Excel_Student_04-49kh

# Excel_Student_04-49kh - Multiplied by of sales 25 General...

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04-49 Name: Kathy Haines Enter the appropriate numbers/formulas in the blue-shaded cells. The word “Wrong” will appear to the left of incorrect entries. Supporting computations for the income statement below: (a) Cash collections \$105,260 Accounts receivable, December 31, 2012 (22,150) Accounts receivable, December 31, 2013 18,920 Sales \$102,030 (b) Cash payments \$92,450 Accounts payable, December 31, 2012 (10,830) Accounts payable, December 31, 2013 7,120 Cash general and administrative expenses* (22,447) Selling expenses (12,352) Wages and salaries payable, December 31, 2012 (4,450) Purchases \$49,491 * Total general and administrative expenses \$28,569 Less depreciation on store equipment 3,061 Cash general and administrative expenses \$25,508 (c) Selling expense \$12,352 Divided by % of gross profit 20% Gross profit \$61,760 (d) Sales (a) \$102,030 Gross profit (c) 61,760 Cost of goods sold \$40,270 Beginning inventory 12,180 Purchases (b) 49,491 Ending inventory \$21,401 (e) Sales \$102,030

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Unformatted text preview: Multiplied by % of sales 25% General and administrative expenses \$25,508 (f) Income before income taxes (see income statement) \$23,900 Multiplied by income tax rate 40% Income taxes \$9,560 (g) General and administrative expenses \$25,508 Multiplied by % of general and admin. expenses 12% Depreciation \$3,061 SAYER SPORTING GOODS Income Statement For the Year Ended December 31, 2013 Sales \$102,030 (a) Cost of goods sold: Beginning inventory \$12,180 Purchases 49,491 (b) Goods available for sale \$61,671 Less: Ending inventory 21,401 (d) Cost of goods sold 40,270 Gross profit \$61,760 (c) Operating expenses: Selling expenses \$12,352 General and administrative expenses 25,508 Total operating expenses 37,860 Hint: Complete supporting computations as needed to plug in determined amounts into income statement. Income from operations before taxes \$23,900 Income taxes 9,560 (f) Net income \$14,340 Earnings per share \$2.87...
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## This note was uploaded on 08/12/2011 for the course ACCT 2201 taught by Professor Alvarez during the Spring '11 term at FIT.

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Excel_Student_04-49kh - Multiplied by of sales 25 General...

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