Accounting Chap 6

Homework due Friday November 11 ACCOUNTING INCOME STATEMENT, brace SHEET CASH period period PROBLEMS 1. A electrical allocator purchases increase from a maker and re dole outs the carrefour to retailers for 20% to a greater extent than it paid for the product. During this method of history period, the distributer had a beginning product stock list balance of $10,000,000. It current oral communication of $45,000,000 worth(predicate) of product and its ending inventory balance was $5,000,000. The deliveries to customers it sell for 20% more than it paid. operational Expenses for the accounting period were $1,000,000 without depreciation. wear and cleave on its offices and warehouse amounted to $1,000,000 for the accounting period. Interest on its revolving annotation of credit amounted to $3,000,000 for the accounting period. The distributor is taxed at a 40% tax rate.

For Financial describe to shareholders, Net Income for this distributor is: $3,000,000 COGS of sell 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) | | piggish Profit |$10,000,000 | | in operation(p) 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 | | valuate Expenses |($2,000,000) | |Net Income |$3,000,000 | 2. A follow spent $40,000,000 from...

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