All categories

1 year ago

How do you do income statement

1 answer:

3 0

To prepare an income statement, you will need to generate a trial balance report, calculate your revenue, determine the cost of goods sold, calculate the gross margin, include operating expenses, calculate your income, include income taxes, calculate net income and lastly finalize your income statement with business details and the reporting period.

If you can't find the time to make one from scratch, there are templates that can be used to help.

gross margin : the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides.

net income : net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses.

You might be interested in

Torino Company has 2,800 shares of $50 par value, 6.5% cumulative and nonparticipating preferred stock and 28,000 shares of $10

Feliz [49]

Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

8 0

2 years ago

At the beginning of the month, the Forming Department of Martin Manufacturing had 26,000 units in inventory, 30% complete as to

miskamm [114]

Answer:

Materials - 100,400
Conversion - 95,600

Explanation:

Equivalent Units = Units Completed and Transferred out + Ending Work in Progress.

Materials Equivalent Units

Ending Work in Progress = 90% * 16,000

= 14,400 units

Equivalent Units = 86,000 + 14,400

= 100,400 units

Conversion Equivalent Units

Ending Work in Progress = 60% * 16,000

= 9,600 units

Equivalent Units = 86,000 + 9,600

= 95,600 units

4 0

2 years ago

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha

Veseljchak [2.6K]

Answer:

Proposal A: 5,455 units

Proposal B: 5,770 units

Explanation:

The break-even point is the number of units required for the revenue to equal the total costs.

For proposal A:

Fixed Costs = $60,000

Variable Costs = $13 / unit

Selling Price = $24 / unit

$(P-VC)*n-FC = 0\\(24-13)*n-60,000 = 0\\n=5,454.5\ units$

For proposal B:

Fixed Costs = $75,000

Variable Costs = $11 / unit

Selling Price = $24 / unit

$(P-VC)*n-FC = 0\\(24-11)*n-75,000 = 0\\n=5,769.2\ units$

Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.

3 0

2 years ago

A buyer purchased a new residence for $175,000. The buyer made a down payment of $15,000 and obtained a $160,000 mortgage loan.

Naily [24]

Answer:

Buydown, is the right answer.

Explanation:

This is a buydown mortgage arrangement because in the buydown financing technique the buyer tries to take lower interest rates in the initial year of the loan period. Moreover, some mortgage lenders provide buydown discounts or points as part of their promotion. Secondly, the builder pays the initial payment to the mortgage institution that results in the lower buyer’s payment.

3 0

2 years ago

In recent years some companies have begun to work closely with their customers and/or suppliers by sharing information to develo

notsponge [240]

Answer:

Collaborative Planning, Forecasting and Replenishment

Explanation:

Based on the information provided within the question it can be said that the procedure they are following is known as Collaborative Planning, Forecasting and Replenishment (CPFR). This is a concept whose main focus is enhancing supply chain integration by emphasizing joint practices. Which is what is being done in this situation as companies begin to work closely together with their customers and/or suppliers.

7 0

2 years ago

How do you do income statement​

How do you do income statement