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Cfas Computation

This document contains the income statement and supporting schedules for a company for Problem 4-9. It shows the company had net sales of $8,870,000, cost of goods sold of $5,900,000, operating expenses of $1,610,000, operating profit of $1,360,000, income tax expense of $360,000, and net income of $1,000,000. It also provides details on sales, cost of goods sold, purchases, and operating expenses.

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Sherica Viray
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85 views

Cfas Computation

This document contains the income statement and supporting schedules for a company for Problem 4-9. It shows the company had net sales of $8,870,000, cost of goods sold of $5,900,000, operating expenses of $1,610,000, operating profit of $1,360,000, income tax expense of $360,000, and net income of $1,000,000. It also provides details on sales, cost of goods sold, purchases, and operating expenses.

Uploaded by

Sherica Viray
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem 2-6

Assets Liabilities
Current Assets Current Liabilities
Cash 800,000 Accounts payable 900,000
Accounts receivable 750,000 Accrued expenses 150,000
Allowance for doubtful accounts (50,000) Interest payable 50,000
Prepaid expenses 160,000 Subtotal 1,100,000
Inventory 1,000,000
Financial assets at FV 440,000
Subtotal 3,100,000

Non Current Assets Non Current Liabilities


Land 500,000 Discount on bonds payable (200,000)
Building in process 5,000,000 Note payable 250,000
Patent 200,000 Bonds payable 2,000,000
Machinery and equipment 1,500,000 Subtotal 2,050,000
Accumulated depreciation (300,000)
Subtotal 6,900,000 Equity
Share capital 3,000,000
Retained earnings 4,000,000
Retained earnings appropriated for contingencies 100,000
Treasury shares (250,000)
Subtotal 6,850,000

Grand Total 10,000,000 Grand Total 10,000,000

Problem 2-8
Assets Liabilities
Current Assets Current Liabilities
Cash 400,000 Accounts payable 400,000
Accounts receivable 750,000 Notes payable-short term 450,000
Allowance for doubtful accounts (50,000) Taxes payable 150,000
Prepaid expenses 100,000 Subtotal 1,000,000
Inventory 800,000
Investments-short term 100,000
Subtotal 2,100,000

Non Current Assets Non Current Liabilities


Tangible assets 7,150,000 Discount on bonds payable (100,000)
Investments-long term 300,000 Note payable-long term 300,000
Intangibles 300,000 Bonds payable 2,000,000
Subtotal 2,200,000

Subtotal 7,750,000 Equity


Preference share capital 750,000
Ordinary share capital 2,000,000
Preference share premium 250,000
Ordinary share premium 1,000,000
Retained earnings 2,450,000
Retained earnings appropriated for contingencies 200,000
Subtotal 6,650,000

Grand Total 9,850,000 Grand Total 9,850,000


Problem 4-9
Net Sales 8,870,000
Less: Cost of Sales (5,900,000)
Gross Profit 2,970,000
Less: Operating/Selling & Admin Expenses (1,610,000)
Operating Profit 1,360,000
Less: Income Tax Expense (360,000)
Net Income 1,000,000

Net Sales
Sales 9,070,000
Less: Sales Returns and Allowances (200,000)
Less: Sales Discounts
Total 8,870,000

Cost of Sales
Beg inventory 1,500,000
Add: Net Purchases
Purchases 5,750,000
Less: Purchase discounts (100,000)
Less: Purchase returns and allowances
Add: Freight in 150,000 5,800,000
Less: End inventory (1,400,000)
Total 5,900,000

Operating Expenses
Uninsured flood loss 340,000
Officer salaries 400,000
Depreciation-building 120,000
Office supplies 60,000
Depreciation-store equipment 110,000
Store supplies 80,000
Sales salaries 500,000
Total 1,610,000

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