4,000 8,000 Total operating expenses 50 Net S14.80 a. Seventy five percent (75%)

Question

4,000 8,000 Total operating expenses 50 Net S14.80 a. Seventy five percent (75%) orutilities expense and 70% of insurance expense-e Sor tackry operations. Apply the remaining utilities and insurance expense equally to selling arnd administrative expenses b. Eighty percent (80%) of the rent expense is associated with factory spera ons Alintetheti aray equally to selling and administrative expenses e. Factory tert sellng equipment was purchased January 1, 2016. It was estimated that the useful life of the equipment is and the residual value $5,000. The $18,000 accumulated depreciation above is for 2016. No depeeciation was charged for 2017. The companysesthe double-declining balance method of depreciation d. Inventory balances are: Decembet 31,2017 $7,000 $12,000 30,000 Direct materials.. $4,600 Work-in-process Finished goods.. $24,000 e. The company's tax rate is 20%. The president is disappointed with the results of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required: As one step in gathering data for the president, prepare a corrected schedule of cost of goods manufactured for the year ended December 31, 2017 As a second step, prepare a new multiple-step income statement for the year ended December 31,2017. l. 2. te the cost of producing one greetings card if the company produced 110,000 cards in 2017 (round your answer to two decimal points). Should the company sell its assets and get out of business? Explain. 4. This assignment must be completed in Excel. Handwritten work will not be accepted.

Explanation / Answer

e. this point states the company's tax rate i.e. 20%. whatever net profit the company will make, it has to pay tax on that at a rate of 20%.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.