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  • Exercise 2 Wordon Corporation

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    Sudhir Aggarwal
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    The income statement for March 31, 2019 shows total sales of $850,000 with cost of goods sold of $450,000, resulting in a gross profit of $400,000. After deducting $60,000 each for R&D expenses, sales and distribution expenses, and administration and general expenses, the company reported operating income of $340,000 and earnings before interest and taxes of $320,000 after deducting $20,000 for depreciation. The company's earnings before taxes were $310,000 after paying $10,000 in interest, and its net income was $270,000 after paying taxes of $40,000.

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    WORDON CASE STUDY OF CASH FLOW STATEMENT

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    The income statement for March 31, 2019 shows total sales of $850,000 with cost of goods sold of $450,000, resulting in a gross profit of $400,000. After deducting $60,000 each for R&D expenses, sales and distribution expenses, and administration and general expenses, the company reported operating income of $340,000 and earnings before interest and taxes of $320,000 after deducting $20,000 for depreciation. The company's earnings before taxes were $310,000 after paying $10,000 in interest, and its net income was $270,000 after paying taxes of $40,000.

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    © All Rights Reserved
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    11 views2 pages

    Exercise 2 Wordon Corporation

    Uploaded by

    Sudhir Aggarwal
    The income statement for March 31, 2019 shows total sales of $850,000 with cost of goods sold of $450,000, resulting in a gross profit of $400,000. After deducting $60,000 each for R&D expenses, sales and distribution expenses, and administration and general expenses, the company reported operating income of $340,000 and earnings before interest and taxes of $320,000 after deducting $20,000 for depreciation. The company's earnings before taxes were $310,000 after paying $10,000 in interest, and its net income was $270,000 after paying taxes of $40,000.

    Copyright:

    © All Rights Reserved
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    of 2

    INCOME STATEMENT

    FOR MARCH 31,2019

    SALES 850000
    COST OF GOOD SOLD -450000
    GROSS PROFIT 400000
    LESS
    R&D EXPENCES 60000
    SALES AND DISTRIBUTION EXPANCES
    ADMINISTRATION AND GENERAL EXPENCES -60000
    OPERATING INCOME(EBDIT) 340000
    LESS DEPRICIATION -20000
    EBIT 320000
    INTEREST -10000
    EBT 310000
    TAX -40000
    EAT/PAT 270000
    INCOME STATEMENT

    47.05%

    31.76%

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