these statements of earnings to reflect the correct amounts. (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) "anne om d PRUITT COMPANY Corrected Statement of Earnings 2023 2021 $3,775 2,513 1,262 622 640 256 384 2022 $
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $2,240,000 $2,000,000 Cost of goods sold (1,925,000) (1,750,000) Gross profit $315,000 $250,000 Selling expenses $(152,500) $(125,000) Administrative expenses (118,000) (100,000) Total operating expenses $(270,500) $(225,000) Income before income tax expense $44,500 $25,000 Income tax expense (17,800) (10,000) Net income $26,700 $15,000 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.
Prepare a horizontal analysis of the following comparative income statement for the Buff Bodies Corporation. Round percentage changes to the nearest one-hundredth percent. Buff Bodies Corporation Comparative Income Statement for the Years Ended December 31, 2020 and 2019 2020 2019 Total revenue $1,450,000 $1,300,000 Expenses: Cost of goods sold $ 1,023,000 $ 930,000 Operating expenses 310,000 275,000 Interest expense 12,000 10,000 Income tax expense 48,300 38,000 Total expenses $1,393,300 $1,253,000 Net income $ 56,700 $ 47,000
Lancer Company's preliminary income statement for 2021 and its reported income statement for 2020 are given below. 2021 2020 1,350,000 (648,0001 702,000 (172,500) (162.000 367.500 Sales Revenues 1,320,000 (630.000 690,000 Cost of Goods Sold Gross Profit Depreciation Other Expenses (172,500) (153.000 364.500 Net Income Lancer's records reveal the following information: (1) Lancer neglected to record S8,000 of supplies expense at the end of 2020, so the supplies inventory was overstated at the end of 2020. Consequently, the supplies expense computed for 2021 included the additional amount of supplies used in 2020. (2) On 1/1/19, Lancer purchased a machine for $120,000. Although the machine was expected to have an eight-year life, it was erroneously expensed in recording the purchase. The appropriate depreciation method for this machine is double-declining-balance with no residual. (3) At the end of 2021, Lancer decided to change its inventory costing method from the FIFO costing method…
A company reported the following data for the year ending 2018: Description Amount Sales $400,000 Sales discount $16,000 Sales returns and allowances $13,000 Cost of goods sold $117,000 Operating expense $153,000 Income tax expense $23,750 There are 25,000 shares outstanding throughout the year. What is the earnings per share? $2.08 per share $4.04 per share $3.09 per share $3.01 per share
Splish Brothers Inc. has the following income statement (in millions): SPLISH BROTHERS INC.Income StatementFor the Year Ended December 31, 2023 Net Sales $250 Cost of Goods Sold 175 Gross Profit 75 Operating Expenses 50 Net Income $ 25 Using vertical analysis, what percentage is assigned to net income?
Presented below are the comparative income and retained eamings statements for Buffalo Inc. for the years 2020 and 2021. 2021 2020 Sales $314,000 $272,000 Cost of sales 200,000 147,000 Gross profit 114,000 125,000 Еxpenses 94,500 52,700 Net income $19,500 $72,300 Retained earnings (Jan. 1) $116,900 $70,700 Net income 19,500 72,300 Dividends (27,000 ) (26,100 ) Retained earnings (Dec. 31) $109,400 $116,900 The follawing additional information is provided: In 2021, Buffalo Inc. decided to switch its depreciation method from sum-of-the-years' digits to the straight-line method. The assets were purchased at the beginning of 2020 for $98,000 with an estimated useful life of 4 years and no salvage value. (The 2021 income statement contains depreciation expense of $29,400 on the assets purchased at the beginning of 2020.) 1. In 2021, the company discovered that the ending inventory for 2020 was overstated by $24,100; ending inventory for 2021 is correctly stated. 2. Prepare the revised…

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