本文发表在 rolia.net 枫下论坛Joe's manufacturing company sells its products for either cash or by notes receivable that earns interest. The business uses the direct write-off method to acount for unclooectible accounts. Joe,the owner, has prepared financial statements. The most recent comparative income statements, for 2005 and 2004 are as follows:
Total revenue $220,000(2005) $195,000(2004)
Total expense $157,000(2005) $140,000(2004)
Net Income $ 63,000(2005) $ 55,000(2004)
Based on the increase of net income Joe wants to expand the operation. You are asked to invest $50,000 in the business. You and Joe have serveral meetings to explore the opportunity. Upon requesting additional information you find that notes receivable from customers at the end of 2003 were $200,000 and $420,000 at the end of 2004. Total revenues for 2004 and 2005 include interest at 15% on the year's beginning notes receivable balance. Total expense include uncollectible account expense of $2,000 each year based on the direct write off method. Joe estimates that the uncollectibel account expense should be 5% of sales revenue if the financial statements followed GAAP.
1. Prepare for Joe's manufacturing company a comparative single stip income statement that identifies sales revenue, interest revenue, uncollectible account expense and other expenses all computed and presented in accoudance with GAAP.
2. Is Joe's company's future as promising as Joe's income statement makes it appear?why?
请大家指点一二，我做了好几次，一直觉得不太对，特别是第二个问题，不知如何着手！
多谢！！！更多精彩文章及讨论，请光临枫下论坛 rolia.net
Total revenue $220,000(2005) $195,000(2004)
Total expense $157,000(2005) $140,000(2004)
Net Income $ 63,000(2005) $ 55,000(2004)
Based on the increase of net income Joe wants to expand the operation. You are asked to invest $50,000 in the business. You and Joe have serveral meetings to explore the opportunity. Upon requesting additional information you find that notes receivable from customers at the end of 2003 were $200,000 and $420,000 at the end of 2004. Total revenues for 2004 and 2005 include interest at 15% on the year's beginning notes receivable balance. Total expense include uncollectible account expense of $2,000 each year based on the direct write off method. Joe estimates that the uncollectibel account expense should be 5% of sales revenue if the financial statements followed GAAP.
1. Prepare for Joe's manufacturing company a comparative single stip income statement that identifies sales revenue, interest revenue, uncollectible account expense and other expenses all computed and presented in accoudance with GAAP.
2. Is Joe's company's future as promising as Joe's income statement makes it appear?why?
请大家指点一二，我做了好几次，一直觉得不太对，特别是第二个问题，不知如何着手！
多谢！！！更多精彩文章及讨论，请光临枫下论坛 rolia.net