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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