Preview

Turnip Tom's Inc. Financial Analysis

Good Essays
Open Document
Open Document
256 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Turnip Tom's Inc. Financial Analysis
A detailed statement of Turnip Tom's Inc. shows the company's first-year accounting profit. An accounting profit is a total revenue subtracted from the explicit cost (Thomas & Maurice, 2010).

In order to calculate the accounting profit one has to add operating costs and expenses. The goal is to understand the gross profit, these details on the income statement improve the practice of managers improve upon their product (Shah, 2011).

Cost of products sold at twelve-five-hundred added to selling expenses at five-thousands-five equals eighteen-thousands. In addition, the administrative expenses are added to both the product sold and selling expenses, which is an additional five-thousands-two-hundred-dollars comes to a total of twenty-three-thousands-two-hundred

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Acc202 Wk 1 Assgnment 1

    • 566 Words
    • 3 Pages

    The product cost in a merchandising company, such as a retail toy store, is relatively easy to determine. It includes vendor’s price charged on the invoice, freight cost, and other necessary costs to make the inventory available for sale. Measuring product cost for a manufacturing entity, though, requires a more complex system. First of all, the manufacturing firm has to classify its costs between product costs and period costs. The firm has to accumulate product costs such as direct materials, direct labor, and manufacturing overhead. Once the product costs have been accumulated, the firm has to classify the cost of a product that has been sold as expense, and the cost of an unsold product as inventory, an asset.…

    • 566 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Acc 403

    • 297 Words
    • 2 Pages

    In adding the sale of $35,500 worth of computers, it adds to the sales revenue as well as the cost of goods sold.…

    • 297 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Profits Econ 213

    • 417 Words
    • 2 Pages

    Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources, including those owned by the firm. Therefore, profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make the cheesecake is $15 this give the bakery a $5 profit per cheesecake.…

    • 417 Words
    • 2 Pages
    Good Essays
  • Better Essays

    First, the income statement is used to express a firm’s revenues, gains, expenses, and losses. Revenue is the money earned from day to day business dealings within the company. The expenses that are located on the income statement are due to cost of operating a business. Companies balance out the equation on the income statement as follows revenues minus expenses equal net income. The income statement shows how much profit was earned by the company after all expenses have been taking out. If total expenses exceed total revenues, a net loss is reported on the income sheet.…

    • 814 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    MBA6008 Unit 3 Assignment 1

    • 1252 Words
    • 11 Pages

    Accounting profit is the profit that would appear on your accounting statement that you would report to the government for tax purposes.…

    • 1252 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    $220,000 (end inventory) - $25,000 (inventory at end of year) = $195,000 (cost of goods sold)…

    • 951 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Luxor Case Answers

    • 327 Words
    • 2 Pages

    The calculation that converts the Wholesale selling price of the 12/31/2008 lipstick inventory shown as $11.5 million to the “cost” of $9.7 million:…

    • 327 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    PSY 202 Week 1 DQs

    • 732 Words
    • 3 Pages

    Costs. Read Problem 10-21 and discuss the differentiation between product versus general, selling, and administrative costs by setting up financial statements from the transactions in the problem. Respond to at least two of your classmates’ postings…

    • 732 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    The net profit identifies the income gained after subtracting all the admissible expenses of the company. This is acknowledged by measuring the net profit over an allotted period (Ferrell, et al.,…

    • 1574 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Cash Flow

    • 2474 Words
    • 10 Pages

    The information necessary to determine a company’s profit as a percentage of sales can be found in the company’s income statement.…

    • 2474 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Case Study 7-55

    • 479 Words
    • 2 Pages

    Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000…

    • 479 Words
    • 2 Pages
    Powerful Essays
  • Good Essays

    cost accounting

    • 4544 Words
    • 19 Pages

    The range of costs included within a product costing system varies from one organisation to another. A comprehensive picture of product costs requires the inclusion of upstream and downstream costs. In practice many businesses confine their product costing systems to manufacturing costs. This is particularly true of small to medium-sized manufacturing businesses since more comprehensive costing systems cost more to implement and maintain. The costing systems that only include manufacturing costs produce the inventory valuations for external financial reporting required by…

    • 4544 Words
    • 19 Pages
    Good Essays
  • Powerful Essays

    Profit and Loss Accounts

    • 969 Words
    • 4 Pages

    Gross profit is another important financial term referring to the amount of money that a business would make after deducting all costs related to those sales. These costs can include manufacturing expenses, raw materials, labour, selling, marketing and other expenses used to create and sell the product.…

    • 969 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    “Profitability is a term of economic efficiency. Mathematically, it is relative index- a fraction with profit as the numerator and generating profit flows or assets as denominator.” (3) A closer look at accounting profits shows that it is mainly a mathematical process following firm’s cash flow. The ex-plicit cost are explained as the expenses that a firm must incur when operating. These expenses in-clude cost of raw material, wages, capital investments in machinery and property, office supplies, and other items…

    • 1010 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    A Business can be defined as the organised effort of individuals to produce and sell, for a profit, the products that satisfy individuals' needs and wants.…

    • 3597 Words
    • 15 Pages
    Powerful Essays