Compute the amount of realized gross profit to be

Reference no: EM13601231

Swift Corp., a capital goods manufacturing business that started on January 4, 2012, and operates on a calendar-year basis, uses the installment-sales method of profit recognition in accounting for all its sales. The following data were taken from the 2012 and 2013 records.
2012 2013

Installment sales $561,000 $611,000
Gross profit as a percent of costs 24% 29%
Cash collections on sales of 2012 $139,000 $153,000
Cash collections on sales of 2013 -0- $243,000

The amounts given for cash collections exclude amounts collected for interest charges.

(a) Compute the amount of realized gross profit to be recognized on the 2013 income statement, prepared using the installment-sales method. (Round gross profit percentage to 3 decimal places, e.g. 19.355%. Round answers to 0 decimal places, e.g. 5,275.)

Reference no: EM13601231

Questions Cloud

Possible to deviate from gaap and the accounting cycle and : possible to deviate from gaap and the accounting cycle and still prepare financial statements because the standard

Madison inc uses job order costing for its brand new line : madison inc. uses job order costing for its brand new line of sewing machines. the cost incurred for production during

What financial information do you think a manager needs to : what financial information do you think a manager needs to perform hisher job effectively? what different types of

January 2 2010 indian river groves began construction of a : january 2 2010 indian river groves began construction of a new citrus processing plant. the automated plant was

Compute the amount of realized gross profit to be : swift corp. a capital goods manufacturing business that started on january 4 2012 and operates on a calendar-year basis

For each of these five separate cases identify the : for each of these five separate cases identify the principle of internal control that is violated. recommend what the

On june 1 royal corp began operating a service company with : on june 1 royal corp. began operating a service company with an initial cash investment by shareholders of 3900000. the

Lucia ltd reported net income of 136400 for the year ended : lucia ltd. reported net income of 136400 for the year ended december 31 2013. january 1 balances in accounts

On july 31st 2010 fenton company had a cash balance per : on july 31st 2010 fenton company had a cash balance per books of 6140. the statement from jackson state bank on that

User Account

All Pages