Wiley Company's income statement for Year 2 follows: Sales $ 2,800 1,100 Cost of goods sold Gross margin 1,700 Selling and administrative expenses 400 Income before taxes Income taxes Net income The company's selling and administrative expense for Year 2 includes $74 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Current Assets Accounts receivable Inventory Prepaid expenses Current Liabilities Accounts payable Accrued liabilities Income taxes payable Year 2 $ 210 $ 166 $ 34 $ 114 $5 $ 118 1,300 520 $ 780 Year 1 $ 255 $ 198 $ 26 $85 $ 30 $ 70 Required: 1. Using the direct method, convert the company's income statement to a cash basis. 2. Assume that during Year 2 Wiley had a $13,000 gain on sale of investments and a $4,000 loss on the sale of equipment. Would these transactions affect the computation in (1) above?

Wiley Company's income statement for Year 2 follows: Sales $ 2,800 1,100 Cost of goods sold Gross margin 1,700 Selling and administrative expenses 400 Income before taxes Income taxes Net income The company's selling and administrative expense for Year 2 includes $74 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Current Assets Accounts receivable Inventory Prepaid expenses Current Liabilities Accounts payable Accrued liabilities Income taxes payable Year 2 $ 210 $ 166 $ 34 $ 114 $5 $ 118 1,300 520 $ 780 Year 1 $ 255 $ 198 $ 26 $85 $ 30 $ 70 Required: 1. Using the direct method, convert the company's income statement to a cash basis. 2. Assume that during Year 2 Wiley had a $13,000 gain on sale of investments and a $4,000 loss on the sale of equipment. Would these transactions affect the computation in (1) above?

Name: Wiley Company's income statement for Year 2 follows:$ 2,8001,1001,700
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Wiley Company's income statement for Year 2 follows:$ 2,8001,1001,7004001,300520$ 780SalesCost of goods soldGross marginSelling and administrative expensesIncome before taxesIncome taxesNet incomeThe company's selling and administrative expense for

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me with show all calculation thanku
The following information is available for Skysong Corp. for the year ended December 31, 2025. Other revenues and gains $21,600 Other expenses and losses 3,000 Cost of goods sold 281,000 Sales discounts 3,200 Sales revenue 746,000 Operating expenses 210,000 Sales returns and allowances 8,800 Prepare a multiple-step income statement for Skysong Corp. The company has a tax rate of 25%.
Compute for Net Profit Margin for Year 1: The Derkins Corporation had the following information available: Year 3 Year 2 Year 1 Income Statement Revenue Cost of goods sold Selling & admin. expenses Interest expense Net Income 30,848 23,122 6,082 504 1,140 27,433 20,938 5,053 458 984 25,512 19,875 4,672 350 615 Balance Sheet Assets Cash Accounts receivable Inventory Property and equip. (net) Total Assets 681 506 3,200 3,281 7,668 354 587 2,627 2,810 6,378 589 412 2,245 2,514 5,760 Liabilities Accounts payable Unredeemed gift cards Long-term liabilities 373 469 358 410 280 385 2,643 3,234 2,824 Stockholders' Equity Common stock Retained earnings Total Liabilities and Equity 985 985 985 2,607 7,668 1,801 6,378 1,467 5,760 Note: Use two Decimal Points and use Percent (%) if Necessary
The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains $23,800 Other expenses and losses 4,000 Cost of goods sold 292,000 Sales discounts 4,600 Sales revenue 760,000 Operating expenses 221,000 Sales returns and allowances 10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.
The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $444,100.00 2 Cost of merchandise sold 155,600.00 3 Gross profit $288,500.00 4 Operating expenses: 5 Depreciation expense $37,510.00 6 Other operating expenses 114,580.00 7 Total operating expenses 152,090.00 8 Income before income tax $136,410.00 9 Income tax expense 40,010.00 10 Net income $96,400.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $37,180 $31,240 Inventories 91,040 79,880 Prepaid expenses 14,990 15,950 Accounts payable (merchandise creditors) 68,570 63,000 Accrued expenses payable (operating expenses) 19,010 20,840 Income tax payable 3,470 3,470 Prepare the Cash Flows from Operating…
A company reports the following income statement and balance sheet information for the current year: Net income $132,370 Interest expense 11,510 Average total assets 2,180,000 Determine the return on total assets. Round the percentage to one decimal place.fill in the blank %
The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $450,000.00 2 Cost of merchandise sold 151,700.00 3 Gross profit $298,300.00 4 Operating expenses: 5 Depreciation expense $37,780.00 6 Other operating expenses 115,450.00 7 Total operating expenses 153,230.00 8 Income before income tax $145,070.00 9 Income tax expense 39,310.00 10 Net income $105,760.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $36,230 $31,850 Inventories 93,760 81,240 Prepaid expenses 14,670 15,660 Accounts payable (merchandise creditors) 67,950 63,470 Accrued expenses payable (operating expenses) 19,130 20,560 Income tax payable 4,390 4,390 Prepare the Cash Flows from Operating…
The following information is available for Entity B for the year ended December 31, 2024. What is net income? 670,000 35,000 15,400 372,000 70,000 Sales Sales Returns and Allowances Sales Discounts Cost of Goods Sold Selling and Admin Expense Income Tax Expense Interest Expense Interest Revenue $619,600 $167,400 $150,660 $247,600 16,740 14,700 4,500
At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 31,880 88,776 116, 174 9,763 283, 158 $ 529,751 $ 127,951 100,589 162,500 138,711 $529,751 For both the current year and one year ago, compute the following ratios: $ 420,092 213,490 11,707 8,953 Current Year 1 Year Ago The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: $ 688,676 $36,900 63,296 86,176 9,686 260,624 $ 456,682 654,242 $34,434 $ 2.12 2 Years Ago $36,930 50,235 $ 75,636 105, 037 163,500 $ 49,240 81,607 162,500 83,453 112,509 $ 456,682 $ 376,800 54, 576 4,186 230,873 $…
The following percentages apply to Rooney Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ROONEY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years. Year 4 100.0 % 61.1 38.9 26.2 2.4 Year 4 28.6 10.3 5.3 5.0 % Year 3 100.0 % 64.1 35.9 20.5 1.9 22.4 13.5 7.0 6.5 % Year 3
Selected income statement data follow for Harper, Inc., for the year ended December 31 (in thousands). What is the company's times interest earned ratio? Operating income before interest Interest expense Operating income after interest Income tax Income after tax 35.6 30.6 11.2 24.4 6,617 189 6.428 1,607 4,821
How many days is the average collection period ahd what is the current ratio?