just need the 700 words

SIMON COMPANY Income StatementFor the Year Ended December 31, 2017 Revenues Net sales $850,000 Other revenues 22,000 872,000 Cost of goods sold 555,000 Gross profit 317,000 Operating expenses Selling expenses 109,000 Administrative expenses 103,000 212,000 Net earnings $105,000 As an experienced, knowledgeable accountant, you review the statement and determine the following facts: The $850,000 of Net sales on his statement consisted of: sales $911,000, less freight-out on merchandise sold $33,000, and sales returns and allowances $28,000. (Consider whether all of these items belong in the Net Sales calculation) The $22,000 of Other revenues on his statement consisted of sales discounts $18,000 and rent revenue $4,000. (Consider whether the Other Revenues section is listed in the right place on this income statement and should any of these items listed as other be included in Net Sales?) Cost of goods sold was $555,000. The $109,000 of Selling expenses on his statement consisted of salespersons’ salaries $80,000, depreciation on equipment $10,000, advertising $13,000, and sales commissions paid of $6,000. However, as of December 21, an additional $3,000 of commissions have been earned by salespersons but have not been paid. (Consider how an item is treated in accrual accounting when it is earned and not paid). The $103,000 of Administrative expenses consist of office salaries $47,000, utilities $12,000, and rent expense $24,000 ($6000 of the rent expense was prepaid for the first quarter of 2018.) As well as $18,000 of dividends paid and $2000 of interest expense. (Consider both your prepaid item here as well as whether these items all belong in the administrative expense section). Assume a 25% tax rate. (Consider 25% of what number and where the expense for this belongs on the statement). NOTE: Salesperson salaries, office salaries, and commissions are all considered “Salaries and Wages”. NOTE the formula for the multi-step income statement that the accountant should have used to prepare the statement: Sales Revenue – Contra Revenues = Net Sales – COGS = Gross Profit – Operating Expenses = Income from Operations /- Other revenues and/or expenses = Earnings Before Income Tax – Income tax expense = Net income Prepare a corrected detailed multi-step income statement using the Week 3 Excel Spreadsheet provided in the Student Materials. Prepare a brief explanation of at least 700 words describing the parts of the multi-step income statement utilizing data from the Excel spreadsheet you prepared to provide examples.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more