BUS 500 TUI Balance Sheet For VWV Worksheet


Description

We reviewed the counterpoise subterfuge for VWV in the preceding module. This interval we are examining the pay declaration for the similar being.

VWV Company

Income Statement

For the Period Ending December 31, 20XX

Revenues

$540,000

Cost of chattels sold

200,000

Gross profit

$340,000

Operating outlays

Salaries

$120,000

Lease for office

30,000

Advertising and promotion

24,000

Utilities

9,700

Property taxes

18,000

Payroll taxes

11,500

Insurance

8,000

Depreciation

19,922

Miscellaneous outlays

9,000

Total at-liberty outlays

$250,122

Operating pay

$89,878

Interest pay

$2,500

Interest outlay

12,000

Net concern outlay

$9,500

Net pay

$80,378

Use the aloft pay declaration to acceptance the questions adown.

Is VWV a manufacturer/reseller or a employment aggregation?

Explain the engagement cost of chattels sold in your own say. Why is this item indicative?

Does the aggregation entertain employees?

Does the aggregation own some cast of quality? Can we divulge from contemplateing at the pay declaration fantastical or do we deficiency to contemplate at the counterpoise subterfuge too?

Are rights per divide dignified notification for VWV Company?

How is slander computed and what is the scope of including slander outlay?

How do the dividends feign the pay declaration?

How do we comprehend that VWV Aggregation is using the accrual plea of accounting? Hint: Do not overappear to contemplate at the counterpoise subterfuge from the preceding module.

Why is the aggregation using the accrual plea of accounting rather than the currency plea?

Comment on at-liberty pay versus net pay.