Jill\'s Cleaning Service had net sales of $435,000 operating expenses of $124,00
ID: 3120792 • Letter: J
Question
Jill's Cleaning Service had net sales of $435,000 operating expenses of $124,000taxes of $21,750 and a cost of goods sold of $63,000
(a) $372,000 (b) $248,000 (c)$226,250
(a) $61,000 (b) $248,000 (c)$226,250
(a) $61,000 (b) $372,000 (c)$350,250
(a) $311,000 (b) $248,000 (c)$226,250
16. Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes.
MidState Machinery has a cost of goods sold of $105,000 operating expenses of $47,000 taxes of $10,500 and net sales of $237,000.
(a) $58,000 (b) $132,000 (c)$121,500
(a) $58,000 (b) $85,000 (c)$74,500
(a) $132,000 (b) $85,000 (c)$74,500
(a) $190,000 (b) $85,000 (c)$74,500
17. Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar.
Find the book value at the end of 7 years.
Cost: $2920
Estimated life: 10 years
Estimated scrap value: $146
$978
$2643
$876
$1942
18. Solve the problem.
A printing press cost $11,000 and has an estimated life of 9 years and a scrap value of $550. Find the total depreciation at the end of 7 years using the straight-line method. Round to nearest dollar.
$9839
$2444
$2872
$8128
19. Find the annual double-declining-balance (200% method) rate of depreciation.
5 years
10%
50%
20%
40%
20. Find the annual straight-line rate of depreciation for the estimated life.
7 years
1.4%
7%
14.3%
7.1%
7. Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes.
Jill's Cleaning Service had net sales of $435,000 operating expenses of $124,000taxes of $21,750 and a cost of goods sold of $63,000
(a) $372,000 (b) $248,000 (c)$226,250
(a) $61,000 (b) $248,000 (c)$226,250
(a) $61,000 (b) $372,000 (c)$350,250
(a) $311,000 (b) $248,000 (c)$226,250
16. Find (a) the gross profit, (b) the net income before taxes, and (c) the net income after taxes.
MidState Machinery has a cost of goods sold of $105,000 operating expenses of $47,000 taxes of $10,500 and net sales of $237,000.
(a) $58,000 (b) $132,000 (c)$121,500
(a) $58,000 (b) $85,000 (c)$74,500
(a) $132,000 (b) $85,000 (c)$74,500
(a) $190,000 (b) $85,000 (c)$74,500
17. Find the book value after the given number of years, using the straight-line method. Round your answer to the nearest dollar.
Find the book value at the end of 7 years.
Cost: $2920
Estimated life: 10 years
Estimated scrap value: $146
$978
$2643
$876
$1942
18. Solve the problem.
A printing press cost $11,000 and has an estimated life of 9 years and a scrap value of $550. Find the total depreciation at the end of 7 years using the straight-line method. Round to nearest dollar.
$9839
$2444
$2872
$8128
19. Find the annual double-declining-balance (200% method) rate of depreciation.
5 years
10%
50%
20%
40%
20. Find the annual straight-line rate of depreciation for the estimated life.
7 years
1.4%
7%
14.3%
7.1%
Explanation / Answer
15)
Sales = 435,000
Operating Expenses= 124,000
Taxes= 21,750
Cost of goods sold = 63,000
Gross Profit = Sales - COGS (cost of goods sold) = 435000- 63000 = 372,000
Net profit before taxes = Gross Profit - operating expenses = 372000 - 124000 = 248000
Net Profit after taxes = profit before tax-tax= 248000-21750 = 226250
Hence 15th answer is the first option
16)
COGS = 105000
Operating expenses = 47000
taxes = 10500
Sales = 237000
Gross profit = sales - cogs = 237000-105000 = 132000
Net profit before taxes = gross profit - operating expenses = 132000-47000 = 85000
Net profit after taxes = profit before taxes - taxes = 85000-10500 = 74500
Thus, the answer is the third choice.
17) 2920 is the current value; 10 years is the useful life; scrap vale is 146;
So by straight line, each year the depreciation will be equal which is = 2920-146 /10 = 277.4$
Now after 7 years the value will be = 2920 - 7*277.4= 978.2~= 978$
hence the answer is first choice
18) current value = 11000; useful life = 9 years; scrap value = 550;
by straight line its yearly equal depreciation will be = 11000-550 / 9 = 1161.11
After 7 years the value = 11000- 7*1161.11 = 2872.23~= 2872
Hence the answer is third answer choice
19) for 5 years of life, annual depreciation by straight line = 1/5 *100% = 20% ; by double declining method this becomes = 2*20% = 40% hence answer is fourth choice
20) for 5 years, straight line depreciation = 1/7*100 = 100/7 = 14.285 ~=14.3%
Hence answer is third choice
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