Prepare an eps summary for income statement, Cost Accounting

You are thinking of investing in one of two corporations, both in the same industry, the XYZ Corporation or the ABC Corporation. Selected data follows:

Sales data for the year ended 12/31/10:

XYZ: Gross revenue $31,485,000; Returns $ 725,000

ABC: Gross revenue $37,245,000; Returns $1,230,000

Selling expenses:

XYZ: Payroll $2,642,000; benefits $1,150,000, travel $275,200; supplies $310,150, commissions $420,300, marketing $720,000, postage $210,300, misc $39,500.

ABC: Payroll $3,110,000; benefits $1,310,000, travel $320,200; supplies $460,300, commissions $502,300, marketing $790,000, postage $242,100, misc $82,300.

Administrative expenses:

XYZ: Distribution $1,028,000, warehouse $959,000, IT $625,200, finance $529,400, human resources $413,250; administrative $310,000, depreciation $122,000

ABC: Distribution $1,212,310, warehouse $1,020,220, IT $616,420, finance $515,270, human resources $385,450; administrative $350,600, depreciation $156,100.

Other Gains and Losses

XYZ: Sale of machine with a book value of $32,000 for $45,000 cash.

ABC: Sold a marketable security with at a profit of $15,000.

Irregular Items:

XYZ: Extraordinary loss due to warehouse fire of $240,000 before tax effect.

ABC: Loss on sale of discontinued division of $575,000 before tax effect.

Tax rates: 35% for both companies:

Outstanding shares of common stock:

XYZ: 800,000 shares

ABC: 950,000 shares.

Selected Balance Sheet Information:

XYZ: Cash $1,520,000; marketable securities (at cost $410,300, at fair value $495,400); Account receivable (gross $1,725,400 less allowance for doubtful accounts of $112,100); Finished goods inventory, opening balance $322,000, purchases $9,450,000, ending balance $242,000. Prepaid expenses $55,210. Plant assets at cost $21,400,000, accumulated depreciation $7,312,000. Accounts payable, $613,410, accrued expense payable $191,260, bonds payable $7,383,375, capital stock $1,450,000, retained earnings beginning balance $1,500,210, dividends paid, $1 per share.

ABC: Cash $1,960,000; marketable securities (at cost $352,430, at fair value $292,400); Account receivable (gross $2,935,400 less allowance for doubtful accounts of $172,300); Finished goods inventory, opening balance $420,000, purchases $11,842,400, ending balance $358,420. Prepaid expenses $22,110. Plant assets at cost $19,240,000, accumulated depreciation $8,245,000. Accounts payable, $693,450, accrued expense payable $201,220, bonds payable $3,579,217, Capital stock $2,210,000, retained earnings beginning balance $2,240,000, dividends paid $ per share.

Required:

1) Prepare a separate schedule comparing the selling and administrative expenses of the two companies. Separate subtotals are required for both selling and administrative expenses. You should have a column which compares the dollar difference by line item of the two companies.

a. Sort XYZ Company Selling expenses from highest amounts to lowest using the sort function listed in the table function on the tool bar.

2) Prepare a separate schedule of cost of goods sold for each of the companies.

3) Prepare a comparative income statement in good form (chapter 4) for the two companies. Be sure the selling, administrative and cost of goods number comes from your first two schedules by way of formula. DO NOT SIMPLY TYPE IN THE NUMBERS. Percentage of sale data should be presented for cost of goods sold, gross margin, selling expense and administrative expense and net income.

4) Prepare an EPS summary following your income statement.

5) Prepare a classified balance sheet.

6) Prepare a Statement of Retained Earnings.

Posted Date: 3/19/2013 6:11:40 AM | Location : United States







Related Discussions:- Prepare an eps summary for income statement, Assignment Help, Ask Question on Prepare an eps summary for income statement, Get Answer, Expert's Help, Prepare an eps summary for income statement Discussions

Write discussion on Prepare an eps summary for income statement
Your posts are moderated
Related Questions
A Market Value Schedule (in one report),for the complex. This schedule should show the market value of the complex at the end of each year of the project.  Valuation method and oth

The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The soup is shipped to four regional warehouses. Due to hig

Question: Timothy Ltd uses a flexible budget for overhead costs. The company expects to produce 40,000 units of the product it manufactures. Each unit requires 0.40 direct labo

STANDARD COSTING STANDARD COSTING is a method, which uses standards for costs and revenues for the idea of control by variance analysis. It can be used either through operation


Evaluate the discounted mean term (DMT) of a bond redeemable at $120 nominal in 15 years time with annual coupons of 7% (based on a nominal bond of $100) at interest rates of 6% ,

Absorption vs. Variable Costing Varilux manufactures a single product and sells it for $10 per unit. At the beginning of the year there were 1,000 units in inventory. Upon further

Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000

Shirley and Ken are in partnership, trading in the construction industry. The year end for the partnership business is 30 June. You are the Assistant Accountant and have been as

hml analysis , sde analysis,sos analysis, golf analysis , xyz analysis