BUAD 305 hw1 - Income Statement Net Sales $4,324 Less cost...

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BUAD 305 Homework 1 E2-11 1. Full disclosure principle: F 2. Going concern assumption : A 3. Monetary unit assumption : C 4. Time period assumption : D 5. Cost principle : E 6. Economic entity assumption : B P2-3A part (b) only Maxim Enterprises Balance Sheet 30-Apr-07 Assets Current assets   Cash $770    Short term investment 1200   Account receivable 810   Inventories 967   Prepaid expenses 12     Total Current assets $3,759  Property, plant, and equipment   Land $1,600    Building 1537   Equipment 1220 4357 $8,116  Liabilities and stockholders' Equity Current liabilities   Account Payable $834    Current portion of debt 450     Total current liabilities $1,284  Long - term liabilities   Long - term debt 3500      Total liabilities $4,784  Stock holders' eauity   Common stock $900    Retained earnings ($1600 + 800) 2400     Total stockholders' eauity $3,300  Total liabilities and stockholders' Equity $8,084 
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 E5 -9 a The Clorox Company
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Unformatted text preview: Income Statement Jone 30, 2004 Net Sales $4,324 Less cost of goods sold 2387 Gross profit $1,937 Operation exp Selling and adminstrative exp $552 Advertising exp 429 Research and devolopment exp 84 Total operation exp $1,065 Income from Operation $872 Other revenues and gain other income 1 Other exp and loses Interest expense ($30) Income before income taxes $843 Income tax exp ($294) Net Income $549 E5 -9 b Gross profit rate: Gross profit/ Net Sales = 44.80% Profit margin rate: Net Income/ Net Sales = 12.70% E 13 - 1 Pretiss Company Income Statement For the Year Ended December 31, 2007 Income before income taxes $270,000 Less extraordinary fire loss ($50,000) Add Gain from disposal of adivision 40000 Net income before tax $260,000 Income tax exp ($260000 * .3) $78,000 Net Income $182,000...
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