Module Three - Assignment 3.3.2 | Download for quality grades

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The following questions relate to XYZ Retail Income Statement 1. Sales revenue earned from the sale of products is $ 78,935. COGS is $ 39,675 BOTH FOR THE 2017 YEAR 2. XYZ’s income tax provision ... rate is 24 %. 3. Income statement accounts are listed in order of operating, investing, and financing activities. 4. If XYZ purchases 10 widgets for $215 and sells them for $460 each to customers; how much is reported as sales? How much is reported as cost of goods sold? Gross profit? (Reported sales - $4600) - (COGS - $ 2150) = Gross P. - $ 2450 5. Using Accrual Accounting, if XYZ processes payroll on September 1 for an August 31 payroll, what month is the payroll recorded as an expense? AUGUST 6. Calculate the Return on Sales ratio for 2017. Does the ratio indicate a higher or lower profitability? $14,511/ $78,935 = 0.1838 = 18% 7. Calculate the Gross Profit Margin for 2017. $ 39260/ $ 78935= 0.49 = 49% 8. What would be a reason for gross profit to be greater in 2015 than in 2014 when sales revenue is less? It could be a result markup on sales were higher in 2015 than 2014 even if COGS was the same price. Selling the product for more money would result in higher profit from lesser product sold. 9. What accounts are included in total operating expenses? 1. Research and development expense 2. Selling, general and administrative expenses 2. Depreciation and amortization expense 4. Other operating expenses [Show More]

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