Exam 4: Financial Reporting and Analysis

Both return on assets and working capital are profitability measures.

Financial statements are important to the efficient allocation of resources in our economy.

Which of the following accounts is not classified as a selling expense on the income statement?

Use this information to answer the following question. Alcorn \& Zeto Company Income Statement For the Year Ended December 31, 2010 Revenues Net sales \1 00,000 Dividend income 8,750 Total revenues \1 08,750 Costs and expenses Costs of goods sold \ 30,000 Selling expenses 10,000 General and administrative expenses 13,750 Interest expense 6,250 Total costs and expenses 60,0000 Income before income taxes \4 8,750 Income taxes 19,500 Net income \ 29,250 If the income statement were prepared in a multistep form,income before income taxes would be

Use this information to answer the following question. Alcorn \& Zeto Company Income Statement For the Year Ended December 31, 2010 Revenues Net sales \1 00,000 Dividend income 8,750 Total revenues \1 08,750 Costs and expenses Costs of goods sold \ 29,000 Selling expenses 10,000 General and administrative expenses 13,750 Interest expense 6,250 Total costs and expenses 59,0000 Income before income taxes \ 49,750 Income taxes 19,500 Net income \ 30,250 If the income statement were prepared in a multistep form,gross margin from sales would be

In which category would office salaries expense be included?