1,001 Accounting Practice Problems For Dummies by Kenneth Boyd

Author:Kenneth Boyd
Language: eng
Format: epub
ISBN: 9781118853221
Publisher: Wiley
Published: 2015-02-24T00:00:00+00:00

70. $6,000,000

Gross margin is equal to the difference between sales revenue and cost of goods sold.

71. $1,350,000

You calculate selling, general, and administrative expenses as the difference between gross margin and operating earnings.

72. $230,000

Interest expense is presented on the income statement after operating earnings and before earnings before income taxes. Thus, you calculate it as the difference between operating income and earnings before income taxes.

In this case, you need to take operating earnings of $650,000 less earnings before income tax of $420,000, which equals $230,000.

73. balance sheet, income statement, and statement of cash flows

The three primary financial statements are balance sheet, income statement, and the statement of cash flows.

74. statement of financial position

A balance sheet can also be called a statement of financial position.

75. balance sheet

The balance sheet shows the assets, liabilities, and equity of a company at a point in time.

76. $275,000

Assets include cash, amounts owed by customers (accounts receivable), and cost of unsold product (inventory).

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