会计学学习资料：07第7章答案.docVIP

SOLUTIONS TO CH7 EXERCISE 7-5 Net sales$696,000 Cost of goods sold 409,200 Gross profit286,800 Selling expense98,600 Administrative expense116,000 Income from operations72,200 Other revenues and gains17,500 Other expenses and losses34,700 Income before income taxes55,000 Income tax expense16,500 Net income$38,500  Net income÷Number of Common Shares Outstanding=Earnings per Share$38,50010,000=$3.85 EXERCISE 7-6 (a) Wilkinson CorporationIncome StatementFor the Year Ended December 31, 2006RevenuesNet sales$2,156,900 Interest revenue300,000 Gain on sale of equipment80,000  Total revenues2,536,900 Expenses Cost of goods sold $1,499,900  Selling and administrative expenses340,750  Interest expense90,000  Income tax expense150,000  Total expense2,080,650 Net income$456,250  (b) Wilkinson CorporationIncome StatementFor the Year Ended December 31, 2006Net sales$2,156,900 Cost of goods sold 1,499,900 Gross profit657,000 Selling and administrative expenses340,750 Income from operations316,250 Other revenues and gains380,000 Other expenses and losses90,000 Income before income taxes606,250 Income tax expense150,000 Net income$456,250  (c) Net income÷Net Sales=Profit Margin Percentage$456,250$2,156,900=21.15% EXERCISE 7-7 (a) CompanyTotal Assets-Total Common Equity=Total DebtIntel Corporation$47,143-$37,846=$9,297Johnson Johnson$48,263-$26,869=$21,394Motorola, Inc.$32,098-$12,689=$19,409Total Debt÷Total Assets=Debt to Total Assets RatioIntel Corporation$9,297÷$47,143=19.72%Johnson Johnson$21,394÷$48,263=44.33%Motorola, Inc.$19,409÷$32,098=60.47%Net income÷Net Sales=Return on SalesIntel Corporation$5,641÷$30,141=18.72%Johnson Johnson$7,197÷$41,862=17.19%Motorola, Inc.$893÷$27,058=3.30%Net