Use the information provided below to prepare the pro forma statement of comprehensive income for the year ended 31 December 2023. (Note the statement must reflect the gross profit,operating profit, profit before tax and profit after tax INFORMATIONThe following figures have been extracted from the Statement of Comprehensive Income of Riptide Limitedfor the year ended 31 December 2022:SalesCost of salesOperating expensesInterest expenseCompany taxProfit after taxR2 000 0001 200 000500 00040 00078 000182 000Additional informationThe sales forecast for the year ended 31 December 2023 is R2 400 000.The gross margin ratio for 2023 is expected to increase to 55%.Riptide Limited has identified operating expenses and interest expense as varying in proportion tosales.Company tax is calculated at 27% of the profit before tax.1.2.3.

Statement of comprehensive income is one of the financial statement of business. This shows all…

Use the information provided below to prepare the pro forma statement of comprehensive income for the year ended 31 December 2023. (Note the statement must reflect the gross profit,operating profit, profit before tax and profit after tax

Use the information provided below to prepare the pro forma statement of comprehensive income for the year ended 31 December 2023. (Note the statement must reflect the gross profit,operating profit, profit before tax and profit after tax

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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Using the tax rate schedule given here LOADING..., perform the following: a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $ 15 000; $ 60 000; $ 90 000; $ 150 000; $ 250 000; $ 450 000; and $1 million. b. Plot the marginal tax rates (measured on the y-axis) against the pretax income levels (measured on the x-axis) $0 to $9,875 $0 (10% amount over $0) 9,876 to 40, 125 988 + (12% amount over 9, 876) 40, 126 to 85, 525 4,618 + (22% amount over 40, 126) 85,526 to 163, 300 14, 606 + (24% amount over 85, 526) 163, 301 to 207, 350 33, 272 + (32% amount over 163, 301) 207, 351 to 518, 400 47,368 (35% amount over 207, 351) 518,401 to Unlimited 156, 235 (37% amount over 518, 401)
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The before-tax income for Kingbird Co. for 2025 was $107,000 and $77,200 for 2026. However, the accountant noted that the following errors had been made: 1. 2 3. 4. Sales for 2025 included amounts of $41,300 which had been received in cash during 2025, but for which the related products were delivered in 2026. Title did not pass to the purchaser until 2026. The inventory on December 31, 2025, was understated by $9,000. The bookkeeper in recording interest expense for both 2025 and 2026 on bonds payable made the following entry on an annual basis. Interest Expense 14,400 Cash 14,400 The bonds have a face value of $240,000 and pay a stated interest rate of 6%. They were issued at a discount of $16,000 on January 1, 2025, to yield an effective-interest rate of 7%. (Assume that the effective-interest method should be used.) Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2025 and 2026. Repairs in the amount of $8,600 in 2025 and $9,000 in 2026…
Current Attempt in Progress For the year ended December 31, 2023, Coronado Ltd. reported income before income taxes of $96,000. In 2023, Coronado Ltd. paid $45,000 for rent; of this amount, $15,000 was expensed in 2023. The remaining $30,000 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $45,000 was deductible for tax purposes in 2023. The company paid $72,000 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Coronado Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses for 2023 were $40,000, of which $29,000 was actual repairs for 2023 and the remaining $11,000 was estimated repairs to be completed in 2024. Meal and entertainment expenses totalled $24,000 in 2023, only half of which were deductible for income tax purposes. Depreciation expense for 2023 was $250,000. Capital Cost Allowance (CCA) claimed for the year was $273,000.…
The following information has been obtained for Sheridan Corporation. 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,634,000 in 2020 and $1,359,000 in 2021. On January 1, 2020, equipment costing $1,260,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) 3. 4. Interest of $57,000 was earned on tax-exempt municipal obligations in 2021. 5. Included in 2021 pretax financial income is a gain on discontinued operations of $195,000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years.
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Joseph Bright lists the following transactions for the period ended 30 September 2017. Classify EACH item as follows: i. Write either capital or revenue in the expenditure type column to indicate the type of expenditure involved or EACH item. ii. Insert a-check mark (√) in the appropriate column to indicate whether the item is reported-in the Statement of profit or loss or in the Statement of financial position. The first one is done as an example. Description CLASSIFICATION OF EXPENDITURE Expenditure Type Statement where item should be reported Statement of Profit Statement of Example Wages of the computer operators 1 Cost of customizing software for use in business 2 Installing thief detection equipment 3 Cost of paper used for printing receipts during the year 4 Cost of toner used by the computer printer 5 Cost of adding extra memory to the compute or loss Revenue financial position
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