Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss. Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows: Gross Profit Rate = Gross Profit Net Sales × 100 Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax. Operating Income = Gross Profit − Operating Expenses To determine: On basis of financial statements of 2013 of each company Gross profit

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Answer 1

Question

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

(3)

To determine

Operating income

(4)

To determine

Percentage change in operating income from 2012 and 2013.

(b)

To determine

Comparison of profitability of both companies.

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PLEASE HELP! NOTICE. THERE ARE FIVE CELLS ON THE LEFT SIDE TO FILL. THE DROPDOWN SHOWS THE OPTIONS FOR THESE CELLS.

Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

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Answer 2

Question

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

(3)

To determine

Operating income

(4)

To determine

Percentage change in operating income from 2012 and 2013.

(b)

To determine

Comparison of profitability of both companies.

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Answer 3

Question

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

(3)

To determine

Operating income

(4)

To determine

Percentage change in operating income from 2012 and 2013.

(b)

To determine

Comparison of profitability of both companies.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

(3)

To determine

Operating income

(4)

To determine

Percentage change in operating income from 2012 and 2013.

(b)

To determine

Comparison of profitability of both companies.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

(3)

To determine

Operating income

(4)

To determine

Percentage change in operating income from 2012 and 2013.

(b)

To determine

Comparison of profitability of both companies.

Answer 6

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

Answer 7

Chapter 5, Problem 5.3BYP

(a)

(1)

To determine

Income Statement: Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Gross Profit Rate: Gross Profit Rate is the ratio that determines the profitability of business as percentage of its net sales. Gross profit ratio shall be calculated as follows:

Gross Profit Rate=Gross ProfitNet Sales×100

Operating Income: Operating Income is the income arising after deducting the operating expenses but before the interest and tax.

Operating Income=Gross Profit−Operating Expenses

To determine: On basis of financial statements of 2013 of each company Gross profit

Answer 8

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

Answer 9

(2)

To determine

On basis of financial statements of 2013 of each company gross profit rate,

Answer 10

(3)

To determine

Operating income

Answer 11

(3)

To determine

Operating income

Answer 12

(4)

To determine

Percentage change in operating income from 2012 and 2013.

Answer 13

(4)

To determine

Percentage change in operating income from 2012 and 2013.

Answer 14

(b)

To determine

Comparison of profitability of both companies.

Answer 15

(b)

To determine

Comparison of profitability of both companies.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - 5. When is cost of goods sold determined in a...Ch. 5 - Prob. 6Q Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

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On basis of financial statements of 2013 of each company gross profit rate,

Operating income

Percentage change in operating income from 2012 and 2013.

Comparison of profitability of both companies.

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