FINANCE HOME WORK 50

Enter the appropriate numbers/formulas in the blue-shaded cells. 														
	The word “Wrong” will appear to the left of incorrect entries. 														
	Hint: Complete supporting computations as needed to plug in determined amounts into income statement.														
															
	Supporting computations for the income statement below:														
	(a)	Cash collections													
		Accounts receivable, December 31, 2014													
		Accounts receivable, December 31, 2015													
		Sales													
															
	(b)	Cash payments													
		Accounts payable, December 31, 2014													
		Accounts payable, December 31, 2015													
		Cash general and administrative expenses*													
		Selling expenses													
		Wages and salaries payable, December 31, 2014													
		Purchases													
															
	*	Total general and administrative expenses													
		Less depreciation on store equipment													
		Cash general and administrative expenses													
															
	(c)	Selling expense													
		Divided by % of gross profit													
		Gross profit													
															
	(d)	Sales (a)													
		Gross profit (c)													
		Cost of goods sold													
		Beginning inventory													
		Purchases (b)													
		Ending inventory													
															
	(e)	Sales													
		Multiplied by % of sales													
		General and administrative expenses													
															
	(f)	Income before income taxes (see income statement)													
		Multiplied by income tax rate													
		Income taxes													
															
	(g)	General and administrative expenses													
		Multiplied by % of general and admin. expenses													
		Depreciation													
															
															
	SAYER SPORTING GOODS														
	Income Statement														
	For the Year Ended December 31, 2015														
	Sales								(a)						
	Cost of goods sold:														
		Beginning inventory		 $12,180 											
		Purchases			(b)										
		Goods available for sale													
		Less: Ending inventory					(d)								
		Cost of goods sold													
	Gross profit 								(c)						
	Operating expenses:														
		Selling expenses				 $12,352 									
		General and administrative expenses													
		Total operating expenses													
	Income from operations before taxes														
	Income taxes								(f)						
	Net income														
															
	Earnings per share