S&R Rentals rents and services different types of yard-improvement equipment. In
ID: 2388189 • Letter: S
Question
S&R Rentals rents and services different types of yard-improvement equipment. Information about the company's financial performance is provided below:Average share outstanding= $15,000
Cost of goods sold = $44,000
Debt outstanding= $90,000
General and administrative expenses = 12,500
Income tax expense=5,300
Interest expense=8,800
Payments to owners=20,000
Rental revenue=41,000
Sales revenue=28,700
Selling expense=5,150
Service revenue=23,900
Please calculate and enter your answers for the following totals. You should show your calculations:
(a) Gross profit
(b) Operating expenses
(c) Operating income
(d) Pretax income
(e) Net income
(f) Earnings per share
Explanation / Answer
Sales
28,700
Cost of Good Sold
44 000
Gross Loss on Sales
15,300
Operating Expenses
General and Administrative Expenses
12500
Selling Expenses
5150
Service Expenses
23900
41550
Operating Loss
56880
Other Revenues and Gain
Rental Revenue
41000
Other Expenses
15850
Payment to owners
20000
Interest Expenses
8800
28800
Loss Before Income Tax
44650
Income Tax
5150
Net Loss
Loss per Share (49,800 / 15,000)
3.32
a. Gross profit
=15,300
b. Operating expenses
= 41,550
c. Operating income
=56,850)
d. Pretax income
=44,650
e. Net income
=49,800
f. Earnings per share
=3.32
Sales
28,700
Cost of Good Sold
44 000
Gross Loss on Sales
15,300
Operating Expenses
General and Administrative Expenses
12500
Selling Expenses
5150
Service Expenses
23900
41550
Operating Loss
56880
Other Revenues and Gain
Rental Revenue
41000
Other Expenses
15850
Payment to owners
20000
Interest Expenses
8800
28800
Loss Before Income Tax
44650
Income Tax
5150
Net Loss
Loss per Share (49,800 / 15,000)
3.32
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