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







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