Homework 5

Homework 5 - 57,000 Store Equipment 105,000 Less:...

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Jackie Gragnola BUS 214, MW 2-4 Bissonnette P5-4A (a) Sales Revenues Sales $914,000 Less: Sales returns and allowances 20,000 Net Sales 894,000 Cost of goods sold 633,300 Gross Profit 260,700 Operating Expenses Delivery Expense $6,200 Depreciation Expense-Delivery Equipment 4,000 Depreciation Expense-Store Equipment 9,500 Insurance Expense 9,000 Rent Expense 29,000 Salaries Expense 110,000 Sales Commissions Expense 17,000 Utilities Expense 10,600 Total Operating Expenses 195,300 Income from Operations 65,400 Other Revenues and Gains Gain on sale of equipment 2,000 Other Expenses and Losses Interest Expense 5,000 (3,000) Income before property tax 62,400 Property tax expense 3,500 Net Income $58,900 Retained Earnings, Beginning $14,200 Add: Net Income 58,900 73,100 Less: Dividends 12,000 Retained Earnings, Nov. 30 $61,100 Assets Current Assets Cash $8,000 Accounts Receivable 17,200 Merchandise Inventory 36,200 Prepaid Insurance 6,000 Total Current Assets $67,400 Property, Plant, and Equipment Delivery Equipment
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Unformatted text preview: 57,000 Store Equipment 105,000 Less: Depreciation- Deliv. Equipment 20,000 Depreciation- Store Equipment 38,000 Total PPE 104,000 Total Assets $171,400 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $18,300 Notes Payable 47,500 Property Taxes Payable 3,500 Sales Commissions Payable 6,000 Total Current Liabilities $75,300 Stockholders' Equity Common Stock 35,000 Retained Earnings 61,100 Total Stockholders' Equity 96,100 Total Liabilities and Stockholders' Equity $171,400 P5-4A (b) Profit Margin Net Income 58900 0.0658836689 Ratio Net Sales 894000 Profit Margin Ratio is 6.59% Gross Profit Gross Profit 260,700 0.29 Rate Net Sales 894000 Gross Profit Rate is 29% Zwick Department Store Income Statement For the year ending Nov. 3, 2007 Zwick Department Store Retained Earnings Statement For the year ending Nov. 30, 2007 Zwick Department Store Classified Balance Sheet Nov. 30, 2007...
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This note was uploaded on 11/21/2011 for the course BUS 214 taught by Professor Waker during the Winter '08 term at Cal Poly.

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