Accounts payable=45,000

Question

Accounts receivable=122,400
Accruals=13,500
Additional paid in capital=216,660
Cas=?
Common Stock @ par value=42,000
COGS=172,731.00
Depreciation expense=23,920.00
Interest expense=16,520.00
Inventories=115,200
Long-term debt=139,413.00
Net fixed assets=399,600
Notes payable=64,800
Operating expenses (excl. depr.)=63,599.00
Retained earnings=136,800
Sales=336,935.00
Taxes=18,961.00
What is the entry for the cost of goods sold on a common-sized income statement?

Answer 1

To find the entry for the cost of goods sold (COGS) on a common-sized income statement, we express COGS as a percentage of total sales.

First, we have the following information:

• COGS: 172,731.00
• Sales: 336,935.00

Next, we can calculate the COGS as a percentage of sales using the following formula:

\[ \text{COGS percentage} = \left( \frac{\text{COGS}}{\text{Sales}} \right) \times 100 \]

Now, substituting the values into the formula, we get:

\[ \text{COGS percentage} = \left( \frac{172,731.00}{336,935.00} \right) \times 100 \]

Calculating that gives us:

1. \( \frac{172,731.00}{336,935.00} \approx 0.5120\)
2. Multiply by 100: \( 0.5120 \times 100 \approx 51.20% \)

Therefore, the entry for the cost of goods sold on a common-sized income statement would be approximately 51.20% of total sales.