HIHI~ I have two short questions that I don’t know how to explain, can somebody give me a helpful hand^^~
1.”Bank statement and bank columns of the cash book both record the cash paid in and out of the business bank account, so they shold have the same balance.” Comment.
2. A Manager suggested that full cost of the mahinery should be charged against Profit and Loss account in the year of purchase rather than by months. Do you agree?
I want to know how can I calculate profit of the year, without preparing a Profit and loss account(income statement)?
Actually I have the companies Trial balance of the year, using them what can I do??
I’ve asked some questions and I found out that if I prepare my Balance sheet correctly I can find out that the difference between the assets and Liabilities+capital is retained profit
QUESTION FOUR
Kelstar produce a standard mailbox and sells it to large retail outlets. Kelstar expects to sell 75,000 mail boxes in the coming year. Its projected income statement for the coming year is:
$
Sales 2,625,000
Less: Variable costs 1,181,250
Contribution Margin 1,443,750
Less: Fixed costs 1,043,750
Operating Profit 400,000
(d) After much market research and requests from retailers Kelstar has decided to introduce a new type of mailbox (deluxe). This new mailbox is sleeker in design and targeted to wealthier clients. Fixed costs are expected to increase to $1,100,000. Kelstar expect the deluxe mailbox to account for 25% of their total sales. Kelstar expects to sell 100,000 mailboxes in total if it introduces the deluxe model. Management has provided the following additional information:
Deluxe
Selling Price per unit $55.00
Variable cost per unit $24.75
In light of the above information and the new sales mix how many mailboxes must be sold in order for Kelstar to break even? Your answer must include total sales and a breakdown on standard and deluxe mailboxes.
Are Net Sales & Gross Profit the same?
How do I calculate them?
Specifically Disney 2005 !
It says:
Revenues
Costs & Expenses
Gain on sale of businesses and restructuring and impairment charges
Net Interest Expense
Equity in the income of investors
_______________________
Income before income Taxes
Income Taxes
Minority Interests
_____________
Income before effect of accounting changes
Effects of accounting Changes
______________________
Net Income