Prepare an income statement for 2020

Assignment Help Financial Accounting
Reference no: EM133234337

Question 1

Company XYZ had the following information during 2020:

1. Beginning inventory was $50,000. Purchases of inventory was $20,000. Ending inventory was 35% of beginning inventory at the end of the year.

2. Cash on hand was $325,000.

3. Sales revenue was $225,000.

4. Operating expenses were half of cost of goods sold.

5. Income tax rate was 20%.

Please prepare an income statement for 2020 using the (1) single-step approach and (2) multiple-step approach. What are the advantages and disadvantages of each?

Reference no: EM133234337

Questions Cloud

Internal control principles : Rita J Company has the following internal control procedures over cash payments:
What steps are necessary to mitigate risk : What steps are necessary to mitigate risk to an IT infrastructure's confidentiality, integrity, and availability with sound access controls
Explain accounting concept : Which accounting concept is used in each of the following accounting treatments?
Stockholder equity section of the balance sheet : Company XYZ had the following information in their stockholder's equity section of the balance sheet during 2020:
Prepare an income statement for 2020 : 1. Beginning inventory was $50,000. Purchases of inventory was $20,000. Ending inventory was 35% of beginning inventory at the end of the year.
Topic - RSS feed reader project using Java : Topic - RSS feed reader project using Java - What is your proposed research project's topic? What problem or issue is your research designed to solve
Compute depreciation for year : A machine costing $216,800 with a four-year life and an estimated $20,000 salvage value is installed in Luther Company's factory on January 1. The factory manag
Def insurance for the loss of canned products : ABC limited which operates a supermarket received compensation from DEF Insurance for the loss of canned products destroyed by an accident in its warehouse. For
Write essay describing your vision for your career : UNV-504 Introduction to Graduate Studies in the College of Business Assignment - Three Pillars and Future Impact Paper, Grand Canyon University

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  What happens to the new expansion inc eps for year

Expansion Inc. approaches Genie Inc., What happens to the new Expansion Inc.'s EPS for year 1 compared to what EPS would be without the merger?

  Notes recievable

On November 1, 2014, Company N accepted a $10,000, 4 percent, 90 day note from a customer for $10,000 in sales. Interest is payable to Company N at retirement on January 1, 2015. Prepare the journal entries for the following activity on the books of ..

  What is meant by limited life as relates to partnership

What is meant by "limited life" as it relates to partnerships? What is residual profit as it relates to a partnership? What is Articles of Partnership?

  What is the value of stock for fast growth company

Dividends are expected to grow at a constant rate of 18% per year. If you require a 20 percent return on stocks in this risk class, what is the value of stock?

  How much should NZ Company recognise as the cost

NZ Company began using the equipment on 1 July 2019. How much should NZ Company recognise as the cost of the equipment on 1 July 2019

  What is peterson cost of retained earnings

Next year's dividends is expected to be $1.85 and then growing at a constant rate 7% thereafter, what is, in percent, Peterson's cost of retained earnings?

  Find stiller financial statement presentation

Find Stiller's financial statement presentation and format. There are at least 20 failures by the company regarding proper reporting

  Prepare journal entry to record this increase in fair value

At December 31, 2023, it is estimated that the division's recoverable amount increased to HK$3,180 million. Prepare the journal entry to record this increase

  How do determine the participation in the year net income

Tyler Hawes and Piper Albright formed a partnership, Determine the participation in the year's net income of $104,000 under each of the independent assumption

  Determine the cash payments made to suppliers

Assuming that accounts payable relate only to the purchase of inventory, you are to determine the cash payments made to suppliers during the year.

  Journalize each transaction in a two-column journal

Journalize each transaction in a two-column journal, referring to the following chart of accounts in selecting the accounts to be debited and credited

  Explain the problems lizards corporation could experience

Briefly explain the problems Lizards Corporation could experience with respect to confidentiality of information and records in the new system.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd