Prepare income statement and analysis of retained earnings, Financial Accounting

You are preparing and income statement and analysis of retained earnings for Pacioli Wholesale Corporation for the years ended June 30, 2011 and 2012 based on the following information:

a. Sales for the year ended 6/30/11 were $1,289,040 and grew by 10% in the following year

b. Cost of goods sold is 60% of sales in both years.

c. Selling expense was $128,544 for YE 6/30/11 and went up by 8% the following year.

d. Administrative expense was $301,008 in the YE 6/30/11 and went up by 6% the following year.

e. Interest expense was $48,644 for YE 6/30/11 but the company managed to reduce this expense by 10% the following year.

f. Income taxes are 35% of pre-tax income in both years.

g. Retained earnings at 6/30/2010 was $265,080.

h. There were 10,000 shares which paid a $1.00 dividend per share in the 6/30/2011 year.

i. The following year, 1,000 more shares were issued and dividend of $1.50 was paid.

 

Posted Date: 4/2/2013 3:41:11 AM | Location : United States







Related Discussions:- Prepare income statement and analysis of retained earnings, Assignment Help, Ask Question on Prepare income statement and analysis of retained earnings, Get Answer, Expert's Help, Prepare income statement and analysis of retained earnings Discussions

Write discussion on Prepare income statement and analysis of retained earnings
Your posts are moderated
Related Questions
Q. Principles of banking and finance? An introduction to the principles of banking and finance. It covers a broad variety of topics using an economic perspective and aims to gi

Heather & Terry have a mortgage on their primary residence of $750,000 and a mortgage on their vacation home of $410,000. In 2013, they incurred $46,400 of mortgage interest expens

Q. What is Credit Analysis? Potential credit customers must be carefully screened using such methods as bank references, trade references, credit reports from credit reference

The following are the three-month HIBOR and three-year EFN futures prices for September 2010 contracts.   a Determine the HIBOR in three-months for settling the futures


Q. Explain In the Money and Out of the Money option? In the Money option - Option granted with an exercise price below market price on grant date Out of the Money option - O

Contribution and indemnity Generally the trustees are jointly and severally liable to the beneficiaries and a trustee sued may claim contribution from the others where although

what is the formulae for calculating Net income?

Dividends out of the capital profits Dividends out of the capital profits are apportioned on the same basis as dividends out of income (Re. Doughty). (a) Variation of sec

The costs that follow were extracted from the accounting records of various different manufacturers: 1.    Weekly wages of an equipment maintenance worker 2.    Marketing costs