Downhill Inc. sells, rents, and services ski equipment.Information about the com
ID: 2458126 • Letter: D
Question
Downhill Inc. sells, rents, and services ski equipment.Information about the company’s financial performance for arecent fiscal period is provided below.
Average sharesoutstanding 20,000
Cost of goodssold 36,000
Debtoutstanding 65,000
General and administrationexpenses 12,000
Income taxexpense 20,000
Interestexpense 7,500
Payments toowners 30,000
RentalRevenue 50,000
SalesRevenue 81,000
Sellingexpense 28,000
Servicerevenue 23,000
From the information provided, compute the following amounts forthe period:
a. Goss profit
b. Operating expenses
c. Income from operations
d. Pretax income
e. Net income
f. Earnings pershare
Explanation / Answer
500 /20000
a GrossProfit Sales Revenue 81,000.00 Service Revenue 23,000.00 104,000.00 Cost of Goods Sold (36,000.00) Gross Profit 68,000.00 b Operating expenses General & Administration expenses 12,000.00 Selling Expense 28,000.00 40,000.00 c Income fromoperations 28,000.00 d Pretax Income Interest expense 7,500.00 PreTax Income 20,500.00 e Net Income Income Tax Expense 20,000.00 Net Income 500.00 f Earnings Per Share Average Shares outstanding 20,000.00 Earnings per Share500 /20000
Earnings per Share 0.025Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.