prob038 - Problem 38 (Past exam question: 45 minutes)...

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Problem 38 (Past exam question: 45 minutes) (Text: Chs. 4-7) The income statement for Holly Industries Limited for its 2008 year ended December 31 shows the following: Holly Industries Limited Statement of Income Year Ended December 31, 2008 Sales $4,782,170 Cost of sales 3,556,478 1,225,692 Expenses Selling 394,924 General and administrative 305,148 Amortization 230,000 Interest on long-term debt 37,427 Other interest 55,460 1,022,959 Other income Profit on sale of fixed assets 100,000 Equity in income of associated company 92,096 Income from other investments 17,329 Gain on sale of land 189,800 Loss on sale of portfolio investments (52,400 ) 346,825 Income before income taxes 549,558 Income taxes Current 166,700 Deferred 8,000 174,700 Net Income $ 374,858 An analysis of various accounts revealed the following information: Note 1 Included in the cost of sales: Dec. 31/08 Dec. 31/07 A) Inventories: Raw materials $ 295,000 $ 210,000 Work-in-process 565,000 370,000 Finished goods 715,000
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prob038 - Problem 38 (Past exam question: 45 minutes)...

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