MGMT 3320 Lecture Notes - Lecture 3: Retained Earnings, Income Statement, Balance Sheet
19 Sep 2016
School
Department
Course
Professor
Document Summary
Income statement (use in case), balance sheet, statement of retained earnings, and statement of cash flows all important. Income statement- measures profitability for a time period, uses revenues and expenses. The aztec book company sold 1,400 finance textbooks to high tuition college for each in 2015. In addition, aztec books spent ,000 (selling expense) to persuade the college to buy its books. Aztec books borrowed ,000 on january 1, 2015, on which it paid 10 percent interest. Both interest and principal were paid on december 31, 2015. Verify your answer with an income statement presented in good form. Carr auto wholesalers had sales of ,000 in 2015, and cost of goods sold represented 65 percent of sales. Selling and administrative expenses were 9 percent of sales. Amortization expense was ,000, and interest expense for the year was ,000. The firm"s tax rate is 30 percent: compute earnings after taxes using percentage-of-sales method, assume the firm hires ms.
