Presented below is information related to Viel Company at December 31, 2014, the end of its first year of operations.?
Sales revenue $302,250 Cost of goods sold 147,900 Selling and administrative expenses 51,290 Gain on sale of plant assets 27,520 Unrealized gain on available-for-sale investments 10,840 Interest expense 6,220 Loss on discontinued operations 11,440 Allocation to noncontrolling interest 41,180 Dividends declared and paid 5,060 (a) Income from operations (b) Net income (c) Net income attributable to Viel Company’s controlling shareholders (d) Comprehensive income (e) Retained earnings balance at December 31, 2014
What is the difference between Operating income and Net income?
OPERATING INCOME :-Operating income is the income you generate through your operations. This is your revenue from sales of products and services performed in your daily business operations less the expenses it takes to produce and sell them. Operating income does not take into consideration: income from investments, expenses from financing or taxes, or one-time extraordinary expenses or income items, such as the gain on the sale of an asset.OPERATING INCOME FORMULA :-Operating Income = Gross Income – Operating Expenses – Depreciation & AmortizationNET INCOME :-Net income is the final bottom-line income for your business. If your operating income is $125,000 and you paid $10,000 interest on your loan, $12,000 in taxes, and you had $1,000 in dividend income, your Net Income would be $104,000 ($125,000 +$1 ,000 – $10,000 – $12,000).NET INCOME FORMULA :-Net Income = Operating Income + Investment Income – Interest Expense +One-time Extraordinary Income – One-time Extraordinary Expenses – TaxesWHY ARE THEY DIFFERENT?The reason for the distinction? Operating income represents how the revenue and expenses flow in and out from business operations alone, regardless of whether your business operates on debt or has extra cash reserves. If your operating income is healthy, your business value will likely be healthy regardless of your net income.ByAkbar Khan
Does anyone know how to figure out operating income?
The adjusted trial balance of Pacific Scientific Corporation on December 31, 2013, the end of the company’s fiscal year, contained the following income statement items ($ in millions): sales revenue, $2,125; cost of goods sold, $1,290; selling expenses, $140; general and administrative expenses, $130; interest expense, $55; and gain on sale of investments, $70. Income tax expense has not yet been accrued. The income tax rate is 35%. Assume the company’s accountant prepared a multiple-step income statement. What amount would appear in that statement for operating income? Ignore EPS disclosures. What amount would appear in that statement for nonoperating income? Ignore EPS disclosures
ACCOUNTING HELP!!! Presented below is information for Yates Co. for the month of January 2010.?
Presented below is information for Yates Co. for the month of January 2010. Cost of goods sold $217,340 Rent expense $33,156 Freight-out 7,589 Sales discounts 8,306 Insurance expense 13,267 Sales returns and allowances 17,269 Salary expense 63,522 Sales 371,830 (a) Complete the income statement below. Assume a 25% tax rate. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1.) TYPES OF ACCOUNT DESCRIPTIONs: - Cose of goods sold - Sales - Sales returns and allowances - Freght- out - Sales discounts - Insurance expense - Salary expense - Rent expense -Income tax expense YATES COMPANY Income Statement For the month ended January 31,2010 Debit Credit Sales revenues 1.___________ $_____ Less: 1.__________ $ ______ 2.__________ $ ______ = ____________ Net Sales $____________ _______________ _________________ Gross Profit = ________________ Operating expenses 1.___________ ____________ 2.___________ ____________ 3.___________ ____________ Total Operating Expenses = _____________ Income before income taxes __________________ _________________________ __________________ Net Income =___________________ (b) Calculate the profit margin ratio and the gross profit rate. (Round ratio and rate to 1 decimal place, e.g. 5.1.) Profit margin ratio ___ % Gross profit rate ___% thanks a lot!