Beruflich Dokumente
Kultur Dokumente
Beginning inventory...................................................
67,000
Add: Purchases........................................................
380,000
Cost of goods available for sale................................
Less: Ending inventory.............................................
50,000
Cost of goods sold.....................................................
$397,000
447,000
EXERCISE 5-8
(a)
MISRA COMPANY
Income Statement
For the Year Ended December 31, 2012
Net sales...............................................
$2,050,000
Cost of goods sold..............................
987,000
Gross profit..........................................
1,063,000
Operating expenses
Administrative expenses.............
Selling expenses..........................
Total operating expenses....
885,000
Income from operations......................
Other revenues and gains
Interest revenue...........................
Other expenses and losses
Loss on disposal of
plant assets...............................
Interest expense...........................
(89,500)
Income before income taxes..............
Income tax expense.............................
25,000
Net income...........................................
63,500
Earnings per share
$465,000
420,000
178,000
65,000
$83,500
71,000
(154,500)
88,500
$3.175
EXERCISE 5-9
(a)
$5,450
3,104
2,346
$715
499
114
161
46
1,328
1,018
207
274
$ 537
EXERCISE 5-10
Inventory, September 1, 2011....................................
18,700
Purchases....................................................................
Less: Purchase returns and allowances.................
Net purchases.............................................................
Add: Freight-in.........................................................
Cost of goods purchased..........................................
157,000
Cost of goods available for sale................................
Inventory, August 31, 2012........................................
(21,000)
Cost of goods sold.............................................
$154,700
$154,000
5,000
149,000
8,000
175,700
PROBLEM 5-1B
(a)
General Journal
Date
Apr. 2
Account Titles
Inventory.............................................................
Accounts Payable.......................................
Debit
8,700
Accounts Receivable.........................................
Sales Revenue............................................
6,000
3,700
Freight-out..........................................................
Cash.............................................................
200
Accounts Payable..............................................
Inventory.....................................................
400
11
8,300
13
Cash....................................................................
Sales Discounts ($6,000 X 2%).........................
Accounts Receivable.................................
5,880
120
14
Inventory.............................................................
Cash.............................................................
4,700
16
Cash....................................................................
Inventory.....................................................
500
18
Inventory.............................................................
Accounts Payable.......................................
5,500
20
Inventory.............................................................
Cash.............................................................
180
Credit
8,700
6,000
3,700
200
400
8,134
166
6,000
4,700
500
5,500
180
General Journal
Account Titles
Cash....................................................................
Sales Revenue............................................
Debit
8,300
5,580
26
Inventory.............................................................
Cash.............................................................
2,300
27
Accounts Payable..............................................
Cash.............................................................
Inventory ($5,500 X 2%).............................
5,500
29
30
Inventory.............................................................
Cost of Goods Sold....................................
120
Accounts Receivable.........................................
Sales Revenue............................................
3,980
2,500
Credit
8,300
5,580
2,300
5,390
110
180
120
3,980
2,500
PROBLEM 5-4B
(a)
Sales revenues
Sales revenue........................................
$626,000
Less: Sales returns and
allowances..................................
8,000
Net sales................................................
618,000
Cost of goods sold.......................................
412,000
Gross profit...................................................
206,000
Operating expenses
Salaries and wages expense................ $111,000
Depreciation expense...........................
23,400
Utilities expense....................................
11,000
Insurance expense................................
8,400
Maintenance and repairs expense.......
6,200
Total operating expenses.............
160,000
Income from operations...............................
Other revenues and gains
Gain on disposal of plant assets.........
Other expenses and losses
Interest expense....................................
(2,700)
Income before income tax............................
Income tax expense......................................
15,000
46,000
$4,300
(7,000)
43,300
Net income....................................................
28,300
Earnings per share ......................................
($28,300 / 15,000 shares)
$1.887
47,500
Current assets
Cash....................................................
Accounts receivable..........................
Inventory.............................................
Prepaid insurance..............................
Total current assets....................
$118,900
Property, plant, and equipment
Buildings.............................................
Less: Accumulated depreciation
buildings..................................
Equipment..........................................
Less: Accumulated depreciation
equipment................................
194,900
Total assets.................................
$313,800
$ 28,000
45,500
43,000
2,400
$190,000
52,500
100,000
137,500
42,600
57,400
Current liabilities
Accounts payable..................................................
Mortgage payable..................................................
Salaries and wages payable.................................
Interest payable.....................................................
Total current liabilities...................................
$98,800
Long-term liabilities
Mortgage payable ($62,500 $20,000).................
42,500
Total liabilities................................................
141,300
Stockholders equity
$ 73,300
20,000
3,500
2,000
Common stock.......................................................
Retained earnings..................................................
Total stockholders equity.............................
172,500
Total liabilities and stockholders equity.....
$313,800
140,000
32,500
BYP 5-2
(a)
Tootsie Roll
Profit margin ratio
(1) (net income/net
sales)
(2) Gross profit (000s)
(net sales CGS)
Gross profit rate
(3) (gross profit/net
sales)
$53,475
$499,331
= 10.7%
$176,947
$495,592
= 35.7%
$62,079
$62,079 66,527
$66,527
Hershey Foods
$435,994
$5,298,668
= 8.2%
$2,053,137
$5,298,668
= 38.7%
$761,590
= 6.7%
$761,590 589,898
$589,898
= +29.1%
(b) Tootsie Rolls higher profit margin ratio suggests that it was
better at turning sales dollars into net income. Its gross profit
rate suggests that Hershey Foods can command a higher markup
on its goods or that it is better at controlling its cost of goods
sold. Tootsie Rolls operating income decreased 6.7% while
Hershey Foods increased by 29.1%. A major reason for Tootsie
Rolls decline in operating income was due to $14,000 recognized
for impairment charges. (Without this charge operating income
would have increased by 14% rather than the 6.7% decline.)