Homework due Friday November 11
ACCOUNTING
INCOME STATEMENT, BALANCE SHEET CASH point PROBLEMS
1. A distributor purchases reaping from a manufacturer and resells the product to retailers for 20% more than it paid for the product. During this accounting period, the distributor had a beginning product inventory balance of $10,000,000. It received auction pitch of $45,000,000 worth of product and its ending inventory balance was $5,000,000. The deliveries to customers it interchange for 20% more than it paid. in operation(p) Expenses for the accounting period were $1,000,000 without depreciation. disparagement on its offices and warehouse amounted to $1,000,000 for the accounting period. Interest on its revolving place of credit amounted to $3,000,000 for the accounting period. The distributor is taxed at a 40% tax rate.
For Financial Reporting to shareholders, Net Income for this distributor is: $3,000,000
COGS of change products: $10,000,000 - $5,000,000 + $45,000,000 = $50,000,000
Total revenues: $50,000,000 x 1,2 = $60,000,000
|Revenues |$60,000,000 |
|COGS |($50,000,000) |
|Gross Profit |$10,000,000 |
|Operating Expenses |($1,000,000) |
|Operating Income |$9,000,000 |
|Depreciation |($1,000,000) |
|EBIT |$8,000,000 |
|Interest Expenses |($3,000,000) |
|EBT |$5,000,000 |
|Tax Expenses |($2,000,000) |
|Net Income |$3,000,000 |
2. A keep company spent $40,000,000 from...If you want to get a full essay, dress it on our website: Ordercustompaper.com
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