2 . Other revenues consist of sales discounts $ 18,000 and rent revenue $ 4,000 .
3 . Selling expenses consist of salespersons ’ salaries $ 80,000 , depreciation on equipment $ 10,000 , advertising $ 13,000 , and sales commissions $ 6,000 . The commissions represent commissions paid . At December 21 , $ 3,000 of commissions have been earned by salespersons but have not been paid . All compensation should be recorded as Salaries and Wages Expense .
4 . Administrative expenses consist of office salaries $ 17,000 , dividends $ 18,000 , utilities $ 12,000 , interest expense $ 2,000 , and rent expense $ 24,000 , which includes prepayments totaling $ 6,000 for the first quarter of 2018 .
Prepare a detailed multi-step income statement with a brief explanation of 700 words . Assume a 25 % tax rate .
Show your work on the Excel ® spreadsheet and submit with your explanation .
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Purpose of Assignment
The purpose of this assignment is to evaluate the inventory section of two companies using basic comparative analysis , and to interpret the data to gain insight about the company ' s inventory management .
Assignment Steps
Resources : Financial Accounting : Tools for Business Decision Making
Write a 1,050-word comparative analysis using the financial statements of Amazon . com , Inc . presented in Appendix D , and the financial statements for Wal-Mart Stores , Inc ., presented in Appendix E , including the following :
● Compute these 2014 values for each company based on the information in the financial statements : Conclusions concerning the management of the inventory can you draw from this data .
○ Inventory turnover ( Use cost of sales and inventories )
○ Days of inventory
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