ACC-502 M3. P5-35A - Practise Question PDF

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Requirement 1 GRADE A STEAK COMPANY Income Statement Quarter Ended April 30, 2015 Revenues: Net Sales Revenue Interest Revenue Expenses: Cost of Goods Sold Rent Expense Utilities Expense Delivery Expense Interest Expende Depreciation Expense Total Expenses Net Income:

286600 800 $287,400 $162,100 31560 15780 3630 2000 1630 $216,700 $70,700

Requirement 2 GRADE A STEAK COMPANY Income Statement Quarter Ended April 30, 2015 Sales Revenue Sales Returns and Allowances Sales Discounts Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses: Rent Expense Utilities Expense Delivery Expense Total Selling Expenses Administrative Expenses: Rent Expense Utilities Expense Depreciation Expense Total Administrative Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses): Interest Revenue Interest Expense Total Other Revenues and (Expenses) Net Income

$296,100 $7,500 $2,000 ####### $162,100 $124,500

$21,780 $10,890 $3,630 $36,300 $9,780 $4,890 $1,630 $16,300 $52,600 $71,900 $800 -$2,000 -$1,200 $70,700

Requirement 3 M. Davidson, manager of the company, strives to earn a gross profit percentage of at least 50%. Did Grade A achieve this goal? Show your calculations.

Net Sales Revenue Less: Cost of Goods Sold Gross Profit

286600 162100 124500

Gross profit percentage = Gross Profit / Net sales Revenue = 0.43440335 Grade A did not achieve this goal....