Prepare a financial reporting income statement

Reference no: EM13791322

Last Year, Able Co, sold all the goods it produced(it had no finished goods inventories), and sales revenues were $1,260,000. It recorded the following costs for the year:

Manufacturing Selling and Total

Costs Administrative cost

Cost

Variable $420,000 $150,000 $570,000

Fixed 220,500 260,000 480,500

Total $640,500 $410,000 $1,050,500

A. Prepare a Financial Reporting income Statement(that is, in the form required under GAAP for U.S. external reporting).

B. Determine income in the manner used in cost-volume-profit analysis using equation 2.2 profit=revenue-Variable costs-fixed costs

C. At what sales dollar level will Able earn a before-tax target profit of $250,000?

D. At what sales dollar level will Able Break Even?

Reference no: EM13791322

Questions Cloud

Describe how the concepts of leadership and management : Describe how the concepts of leadership and management differ from each other. In what areas do they overlap? Explain how the goals of management and leadership may sometimes overlap. As a nurse leader, do you believe you can expand your influence..

Problem related to corporate finance : There have been many articles in the last decade about large corporations and the golden parachute packages given to the executives. Discuss one example of a publicized golden parachute package in the last decade. What are the advantages and disad..

The painting department uses first-in first-out : The Painting Department had 12,000 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 36,000 units were received from the previous department. complete as to m..

Is the research informed by primary sources of theories : Is the research informed by primary sources of theories, concepts, principles and models in the field, and are they referred to specifically? Are methods of data collection appropriately explained - Is data analysis complete and presented logically..

Prepare a financial reporting income statement : Prepare a Financial Reporting income Statement(that is, in the form required under GAAP for U.S. external reporting). Determine income in the manner used in cost-volume-profit analysis using equation 2.2 profit=revenue-Variable costs-fixed costs

Write a problem statement about making a dog house : Write a problem statement about making a dog house that is made of newspaper. Steps of writing a problem statement: restate the problem..

What are the common decision traps : What are the common decision traps which each group in point (2) is susceptible to? Develop a matrix or decision tree in order to compare the groups. How does the program impact the consumer's "regret"

Differences between open and closed source programs : Discuss the differences between open and closed source programs. Your response should be at least 200 words in length. You are required to use at least your textbook as source material for your response. All sources used, including the textbook, must..

Applying science to everyday life issues : How would the scientific method help Earl create an experiment to determine which food sources made people sick?

User Account

All Pages