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Homework answers / question archive / The following balance were taken from the books of(giiiksljrnited on December 31, 2020 Interest Income $140,000 Cash $80,000 Sale Revenue $2,240,000 Accounts Receivable $244,000 Prepaid Insurance $32,000 Sales Return and Allowances $236,000 Allowance for Doubtful Accounts $12
The following balance were taken from the books of(giiiksljrnited on December 31, 2020
Interest Income $140,000 Cash $80,000 Sale Revenue $2,240,000 Accounts Receivable $244,000 Prepaid Insurance $32,000 Sales Return and Allowances $236,000 Allowance for Doubtful Accounts $12.000 Sales Discounts 080.000 Land $160,000 Equipment $320,000 Building $230,000 Cost of goods Sold $1.008,000
Accumulated depreciation - equipment $64,000 Accumulated depreciation - buildings $46,000 Notes Receivable $250,000 Selling expenses $320,000 Accounts Payable $280.000 Bonds Payable $162,000 Administrative expenses 8160.000 Accrued Liabilities 532.000 Interest expense 5100,000 Notes Payable $160,000 Loss-other (Storm) 5248,000 Depreciation expense 5100.000 Assume a total effective tax rate on all items is 25%
| XYZ Ltd. | ||
| Income Statement | ||
| For the year ended December 31, 2020 | ||
| Revenue | ||
| Sales revenue | $2,240,000 | |
| Less: | ||
| Sales return and allowances | 236000 | |
| Sales Discounts | 80000 | 316000 |
| Net Sales Revenue | $1,924,000 | |
| Cost of goods sold | 1008000 | |
| Gross Profit | $916,000 | |
| Operating Expenses | ||
| Selling expense | 320000 | |
| Administrative Expense | 160000 | |
| Total Operating expenses | 480000 | |
| Income from operations | $436,000 | |
| Non-operating Income and (Expenses): | ||
| Interest Income | 140000 | |
| Interest Expense | -100000 | |
| Loss-other (Storm) | ($248,000) | |
| Total Non operating income and expenses | -208000 | |
| Income before income taxes | $228,000 | |
| Income taxes ($228,000*25%) | $57,000 | |
| Net Income | $171,000 | |
