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Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman
Edition 8ISBN: 978-1305585454Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman
Edition 8ISBN: 978-1305585454 Exercise 54
Prepare the following statements on separate sheets of paper.
a. Use the following financial information to construct a 2015 income statement with verticalanalysis for the Sweets Treats Candy Company, Inc.: gross sales, $2,249,000; sales returns and allowances, $143,500; sales discounts, $54,290; merchandise inventory, Jan. 1, $875,330; merchandise inventory, Dec. 31, $716,090; net purchases, $546,920; freight in, $11,320; salaries, $319,800; rent, $213,100; depreciation, $51,200; utilities, $35,660; advertising, $249,600; insurance, $39,410; administrative expenses, $91,700; miscellaneous expenses, $107,500; and income tax, $38,450.
Sweets Treats Candy Company, Inc.
Income Statement, 2015
b. The following data represents Sweets Treats' operating results for 2016. Prepare a comparative income statement with horizontal analysis for 2014 and 2015: gross sales, $2,125,000; sales returns and allowances, $126,400; sales discounts, $73,380; merchandise inventory, Jan. 1, 2016, $716,090; merchandise inventory, Dec. 31, 2016, $584,550; net purchases, $482,620; freight in, $9,220; salaries, $340,900; rent, $215,000; depreciation, $56,300; utilities, $29,690; advertising, $217,300; insurance, $39,410; administrative expenses,
$95,850; miscellaneous expenses, $102,500; and income tax, $44,530.
Sweets Treats Candy Company, Inc.
Comparative Income Statement, 2015 and 2016
a. Use the following financial information to construct a 2015 income statement with verticalanalysis for the Sweets Treats Candy Company, Inc.: gross sales, $2,249,000; sales returns and allowances, $143,500; sales discounts, $54,290; merchandise inventory, Jan. 1, $875,330; merchandise inventory, Dec. 31, $716,090; net purchases, $546,920; freight in, $11,320; salaries, $319,800; rent, $213,100; depreciation, $51,200; utilities, $35,660; advertising, $249,600; insurance, $39,410; administrative expenses, $91,700; miscellaneous expenses, $107,500; and income tax, $38,450.
Sweets Treats Candy Company, Inc.
Income Statement, 2015
b. The following data represents Sweets Treats' operating results for 2016. Prepare a comparative income statement with horizontal analysis for 2014 and 2015: gross sales, $2,125,000; sales returns and allowances, $126,400; sales discounts, $73,380; merchandise inventory, Jan. 1, 2016, $716,090; merchandise inventory, Dec. 31, 2016, $584,550; net purchases, $482,620; freight in, $9,220; salaries, $340,900; rent, $215,000; depreciation, $56,300; utilities, $29,690; advertising, $217,300; insurance, $39,410; administrative expenses,
$95,850; miscellaneous expenses, $102,500; and income tax, $44,530.
Sweets Treats Candy Company, Inc.
Comparative Income Statement, 2015 and 2016
Explanation
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Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman
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