The net income to total revenue ratio. Introduction: Autodesk Incorporation: It is a global software and services company. This company offers AutoCAD, a professional designing software tool. Net income: Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share. Revenue: It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

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Answer 1

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

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Brightwoodę Furniture provides the following financial data for a given enod: Sales Aount ($) Per Unit ($) 150,000 13 Less Variable E - L96,000 13 Contribwaon Margin c 1C Less Fixed Expenses $5,000 et Income 125,000 a. What is the company's CM ratio? b. If quarterly sales increase by $5,200 and there is no change in fixed expenses, by how much would you expect quarterly net operating income to increase?

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Footfall Manufacturing Ltd. reports information at the end of the current year: Net Sales $100,000 Debtor's turnover ratio (based on 2 net sales) Inventory turnover ratio 1.25 Fixed assets turnover ratio 0.8 Debt to assets ratio 0.6 Net profit margin 5% Gross profit margin 25% Return on investment 2% the following financial Use the given information to fill out the templates for income statement and balance sheet given below: Income Statement of Footfall Manufacturing Ltd. for the year ending December 31, 20XX (in $) Sales 100,000 Cost of goods sold Gross profit Other expenses Earnings before Lax Tax @50% Earnings tax after

Answer 2

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

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Answer 3

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

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Answer 4

Question

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

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Answer 5

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 6

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 7

Chapter 18, Problem 3WE

a.

Summary Introduction

To calculate: The net income to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Net income:

Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 8

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 9

b.

Summary Introduction

To calculate: The cost of revenue to total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Cost of revenue:

The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 10

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 11

c.

Summary Introduction

To calculate: The selling, general, and administrative expenses to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Selling, general, and administrative (SGA) expense:

The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 12

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 13

d.

Summary Introduction

To calculate: The income tax expense to the total revenue ratio.

Introduction:

Autodesk Incorporation:

It is a global software and services company. This company offers AutoCAD, a professional designing software tool.

Income tax expense:

Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.

Revenue:

It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

Answer 14

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Answer 15

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Answer 17

Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - Prob. 3DQ Ch. 18 - Prob. 4DQ Ch. 18 - Prob. 5DQ Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ

Solution Summary: The author explains the calculation of the net income to total revenue ratio.

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Chapter 18 Solutions