Week 4 RA - $465,000 In order to double net income my...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Week Four Decision Case Complete Decision Case 2 on page 344 and submit to your instructor. Campbell Appliance Income Statement Year Ended December 31, 2008 Sales $800,000 Cost of goods sold $660,000 Gross Profit $140,000 Operating expenses $100,000 Net income $40,000 CAMPBELL APPLIANCE Balance Sheet December 31, 2008 Assets Liabilities and Capital Cash $30,000 Account payable $35,000 Inventories $75,000 Note payable $280,000 Land and building, net $360,000 Total liabilities $315,000 Owner, capital $150,000 Total assets $465,000 Total liabilities and capital
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $465,000 In order to double net income my strategies would be to adapt the FIFO method of accounting is the lower cost of goods sold and the highest gross profit. Net income is also the highest under FIFO when inventory costs are rising. To cut operating expense will also increase net income. To increase sales will also help increase net income. To decrease liabilities and increase Capital by paying off account payable and note payable and increasing cash and capital....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online