Chapter 2b

Chapter 2b - Chapter 2b 1 What is sales revenue minus cost...

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Chapter 2b 1. What is sales revenue minus cost of goods sold? a. Net Income b. EBIT c. Gross Income d. Dividends 2. Prepare a balance sheet and an income statement of December 31, 2008, for Mula Inc. and answer questions(3-5) by using the following data: Cost of Goods Sold $8755 General and administrative expenses 1000 Cash 15550 Common Stock 200000 Notes Payable 300 Interest Expense 987 Net Sales 299700 Depreciation Expense 900 Accounts Receivable 13750 170000 Accumulated Depreciation 75900 Taxes (35% Rate) ? Retained Earnings ? 3. What are the Retained Earnings for Mula Inc.? 4. What does Mula owe in Taxes? 5. What is Mula’s Net Income? 6. (EBIT) Lost Inc. had sales of $14 million in sales Operating Expenses were $4.75 million, COGS were $7.7 million, Depreciation Expense was $3.75and interest expense was $.87 million. Calculate the firm’s EBIT. 7. (Taxable Income) Dharma Inc. had Operating Expenses of $9.75, Depreciation Expense $4.75, Interest Expense of $0.9, Cost of Goods Sold $10.7, and Total Revenue of $23.3.
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Chapter 2b - Chapter 2b 1 What is sales revenue minus cost...

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