QUIZ - February 13, 2014

1. Using the Ledger balances of Drelix Enterprise, Prepare its Income statement
Cost of Sales of Product A
Cost of Sales of Product B
Cost of Sales of Services
Sales Revenue, Product A Sales Revenue, Product B Service revenue Product Returns -

220,790
195,733
275,000
550,000
335,700
476,000
-19,995

Interest Paid
Taxes paid.
General and Admin Expenses
Advertising Expense
Non- management Salaries
Research Expenses
Operations Expense

DRELIX ENTERPRISE
INCOME STATEMENT

Revenues from Sales

Sales Revenue, Product A Sales Revenue, Product B Service revenue Product Returns -

Total Sales Revenue

Cost of Sales
Cost of Sales of Product A
Cost of Sales of Product B
Cost of Sales of Services
Total Cost of Sales

Gross Profit (Loss)

550,000
335,700
476,000
-19,995
1,341,705
220,790
195,733
275,000
691,523
650,182

Operating Expenses
General and Admin Expenses
Advertising Expense
Non- management Salaries
Research Expenses
Operations Expense

Total Operating Expenses

Interest Paid

Income Before Taxes

Taxes Paid
Net Income

75,347
135,897
45,455
87,876
333,777
678,352
30,453
-58,623
30,453
-89,076

2. Complete the Given Income Statement using 32% as the rate of tax on income.
INCOME STATEMENT

30,453
123,987
75,347
135,897
45,455
87,876
333,777

Revenues from Sales

Product 1
product 2
Service Revenue
Returns
Total Sales Revenue
Cost of Sales
Gross Profit (Loss)

746,000
276,960
476,453
-32,567
1,466,846
567,843
899,003

Operating Expenses
General & Administrative
Sales & Marketing
Non- Management Salaries
Operations Expense
Total Operating Expenses
Income Before Taxes
Taxes Paid
Net Income

123,456
255,768
19,876
154,678
553,778
345,225
110,472
234,753

22. Calculate the simple interest and compound interest earned for each
of the investments using the information from the table.

Amount
invested
25,000
250,000
2,390,000
750,000
SIMPLE INTEREST
a. i=Prt
b.
c.
d.

interest
rate
2
3.5
7

compounding
period
annual
quarterly
monthly

Length of
investment
2 years
1 year
18 months

annually

3 years

25000 *.02*2
250,000*.035*1
2,390,000*.07*1.5
750,000*.05*3

112,500

1,000
8,750
250,950
112,500

COMPOUND INTEREST
a. FV = P (1+r/n)nt
i=FV-P

25,000 (1+.02)2
26,010-25,000

b. FV = P (1+r/n)nt
i=FV-P

250,000(1+.035/4)4
258,865-250,000

c. FV = P (1+r/n)nt
i=FV-P

2,390,000 (1+.07/12)18
2,390,000 -2,653,640.90

simple
interest
1,000
8,750
250,950

FV=26010
1,010
258,865.00
8,865.00
2,653,640.90
263,640.90

d. FV = P (1+r/n)nt
i=FV-P

750,000(1+.05/1)3
868,222.50 -750,000

868,222.50
118,222.50

compound
interest
1,010
8,865.00
263,641
118,223

Midterm. Feb 20, 2014

1. Using the Ledger balances of Drelix Enterprise, Prepare its Income statement
Cost of Sales of Product 1
Cost of Sales of Product 2
Cost of Sales of Product 3
Cost of Sales of Services
Sales Revenue, Product 1
Sales Revenue, Product 2
Sales Revenue of Product 3
Product Returns

144,876
285,123
254,222
195,000
855,343
755,999
398,213
-23,995

DRELIX ENTERPRISE
INCOME STATEMENT

Revenues from Sales

Sales Revenue, Product 1
Sales Revenue, Product 2
Sales Revenue of Product 3
Service revenue
Product Returns

Total Sales Revenue

Cost of Sales
Cost of Sales of Product 1
Cost of Sales of Product 2
Cost of Sales of Product 3
Total Cost of Sales

Gross Profit (Loss)

855,343
755,999
398,213
476,000
-23,995
2,461,560
144,876
285,123
254,222
684,221
1,777,339

Operating Expenses
General and Admin Expenses
Advertising Expense
Non- management Salaries
Research Expenses
Operations Expense

Total Operating Expenses

Interest Paid

Income Before Taxes

Taxes Paid
Net Income

77,843
299,358
65,488
97,976
313,767
854,432
33,453
889,454
143,958
745,496

Interest Paid
Taxes paid.
Service revenue
General and Admin Expenses
Advertising Expense
Non- management Salaries
Research Expenses
Operations Expense

33,453
143,958
556,005
77,843
299,358
65,488
97,976
313,767

2. Complete the Given Income Statement using 28% as the rate of tax on income.
INCOME STATEMENT

Revenues from Sales

Product A
product B
Service Revenue
Returns
Total Sales Revenue
Cost of Sales
Gross Profit (Loss)

999,435
678,433
376753
-29,587
2,025,034
877,924
1,147,110

Operating Expenses
General & Administrative
Sales & Marketing
Non- Management Salaries
Operations Expense
Total Operating Expenses
Income Before Taxes
Taxes Paid
Net Income

376753
2025034
1147110

103,576
235,778
17,986
124,577
481,917
665,193
186,254
478,939

481,917
665193
186,254
478939

235,778

22. Calculate the simple interest and compound interest earned for each
of the investments using the information from the table.

Amount
invested
77,000
350,000
2,380,000
350,000
SIMPLE INTEREST
a. i=Prt
b.
c.
d.

interest
rate
3
4.5
5

compounding
period
annual
quarterly
monthly

Length of
investment
3 years
2 years
18 months

annually

4 years

77000 *.03*3
350,000*.045*2
2,380,000*.05*1.5
350,000*.07*4

6,930
31,500
178,500
98,000

COMPOUND INTEREST
a. FV = P (1+r/n)nt
i=FV-P
b. FV = P (1+r/n)

nt

77,000 (1+.02)3
84139.98 - 77000
350,000(1+.045/4)8

84,139.98
7,140
382,768.62

simple
interest
6,930
31,500
178,500
98,000

i=FV-P

382768.62-350,000

c. FV = P (1+r/n)nt
i=FV-P

2,390,000 (1+.07/12)18
2,390,000 -2,653,640.90

d. FV = P (1+r/n)nt
i=FV-P

750,000(1+.05/1)3
868,222.50 -750,000

32,768.62
2,653,640.90
273,640.90
868,222.50
518,222.50

DRELIX ENTERPRISES
Income Statement

Revenues from Sales

Sales Revenue, Product 1
Sales Revenue, Product 2
Sales Revenue of Product 3
Service revenue
Product Returns

Total Sales Revenue

Cost of Sales
Cost of Sales of Product 1
Cost of Sales of Product 2
Cost of Sales of Product 3
Cost of Sales of Services
Total Cost of Sales

Gross Profit (Loss)

855,343
755,999
398,213
556,005
-23,995
2,541,565
144,876
285,123
254,222
195,000
879,221
1,662,344

Operating Expenses
General and Admin Expenses
Advertising Expense
Non- management Salaries
Research Expenses
Operations Expense

Total Operating Expenses

Interest Paid

Income Before Taxes

Taxes Paid
Net Income

77,843
299,358
65,488
97,976
313,767
854,432
33,453
774,459
143,958
630,501

compound
interest
7,140
32,768.62
273,641
518,223

0.004166667