Prepare an income statement - single-step approach

Assignment Help Accounting Basics
Reference no: EM132651975

Question - Company XYZ had the following information during 2020:

1. Beginning inventory was $50,000. Purchases of inventory was $20,000. Ending inventory was 35% of beginning inventory at the end of the year.

2. Cash on hand was $325,000.

3. Sales revenue was $225,000.

4. Operating expenses were half of cost of goods sold.

5. Income tax rate was 20%.

Required - Prepare an income statement for 2020 using the (1) single-step approach and (2) multiple-step approach. What are the advantages and disadvantages of each?

 

Reference no: EM132651975

Questions Cloud

What does suggest about plush carpet mill inc profitability : Look at the profitability margin (gross profit margin and net profit margin) of Plush Carpet Mill Inc. What trends do you notice over 2003-2005
Calculate the value of a share assuming a zero growth : A firm has an expected dividend next year of $3.60 and a required return of 12 percent. Calculate the value of a share assuming a zero growth rate of dividends.
Manage risk within organizations and enterprises : This week give a good discussion and look at some of the frameworks that are used to manage risk within organizations and enterprises.
Calculate the yield to maturity of bond-noor industries : The bond will mature in ten years and currently sells for $1,250. Use the approximation formula to calculate the yield to maturity (YTM) of this bond.
Prepare an income statement - single-step approach : Prepare an income statement for 2020 using the (1) single-step approach and (2) multiple-step approach. What are the advantages and disadvantages of each
Find what is the income from continuing operations : Find What is the income from continuing operations? what is the other comprehensive income? What is the comprehensive income?
Compute the amount of cash to be reported : An I.O.U. from Marianne Koch, a company customer, in the amount of P190,000. Compute the amount of cash to be reported
Provide supporting argument that stereotypes are not dying : Provide supporting argument that Stereotypes are NOT dying.
What of the ways the company could finance the company : What of the ways the company could finance the company without significant negative changes to the above financial metrics (ratios)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Firm inventory turnover ratio

The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5 while maintaining the same levels of sales, how much cash will be freed up?

  Nation narrow assurance company provides both automobile

nation narrow assurance company provides both automobile and life insurance to its customers. income statements for the

  Determine the ending inventory at september

Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods.? calculate the sum of ending inventory and cost of goods

  Analysis on prime cost and overhead variances

This problem belongs to basic Accounting questions and it discuss about writing an analysis on prime cost and overhead variances using a fictitious company. The analysis includes 6 direct material variances, 2 variable overhead variances and 4 dir..

  Use a cloud based accounting system to process transactions

Part A requires you to use a cloud based accounting system to process transactions for your client

  Largest suppliers of component parts

The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested that you and your staff analyze the fe..

  Provide the appropriate accounting treatment for patents

You have been hired as a consultant for XYZ Research Co. XYZ Research Co. incorporated in 2010. XYZ 's business centers on developing new technology for interplanetary exploration.

  Determine the amounts fullerton should capitalize

Fullerton Waste Management purchased land and a warehouse for $740,000. Determine the amounts Fullerton should capitalize as the cost of the land and building

  Compute gross profit percentage and rate of inventory

The company ended 2016 with inventory of $240 million. Compute 007's gross profit percentage and rate of inventory turnover for 2016

  Lliabilities reported in a classified balance sheet

How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?

  What costs are relevant for preparing financial statements

What costs are relevant for each of the following purposes? For preparing financial statements for July

  Wayside machine tool company purchased a 600000 welding

wayside machine tool company purchased a 600000 welding machine to use in production of large machine tools and robots.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd