quiz finance feb 13

7/27/2019 QUIZ Finance Feb 13

1/10

QUIZ - February 13, 2014

1. Using the Ledger balances of Drelix Enterprise, Prepare its Income statement

Cost of Sales of Product A 220,790 Interest Paid 30,453

Cost of Sales of Product B 195,733 Taxes paid. 123,987Cost of Sales of Services 275,000 General and Admin Exp 75,347

Sales Revenue, Product A - 550,000 Advertising Expense 135,897

Sales Revenue, Product B - 335,700 Non- management Sala 45,455

Service revenue - 476,000 Research Expenses 87,876

Product Returns - -19,995 Operations Expense 333,777

Revenues from Sales

Sales Revenue, Product A - 550,000

Sales Revenue, Product B - 335,700

Service revenue - 476,000

Product Returns - -19,995

Total Sales Revenue 1,341,705

Cost of Sales

Cost of Sales of Product A 220,790

Cost of Sales of Product B 195,733

Cost of Sales of Services 275,000

Total Cost of Sales 691,523

Gross Profit (Loss) 650,182

Operating Expenses

General and Admin Expenses 75,347

Advertising Expense 135,897

Non- management Salaries 45,455

Research Expenses 87,876

Operations Expense 333,777

Total Operating Expenses 678,352

Interest Paid 30,453

Income Before Taxes -58,623

Taxes Paid 30,453

Net Income -89,076

2. Complete the Given Income Statement using 32% as the rate of tax on income.

DRELIX ENTERPRISE

INCOME STATEMENT

INCOME STATEMENT


2/10

Revenues from Sales

Product 1 746,000

product 2 276,960

Service Revenue 476,453

Returns -32,567


Cost of Sales 567,843Gross Profit (Loss) 899,003

Operating Expenses

General & Administrative 123,456

Sales & Marketing 255,768

Non- Management Salaries 19,876



Income Before Taxes 345,225

Taxes Paid 110,472Net Income 234,753

22. Calculate the simple interest and compound interest earned for each

of the investments using the information from the table.

Amount interest ompounding Length of simple

invested rate period investment interest

25,000 2 annual 2 years 1,000

250,000 3.5 quarterly 1 year 8,7502,390,000 7 monthly 18 months 250,950

750,000 5 annually 3 years 112,500

SIMPLE INTEREST

a. i=Prt 25000 *.02*2 1,000

b. 250,000*.035* 8,750

c. 2,390,000*.07* 250,950

d. 750,000*.05*3 112,500

COMPOUND INTEREST

a. FV = P (1+r/n)nt

25,000 (1+.02)2

FV=26010

i=FV-P 26,010-25,000 1,010

b. FV = P (1+r/n)nt

250,000(1+.035/4)4

258,865.00

i=FV-P 258,865-250,000 8,865.00

c. FV = P (1+r/n)nt

2,390,000 (1+.07/12)18

2,653,640.90

i=FV-P 2,390,000 -2,653,640.90 263,640.90


3/10

d. FV = P (1+r/n)nt

750,000(1+.05/1)3

868,222.50

i=FV-P 868,222.50 -750,000 118,222.50


4/10


5/10

compound

interest

1,010

8,865.00263,641

118,223


6/10

Midterm. Feb 20, 2014

1. Using the Ledger balances of Drelix Enterprise, Prepare its Income statement

Cost of Sales of Product 1 144,876 Interest Paid 33,453Cost of Sales of Product 2 285,123 Taxes paid. 143,958

Cost of Sales of Product 3 254,222 Service revenue 556,005

Cost of Sales of Services 195,000 General and Admin Exp 77,843

Sales Revenue, Product 1 855,343 Advertising Expense 299,358

Sales Revenue, Product 2 755,999 Non- management Sala 65,488

Sales Revenue of Product 3 398,213 Research Expenses 97,976

Product Returns -23,995 Operations Expense 313,767

Revenues from Sales

Sales Revenue, Product 1 855,343


Sales Revenue of Product 3 398,213

Service revenue 476,000

Product Returns -23,995


Cost of Sales

Cost of Sales of Product 1 144,876




Gross Profit (Loss) 1,777,339

Operating Expenses




Research Expenses 97,976Operations Expense 313,767




Taxes Paid 143,958

Net Income 745,496

DRELIX ENTERPRISE

INCOME STATEMENT


7/10

2. Complete the Given Income Statement using 28% as the rate of tax on income.

Revenues from Sales

Product A 999,435

product B 678,433Service Revenue 376753 376753

Returns -29,587

Total Sales Revenue 2,025,034 2025034

Cost of Sales 877,924

Gross Profit (Loss) 1,147,110 1147110

Operating Expenses

General & Administrative 103,576

Sales & Marketing 235,778

Non- Management Salaries 17,986Operations Expense 124,577

Total Operating Expenses 481,917 481,917 235,778

Income Before Taxes 665,193 665193

Taxes Paid 186,254 186,254

Net Income 478,939 478939

22. Calculate the simple interest and compound interest earned for each

of the investments using the information from the table.

Amount interest ompounding Length of simple

invested rate period investment interest

77,000 3 annual 3 years 6,930

350,000 4.5 quarterly 2 years 31,500

2,380,000 5 monthly 18 months 178,500

350,000 7 annually 4 years 98,000

SIMPLE INTEREST

a. i=Prt 77000 *.03*3 6,930

b. 350,000*.045*2 31,500

c. 2,380,000*.05*1.5 178,500

d. 350,000*.07*4 98,000

COMPOUND INTEREST

a. FV = P (1+r/n)nt

77,000 (1+.02)3 84,139.98

i=FV-P 84139.98 - 77000 7,140

b. FV = P (1+r/n)nt

350,000(1+.045/4)8

382,768.62

INCOME STATEMENT


8/10

i=FV-P 382768.62-350,000 32,768.62

c. FV = P (1+r/n)nt

2,390,000 (1+.07/12)18

2,653,640.90

i=FV-P 2,390,000 -2,653,640.90 273,640.90

d. FV = P (1+r/n)nt

750,000(1+.05/1)3

868,222.50

i=FV-P 868,222.50 -750,000 518,222.50


9/10

Revenues from Sales



Sales Revenue of Product 3 398,213Service revenue 556,005

Product Returns -23,995


Cost of Sales




Cost of Sales of Services 195,000


Gross Profit (Loss) 1,662,344

Operating Expenses




Research Expenses 97,976





Taxes Paid 143,958Net Income 630,501

DRELIX ENTERPRISES

Income Statement


10/10

compound

interest

7,140

32,768.62

273,641

518,223

0.004166667

quiz finance feb 13

Documents