Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.Pretax income?Gross profit?Allocated costs (uncontrollable)$2,030Labor expense41,570Sales188,000Research and development (uncontrollable)310Depreciation expense17,000Net income/(loss)?Cost of goods sold118,440Selling expense1,260Total expenses?Marketing costs (uncontrollable)790Administrative expense700Income tax expense (21% of pretax income)?Other expenses310 B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place.Profit marginfill in the blank b354eefc7f83060_1%Return on investmentfill in the blank b354eefc7f83060_2%Residual income$fill in the blank b354eefc7f83060_3 A. Prepare the income statement using the above information. Round your answers to the nearest dollar.BDS EnterprisesIncome StatementFor the Year Ended Dec. 31,20хxTotal ExpensesGross Profit

Income Statement Profit margin, return on investment, and residual income

Answered: Financial information for BDS…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 9EB: Prepare an income statement using the following information for CK Company for the month of February...

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Question

Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.

Pretax income	?
Gross profit	?
Allocated costs (uncontrollable)	$2,030
Labor expense	41,570
Sales	188,000
Research and development (uncontrollable)	310
Depreciation expense	17,000
Net income/(loss)	?
Cost of goods sold	118,440
Selling expense	1,260
Total expenses	?
Marketing costs (uncontrollable)	790
Administrative expense	700
Income tax expense (21% of pretax income)	?
Other expenses	310

B. Calculate the profit margin, return on investment, and residual income. Assume an investment base of $100,000 and 6% cost of capital. Round your percentage answers to one decimal place.

Profit margin	fill in the blank b354eefc7f83060_1	%
Return on investment	fill in the blank b354eefc7f83060_2	%
Residual income	$fill in the blank b354eefc7f83060_3