Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount $1,521,000 Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Sales Answer is complete but not entirely correct. Winter Leisure Traditional Income Statement Quarter ended December 31 S $ $ $ 400,000 $ 370,000 Required: 1. Prepare a traditional Income statement for the quarter ended December 31. $ 1,521,000 390 55 25 $ 99,000 $ 119,000 $ 371,000
Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount $1,521,000 Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Sales Answer is complete but not entirely correct. Winter Leisure Traditional Income Statement Quarter ended December 31 S $ $ $ 400,000 $ 370,000 Required: 1. Prepare a traditional Income statement for the quarter ended December 31. $ 1,521,000 390 55 25 $ 99,000 $ 119,000 $ 371,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
![Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31:
Total sales revenue
Selling price per snowboard
Variable selling expense per snowboard
Variable administrative expense per snowboard
Total fixed selling expense
Total fixed administrative expense
Merchandise inventory, beginning balance.
Merchandise inventory, ending balance
Merchandise purchases
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Operating income
Answer is complete but not entirely correct.
Administrative expenses
Winter Leisure
Traditional Income Statement
Quarter ended December 31
Required:
1. Prepare a traditional income statement for the quarter ended December 31.
Sales
Variable expenses:
Selling expenses
Administrative expenses
Cost of goods sold
Contribution margin
Fixed expenses:
Operating income
Selling expenses
Administrative expenses
>>
Winter Leisure
Contribution Format Income Statement
Quarter ended December 31
333
333
S
333
400,000
370,000 X
Answer is not complete.
$ 1,521,000
351,000
1,170,000
2. Prepare a contribution format Income statement for the quarter ended December 31.
$ 400,000
370,000
S
770,000
400,000
$ 1,521,000
S
$ 1,429,740
Amount
$1,521,000
0
$
$
$
S 770,000
S 400,000 X
$
$
$
390
55
25
400,000
370,000
99,000
$
119,000
$ 371,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2Ff2217bea-733d-4b79-a180-5c3977e3f693%2Fg53a7bf_processed.png&w=3840&q=75)
Transcribed Image Text:Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31:
Total sales revenue
Selling price per snowboard
Variable selling expense per snowboard
Variable administrative expense per snowboard
Total fixed selling expense
Total fixed administrative expense
Merchandise inventory, beginning balance.
Merchandise inventory, ending balance
Merchandise purchases
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling expenses
Operating income
Answer is complete but not entirely correct.
Administrative expenses
Winter Leisure
Traditional Income Statement
Quarter ended December 31
Required:
1. Prepare a traditional income statement for the quarter ended December 31.
Sales
Variable expenses:
Selling expenses
Administrative expenses
Cost of goods sold
Contribution margin
Fixed expenses:
Operating income
Selling expenses
Administrative expenses
>>
Winter Leisure
Contribution Format Income Statement
Quarter ended December 31
333
333
S
333
400,000
370,000 X
Answer is not complete.
$ 1,521,000
351,000
1,170,000
2. Prepare a contribution format Income statement for the quarter ended December 31.
$ 400,000
370,000
S
770,000
400,000
$ 1,521,000
S
$ 1,429,740
Amount
$1,521,000
0
$
$
$
S 770,000
S 400,000 X
$
$
$
390
55
25
400,000
370,000
99,000
$
119,000
$ 371,000
![3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round
intermediate calculations. Round your final answer to nearest whole dollar.)
Contribution
Answer is not complete.
per snowboard
4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses
will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole
dollar.)
Operating income
X Answer is not complete.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2Ff2217bea-733d-4b79-a180-5c3977e3f693%2F7cc8mo_processed.png&w=3840&q=75)
Transcribed Image Text:3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round
intermediate calculations. Round your final answer to nearest whole dollar.)
Contribution
Answer is not complete.
per snowboard
4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses
will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole
dollar.)
Operating income
X Answer is not complete.
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