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Unformatted text preview: P6-3Independent CasesIncome Statement ItemsCASE ACASE BCOMPUTATIONSGross Sales Revenue$232,000$160,000Sales Returns & Allowances18,00016,250160,000 x = 143,750Net Sales Revenue214,000143,75046,000 / 32%Cost of Goods Sold149,80097,750 (68%)net sales x = 46,000Gross Profit64,20046,000net sales - cogsOperating Expenses44,20018,50064,200 20,000Pretax Income20,00027,50022,000 / 80%Income Tax Expense (20%)4,0005,500pretax * 20%Net Income16,00022,000EPS * 10,000 sharesEPS (10,000 shares)$1.60$2.20net income / 10,000P6-4Bad Debt Expense (-SE)162Allowance for Doubtful Accts. (+A)162Allowance for Doubtful Accounts (+A)145Accounts Receivable (-A)145Allowance for Doubtful AccountsBalance at BeginningAdditions Charges to ExpenseWrite-OffsBalance at EndYEAR ONE61231569YEAR TWO69301958YEAR THREE5816214575P6-7Ending cash balance per books21,45Ending cash balance per bank statement18,530+ Interest paid by bank1,070+ Deposits in transit6,000- NSF checks / service charges190- Outstanding checks...
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- Spring '07