A Partial Income Statement for a Company's Most Recent Fiscal

question 45

Essay

A partial income statement for a company's most recent fiscal year follows: $\begin{array} { | l | l | } \hline \text { Sales } & \$ 800,000 \\\hline \text { Inventory, January 1 } & \$ 420,000 \\\hline \text { Add purchases } & ( \mathrm { a } )\underline{\quad\quad} \\\hline \text { Goods available for sale } & \text { (b) } \underline{\quad\quad} \\\hline \text { Inventory, December } 31 & 470,000 \\\hline \text { Cost of goods sold } & \text { (c) }\underline{\quad\quad} \\\hline \text { Gross margin } & 250,000 \\\hline \text { Deduct expenses: } & \\\hline \text { Selling } & \text { (d) }\underline{\quad\quad} \\\hline \text { Administrative } & \text { (e) } \underline{\quad\quad}\\\hline \text { Income before taxes } & \text { (f) }\underline{\quad\quad} \\\hline \text { Income taxes } & \text { (g) } \underline{\quad\quad}\\\hline \text { Net income } & \text { (h) }\underline{\quad\quad} \\\hline \text { Earnings per share } ( 5,000 \text { shares outstanding) } & \$ 4.20 \\\hline\end{array}$ Additional data:
Selling expenses are 20 percent of sales, administrative expenses are 10 percent of cost of goods sold; the income tax rate is 40 percent.
Required:
Supply dollar amounts for blanks a through h.

---

Definitions:

Performance Contracts

Agreements that outline the expected outcomes or results from individuals or entities, often tied to rewards or penalties based on achievement.

Readiness To Learn

Refers to the degree to which an individual is prepared or inclined to acquire new knowledge, skills, or behaviors.

Perceptions

The process of interpreting, selecting, and organizing sensory information to understand the environment and interactions.

Work Environment Support

The degree to which an organization provides the physical, emotional, and informational resources necessary for employees to perform their jobs effectively.