财务会计英语 Unit 8 Financial Statements教材课程.pptVIP

Financial Statements;Contents;Section 1Review of Transactions and Summary of Account Balances forWhitman Company;Section 1Review of Transactions and Summary of Account Balances forWhitman Company;Section 2Balance Sheet; 2. Cost of goods sold is calculated and shown in the following way: Beginning Inventory 0 Purchases 945,600 Less: Purchase returns 2,600 943,000 Cost available for sale 943,000 Less: Inventory 275,000 Cost of goods sold 668,000 With cost of goods sold shown, gross margin, $773,000, is easily made out.; 3. Selling expenses include the expenses of displaying, advertising, delivering merchandise and salaries for making sales. 4. General and administrative expenses give support to the overall operations of a company, including expenses related to accounting, human resource management, and financial management.; 5. After operating income, $422,312, is obtained, other revenues and expenses such as dividend revenue, interest expense, gain or loss on sale of assets, etc. are then to be calculated. 6. For Whitman Company the income tax rate is 30%. The income tax is calculated as: Income before tax × Tax rate=Income tax on operations, i.e. $404,912×30%=$121,473.6. ; 7. After all these calculations, the net income, $283,438.4, is then obtained. But this is not the end of the calculating process. Companies also report earnings per share (EPS) that shows the relationship between net income and the number of shares of stock outstanding. 8. The net income of $283,438.4 is the link between the income statement and the balance sheet.;Exercises;8.4 During a certain accounting period McGee Company has the following balances relating to accounts receivable beginning balance $20,000, collections $50