Title | 3 Income Statement exercises |
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Course | Comptabilité Internationale |
Institution | Grenoble École de Management |
Pages | 2 |
File Size | 121.9 KB |
File Type | |
Total Downloads | 107 |
Total Views | 172 |
Download 3 Income Statement exercises PDF
INC INCOM OM OME E SSTA TA TATE TE TEME ME MEN NT EX EXER ER ERCIS CIS CISES ES EXERCISE 1 (LO prepare an Income Statement) Problem Consider a trading company which buys and immediately resells merchandise in a given period: Sales Purchase price of merchandise sold Transport costs on sales Sales representatives’ wages and expenses Sales representatives’ travelling expenses Headquarters’ wages and expenses Rent for Headquarter buildings
1 000 200 50 100 30 60 50
Prepare a P&L statement for the period Note: In Managerial Accounting, the important thing is to show how you got the result. Calculate the result in stages, grouping together expenses of a similar nature and calculate the intermediary margins. A traditional managerial accounting P&L will show the following categories: Sales - Cost of sales (purchasing + manufacturing costs of the products sold) = Gross margin - Research & development expenses - Marketing & selling expenses - General & administrative expenses = Operating income
EXERCISE 2 « Jonathan Livingstone » (LO prepare an Income Statement) Problem Jonathan Livingstone has the following financial details as at December 31st 2008. Sales Opening stock Purchases Closing stock Advertising Motor expenses Repairs Sundry expenses Income from financial investments Wages Insurance Electrcity Telephone Purchase returns Sales returns
200 000 20 000 140 000 3 000 3 500 1 500 2 000 2 500 3 000 4 000 3 000 3 500 4 000 1 000 3 000
Prepare Jonathan Livingstone’s Income Statement as at December 31st 2008
Exercice 3 « Sara Wellington » (LO prepare an Income Statement and an Other Comprehensive Income statement) Problem Sara Wellington SA supplies following financial information (random listing) as at December 31st 2010 Other gains (losses) Net sales revenue Loss on discontinued operations Extraordinary gain Cost of goods sold Operating expenses Accounts Receivable
-21 000 184 000 -17 000 4 000 72 000 60 000 16 000
Corporate tax is 30% and applies to all the items. Sara Wellington also recorded unrealised gains on securities amounting €1.100 and foreign currency translation of €2.400 during accounting period 2010. Both operations are disclosed net of tax.
Prepare a) Income Statement 2010 b) Statement of Comprehensive Income 2010...