Chapter 5 Communicating and Interpreting Accounting Information 1 Campbell Soup Company is the world s leading maker and marketer of soup and sells other well known brands of food in 120 countries Presented here are the items listed on its recent balance sheet dollars in millions presented in alphabetical order CAMPBELL SOUP COMPANY Consolidated Balance Sheet July 31 Current Year in millions Assets Current Assets Total assets Current liabilities Liabilities and Stockholders Equity Total liabilities Total stockholders equity Total liabilities and stockholders equity 2 Aeropostale Inc is a mall based specialty retailer of casual apparel and accessories The company concept is to provide the customer with a focused selection of high quality active oriented fashions at compelling values The items reported on its income statement for a recent year ended March 31 are presented here dollars in thousands in alphabetical order Prepare a multiple step consolidated income statement with a presentation of basic earnings per share AEROPOSTALE INC Consolidated Statement of Income For the year ended March 31 current year What is the gross profit percentage Round your answer to nearest whole percent 2 Jordan Sales Company organized as a corporation on April 1 2014 has completed the accounting cycle for the second year ended March 31 2016 Jordan also has completed a correct trial balance as follows 2 Prepare a classified multiple step income statement for the reporting year ended March 31 2016 Include income tax expense assuming a 25 percent tax rate Round your Earnings per share to 2 decimal places JORDAN SALES CO Income Statement For the year ended March 31 2016 Classified balance sheet at the end of the reporting year March 31 2016 Include 1 income taxes for the current year in Income Taxes payable and 2 dividends in Retained earnings Amounts to be deducted should be indicated by a minus sign Campbell Soup Company Consolidated Balance Sheet July 31 current year Chapter 5 Communicating and Interpreting Accounting Information 1 Campbell Soup Company is the world s leading maker and marketer of soup and sells other well known brands of food in 120 countries Presented here are the items listed on its recent balance sheet dollars in millions presented in alphabetical order CAMPBELL SOUP COMPANY Consolidated Balance Sheet July 31 Current Year in millions Assets Current Assets Cash and cash equivalents Accounts receivable Inventories Other current assets Total current assets Other assets Intangible assets Property plant and equipment net Total assets Current liabilities Accounts payable Other current debt Accrued expenses Total current liabilities Other noncurrent liabilities Total liabilities Stockholders Equity Common stock Retained earnings Total stockholders equity Total liabilities and stockholders equity Liabilities and Stockholders Equity 484 560 767 152 1 963 136 2 660 2 103 6 862 585 785 619 1 989 3 777 5 766 351 745 1 096 6 862 2 Aeropostale Inc is a mall based specialty retailer of casual apparel and accessories The company concept is to provide the customer with a focused selection of high quality active oriented fashions at compelling values The items reported on its income statement for a recent year ended March 31 are presented here dollars in thousands in alphabetical order Prepare a multiple step consolidated income statement with a presentation of basic earnings per share AEROPOSTALE INC Consolidated Statement of Income For the year ended March 31 current year Net revenues Cost of goods sold Gross profit Other selling general and administration expenses Total operating expenses Operating income Interest expense Income before income taxes Provision for income taxes Net income Earnings per share Basic earnings per share Weighted average shares outstanding 2 342 260 1 733 916 608 344 494 829 494 829 113 515 417 113 098 43 583 69 515 0 86 81 208 What is the gross profit percentage Round your answer to nearest whole percent 26 Gross profit percentage Gross profit Net sales 608 344 2 342 260 0 260 26 3 Jordan Sales Company organized as a corporation on April 1 2014 has completed the accounting cycle for the second year ended March 31 2016 Jordan also has completed a correct trial balance as follows Classified multiple step income statement for the reporting year ended March 31 2016 Include income tax expense assuming a 25 percent tax rate Round your Earnings per share to 2 decimal places JORDAN SALES COMPANY Income Statement For the Year Ended March 31 2016 Sales revenue Cost of goods sold 99 000 33 000 Gross profit Operating expenses Operating expenses Depreciation expense Total operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income Earnings per share 19 000 8 000 66 000 27 000 39 000 1 000 38 000 9 500 28 500 0 8 Classified balance sheet at the end of the reporting year March 31 2016 Include 1 income taxes for the current year in Income Taxes payable and 2 dividends in Retained earnings JORDAN SALES COMPANY Balance Sheet March 31 2016 Assets Current Assets Cash Accounts receivable Office supplies inventory Total current assets Automobiles Accumulated depreciation Automobiles Office equipment Accumulated depreciation Office equipment Total assets Current Liabilities Liabilities Accounts payable Income taxes payable Salaries and commissions payable Total current liabilities Stockholders Equity Note payable Total liabilities Contributed capital Capital stock Paid in capital Total contributed capital Retained earnings Total stockholders equity Total liabilities and stockholders equity 58 000 49 000 1 000 108 000 34 000 14 000 3 000 1 000 22000 130 000 22 000 9 500 2 000 33 500 33 000 66 500 33 000 5 000 38 000 25 500 63 500 130 000
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