Chapter 3 Solutions.docx - Chapter 3 Selected Exercises EXERCISES E3-1 step 1 Case A Case B Case C Case D Case E Sales revenue $900 $700 $410 $ $ Cost

Chapter 3 Solutions.docx - Chapter 3 Selected Exercises...

This preview shows page 1 - 3 out of 4 pages.

Chapter 3 Selected Exercises EXERCISES E3-1 step 1 Case A Case B Case C Case D Case E Sales revenue $900 $700 $410 $____* $___* Cost of sales ___ * 380 ___ * 500 310 Gross profit 400 ___ * ____* ___* 440 Other operating expenses: Selling expense * 150 80 400 250 Administrative expense 150 __ * 60 100 80 _ __ * ___ * ___ * __ * * Earnings before income tax 200 90 * 190 * Income tax expense __ * 30 20 40 30 Net earnings $170 $ * $ 50 $ * $80 E3-1 step 2 Case A Case B Case C Case D Case E Sales revenue $900 $700 $410 $1,190* $750* Cost of sales 500 * 380 200 * 500 310 Gross profit 400 320 * 210 * 690 * 440 Other operating expenses: Selling expense 50* 150 80 400 250 Administrative expense 150 80 * 60 100 80 200 * 230 * 140 * 500 * 330 * Earnings before income tax 200 90 70* 190 110* Income tax expense 30 * 30 20 40 30 Net earnings $170 $ 60 * $ 50 $150 * $80 *Amounts not given in the exercise.
Image of page 1
E3-2 VILLAGE CORPORATION Statement of Earnings For the Year Ended, December 31, 2017 Computations in Order Sales revenue ........................................ Given $70,000 Cost of sales .......................................... (a) $70,000 – $24,500 45 ,500 Gross profit ............................................ Given 24 ,500 Operating expenses: Selling expense .................................... Given $ 8,000 Administrative expense ....................... (c) $14,500 – $8,000 6 ,500 Total operating expenses ...................... (b) $24,500 – $10,000 14 ,500 Earnings before interest and tax EBIT... Given 10,000 Interest expense .................................... 0
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 4 pages?

  • Spring '16
  • various

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors