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21
Sep
Income Statement
Categories: Business
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Use the following income statement from Prism orinting to perform a verticle analysis with sale as the base.

Income Statement
For the year ended September 30, 2011

Sales revenue $9,500
Cost of goods sold 2,780
Gross profit 6,720
Operating expense $0
Deprec. buildings&equip 250.00
Other seeling&administrative 1,000
Total expenses 1,250
Icome before interest&taxes 5,470
Interest expense 750
Interest before taxes 4,720
Income taxes 300
Net income 4,420
20
Sep
Your company, a medium-sized manufacturer of widgets
Categories: Business
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Your company, a medium-sized manufacturer of widgets, has just held the annual end of year “State of the Business” meeting for all employees. The president discussed how well the company has been doing, focusing on presenting the Income Statement for the last year. During the meeting, he used terms like product costs, and period costs, and how each affects the company’s profits. He also announced that going forward, instead of manufacturing just one standard type of widgets, there will be a new department added that will make custom versions of the firm’s normal product line.

At the end of the meeting, he asks each supervisor to prepare a memo to his or her own employees, describing in layman’s terms the following concepts:

A)
1. What are the differences between product and period costs?
2. Why is it important to properly distinguish one type of cost from the other?
3. Where on the firm’s income statement will period costs usually show up?
4. Where on the firm’s income statement would product costs end up?
5. The new department will make use of a job order costing system. How and why will this differ from the current process costing system used elsewhere in the plant?

B)
Provide 2 examples of companies that would use:
1. Job order costing
2. Process costing
20
Sep
Find two annual reports from competing publicly traded
Categories: Business
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Find two annual reports from competing publicly traded companies of your choice. Prepare an overview of the two companies including a brief synopsis of the industry the companies are in, the market share each company holds, and the length of time each company has been in business.
20
Sep
Company XYZ Balance Sheet
Categories: Business
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