The adjusted trial balance of Foster Products Company includedthe following balances for 12- 31-15,...

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Accounting

The adjusted trial balance of Foster Products Company includedthe following balances for 12- 31-15, which was the first year ofoperations
Accounts Payable $ 18000 -Credit
Accumulated Depreciation 35000 -Credit
Advertising Expense 17800 -Debit
Cash 7400 -Debit
Common Stock 3000 -Credit
Cost of Goods Sold 75800 -debit
Depreciation Expense 3000 -Debit
Dividends 2000 _debit
Equipment 81800 -Debit
InsuranceExpense 2800 -Debit
Interest Revenue 500 -Credit
Inventory 24000-Debit
Prepaid Insurance 3800 -Debit
Rent Expense 26000 -Debit
Retained Earnings 40000 -Credit
Salaries Expense 63000 -Debit
Sales 226600 -Credit
Sales Discounts 1000 Debit
Sales Returns and Allowances 5000 -Debit
Supplies 3700 -Debit
Supplies Expense 6000 Debit ________
Total debit 323100 Total Credit 323100
Rent expense and salaries expense are equally divided betweenselling activities and general and administrative activities.
1. Prepare a Multiple Step Income Statement for 12-31-15.(Categorize the Operating Expenses into Selling Expenses andGeneral/Administrative Expenses.
2. Calculate the Following Ratios AND provide a briefinterpretation about each one. a. Return on Assets b. Gross MarginRatio c. Profit Margin

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3.8 Ratings (462 Votes)

Income statement Particulars Amount Amount Revenue Sales 22660000 Less Sales returns and allowances 500000 Net sales 22160000 Less Cost of goods sold 7580000 Gross profit 14580000 Add Interest revenues 50000 A Revenue See Answer

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In: AccountingThe adjusted trial balance of Foster Products Company includedthe following balances for 12- 31-15, which...The adjusted trial balance of Foster Products Company includedthe following balances for 12- 31-15, which was the first year ofoperationsAccounts Payable $ 18000 -CreditAccumulated Depreciation 35000 -CreditAdvertising Expense 17800 -DebitCash 7400 -DebitCommon Stock 3000 -CreditCost of Goods Sold 75800 -debitDepreciation Expense 3000 -DebitDividends 2000 _debitEquipment 81800 -DebitInsuranceExpense 2800 -DebitInterest Revenue 500 -CreditInventory 24000-DebitPrepaid Insurance 3800 -DebitRent Expense 26000 -DebitRetained Earnings 40000 -CreditSalaries Expense 63000 -DebitSales 226600 -CreditSales Discounts 1000 DebitSales Returns and Allowances 5000 -DebitSupplies 3700 -DebitSupplies Expense 6000 Debit ________Total debit 323100 Total Credit 323100Rent expense and salaries expense are equally divided betweenselling activities and general and administrative activities.1. Prepare a Multiple Step Income Statement for 12-31-15.(Categorize the Operating Expenses into Selling Expenses andGeneral/Administrative Expenses.2. Calculate the Following Ratios AND provide a briefinterpretation about each one. a. Return on Assets b. Gross MarginRatio c. Profit Margin