Question

I have an accounting question...

Answer 1

This is the gross profit I got from the statement I did before I got to this problem:
353,738
And these are the expense costs:
273,453

Answer 2

The vice-president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis using 20% of net sales. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $53,061 and operating expenses by $88,322. Compute the expected new net income. (Hint: You do not need to prepare an income statement).

Answer 3

I think think that's all the info you need to solve this problem...

Answer 4

MERTSJ!

Answer 5

Well, I am not an accountant and I do not play one on tv but my daughter is an accountant so does that count?

Answer 6

The only thing I can think of to do is add the $53,061 to the old gross profit figure and add the $88322 to the expense costs. What else could you do?

Answer 7

I know, right? That's what I did, but got the wrong answer.

Answer 8

Oh. I bet they want you to subtract the expenses from the new income and report the net income as a negative number.

Answer 9

53051-88322= the result of their change on their bottom line.

Answer 10

Nope

Answer 11

idk if im giving you all the info needed...
this problem is a multiple step problem.
i had to create an income statement, a retained earnings statement, and a balance sheet prior to getting to this question.

Answer 12

What was the net income you computed earlier?

Answer 13

ive tried 35,261 and 45,024

Answer 14

I got 45014

Answer 15

thats not it...

Answer 16

61,942 is the original net income i got when i did the income statement prior to this question (and its correct)

Answer 17

So have you tried 26671?

Answer 18

thats not either. if you cant figure it out, just let it go. i'll find some help somewhere else.

Answer 19

Try 26681. I made an mistake.

Answer 20

it is 26,681!

Answer 21

howd u get that?

Answer 22

The old (correct) net income was 61941. They added 53061 in income and had 88322 more expenses. S0: 61941+53061-88322

Answer 23

i see it now thanks

Answer 24

yw Now. May I please have my CPA license?

Answer 25

lol not before i get mine

Answer 26

Good luck.

Answer 27

but that wont be happening because im not even an accounting major lol