Author Question: Below is an income statement for Daily Kneads. Fill in the missing amounts. Daily Kneads Income ... (Read 88 times)

vinney12 · **on:** Jul 5, 2018

Below is an income statement for Daily Kneads. Fill in the missing amounts.

Daily Kneads
Income Statement
For the Month Ended September 30, 2012

Sales a. ________
Cost of goods sold 100,000
Gross profit 200,000
Administrative expenses b. ________
Operating income 80,000
Interest expense c. ________
Earnings before taxes 70,000
Income taxes (rate 35) d. ________
Net income e. ________

Question 2

COBIT was developed to:
a. provide guidance to managers, users, and auditors on the best practices for the management of information technology
b. identify specific control plans that should be implemented to reduce the occurrence of fraud
c. specify the components of an information system that should be installed in an e-commerce environment
d. suggest the type of information that should be made available for management decision making

yahahah24021 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

a. 200,000 + 100,000 = 300,000
b. 200,000 - 80,000 = 120,000
c. 80,000 - 70,000 = 10,000
d. 70,000 x .35 = 24,500
e. 70,000 24,500 = 45,500

Answer to Question 2

A