Prepare an income statement for the year ended December 31, 20xx. Remember, you referencing/functions to enter...

     

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Prepare an income statement for the year ended December 31, 20xx. Remember, you referencing/functions to enter the values on financial statements (no direct should use typing of numbers). NOTE: not all of these accounts are for items that go on the income statement. Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Common Stock Cost of Goods Sold Shipping Expense Equipment Depreciation Expense Dividends Gain on Sale of Equipment Income Tax Expense Insurance Expense interest Expense Inventory Notes Payable Prepaid Insurance Advertising Expense Rent Expense Retained Earnings Salaries and Wages Expense Sales Revenue Salaries and Wages Payable Utilities Expense $52,400 34,100 136,000 16,000 70,000 1,219,920 13,020 318,020 27,700 24,000 4,000 20,000 18,000 10,000 52,100 87,000 12,000 67,000 68,000 28,100 237,340 1,765,000 12,000 20,300 The company had no returns or other items that would reduce sales revenue when determining net sales, so net sales is equal to sales revenue in this case. Calculate the gross profit rate and profit margin for the Phoenix Rising FC below. Profit Margin Gross Profit Rate The vice president of marketing and the director of human resources have developed a proposal whereby Phoenix Rising FC would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $94,395 and expenses by $128,905. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Comment on the effect that this plan would have on net income and on the ratios, and evaluate the merit of this proposal. (ignore income tax effects) Revised Net Income Revised Net Sales Revised Profit Margin Revised Gross Profit Rate What effect will this change have on the profit margin? What effect will this change have on the gross profit rate Prepare an income statement for the year ended December 31, 20xx. Remember, you referencing/functions to enter the values on financial statements (no direct should use typing of numbers). NOTE: not all of these accounts are for items that go on the income statement. Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Common Stock Cost of Goods Sold Shipping Expense Equipment Depreciation Expense Dividends Gain on Sale of Equipment Income Tax Expense Insurance Expense interest Expense Inventory Notes Payable Prepaid Insurance Advertising Expense Rent Expense Retained Earnings Salaries and Wages Expense Sales Revenue Salaries and Wages Payable Utilities Expense $52,400 34,100 136,000 16,000 70,000 1,219,920 13,020 318,020 27,700 24,000 4,000 20,000 18,000 10,000 52,100 87,000 12,000 67,000 68,000 28,100 237,340 1,765,000 12,000 20,300 The company had no returns or other items that would reduce sales revenue when determining net sales, so net sales is equal to sales revenue in this case. Calculate the gross profit rate and profit margin for the Phoenix Rising FC below. Profit Margin Gross Profit Rate The vice president of marketing and the director of human resources have developed a proposal whereby Phoenix Rising FC would compensate the sales force on a strictly commission basis. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $94,395 and expenses by $128,905. Compute the expected new net income. (Hint: You do not need to prepare an income statement.) Then, compute the revised profit margin and gross profit rate. Comment on the effect that this plan would have on net income and on the ratios, and evaluate the merit of this proposal. (ignore income tax effects) Revised Net Income Revised Net Sales Revised Profit Margin Revised Gross Profit Rate What effect will this change have on the profit margin? What effect will this change have on the gross profit rate

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To prepare the income statement for the year ended December 31 20XX well use the information provided Income Statement for the Year Ended December 31 ... View the full answer