As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis
Question:
As the assistant accounting manager for Jefferson Airplane Parts, Inc., construct an income statement with vertical analysis for the first quarter of 2019 from the following information: gross sales, $240,000; sales discounts, $45,500; beginning inventory, Jan. 1, $86,300; ending inventory, March 31, $103,300; net purchases, $76,800; total operating expenses, $108,000; and income tax, $14,450. (Round percentages to one decimal place.)
Revenue | ||
---|---|---|
Gross Sales | $ | % |
Less: Sales Discounts | ||
Net Sales | ||
Cost of Goods Sold | ||
Merchandise Inventory, Jan. 1 | ||
Net Purchases | ||
Goods Available for Sale | ||
Less: Merchandise Inventory, Mar. 31 | ||
Cost of Goods Sold | ||
Gross Margin | ||
Operating Expenses | ||
Income before Taxes | ||
Income Tax | ||
Net Income | $ | % |
(b)
You have just received a report with the second-quarter figures. Prepare a comparative income statement with horizontal analysis for the first and second quarter of 2019: gross sales, $298,000; sales discounts, $41,300; beginning inventory, April 1, $103,300; ending inventory, June 30, $96,580; net purchases, $84,320; total operating expenses, $126,600; and income tax, $16,500. (Round percentages to one decimal place.)
Increase (Decrease) | ||||
---|---|---|---|---|
2nd Quarter | 1st Quarter | Amount | Percent | |
Revenue | ||||
Gross Sales | $ | $ | $ | % |
Less: Sales Discounts | ||||
Net Sales | ||||
Cost of Goods Sold | ||||
Merchandise Inventory, Beginning | ||||
Net Purchases | ||||
Goods Available for Sale | ||||
Less: Merchandise Inventory, Ending | ||||
Cost of Goods Sold | ||||
Gross Margin | ||||
Operating Expenses | ||||
Income before Income Tax | ||||
Income Tax | ||||
Net Income | $ | $ | $ | % |
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim