How analyzed the capital budget. PRACTICE: Prepare the statement with the following data: Sales revenue 300,000 Less:
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Question:
How analyzed the capital budget.
PRACTICE:
- Prepare the statement with the following data:
Sales revenue | 300,000 |
Less: cost and expenses Manufacturing cost Depreciation Selling and administrative expenses | 89,000 27,600 18,980 |
Income before income taxes | |
Income tax expense | 8,800 |
Net income |
2. Prepare the statement with the following data:
Sales revenue | 273,000 |
Less: cost and expenses Manufacturing cost Depreciation Selling and administrative expenses | 98,000 28,600 28,980 |
Income before income taxes | |
Income tax expense | 12,800 |
Net income |
23,900 / 6,700 = 28%
- Do the calculation in order to get Annual rate of Return
Net income | Average investment | Annual Rate of Return |
125,000 | 12.789 | |
156,000 | 13,890 | |
178,000 | 16,900 | |
200,000 | 23,789 |
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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