acc240 hw net income - $24,988,938 $29,860,231 Total...

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$900,000 10% Sales (units) 25,000 27,500 30,250 10% Selling Price $1,000 $1,100 $1,210 Company One Company Two Income Statement Year 1 Year 2 Year 3 Income Statement Year 1 Year 2 Year 3 Sales $25,000,000 $30,250,000 $36,602,500 Sales $25,000,000 $30,250,000 $36,602,500 Service Contracts 937,500 1,968,750 3,103,125 Service Contracts 1,500,000 2,400,000 3,390,000 Total Revenues $25,937,500 $32,218,750 $39,705,625 Total Revenues $26,500,000 $32,650,000 $39,992,500 LIFO Cost of Goods Sold $17,500,000 $21,175,000 $25,621,750 FIFO Cost of Goods Sold $17,500,000 $21,035,000 $25,467,750 2,000,000 2,080,000 2,163,200 2,000,000 2,080,000 2,163,200 10 Depreciation 90,000 90,000 90,000 15 Depreciation 60,000 60,000 60,000 5% Bad Debts 1,296,875 1,610,937.50 1,985,281.25 4% Bad Debts 1,060,000 1,306,000 1,599,700 Total Expenses $20,886,875
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Unformatted text preview: $24,988,938 $29,860,231 Total Expenses $20,620,000 $24,481,000 $29,290,650 Net Income $5,050,625 $7,229,812 $9,845,394 Net Income $5,880,000 $8,169,000 $10,701,850 Service Contracts Revenue Recognized Service Contracts Revenue Recognized Yr $ Contracts Signed Year 1 Year 2 Year 3 Yr $ Contracts Signed Year 1 Year 2 Year 3 1 3,750,000 $937,500 $937,500 $937,500 1 3,750,000 $1,500,000 $750,000 $750,000 2 4,125,000 1,031,250 1,031,250 2 4,125,000 1,650,000 825,000 3 4,537,500 1,134,375 3 4,537,500 1,815,000 Total $937,500 $1,968,750 $3,103,125 Total $1,500,000 $2,400,000 $3,390,000 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Current "Cost" of Difference in Net Income Product (per unit) $700 $770 $847 Between Two Companies $829,375 $939,188 $856,456...
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This note was uploaded on 04/07/2008 for the course ACC 240 taught by Professor Vawter during the Spring '08 term at Glendale Community College.

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