INCOME STATEMENT (Thousands of dollars) Net revenues - Cost of goods sold - Operating expenses - Research & development expense Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders Dividends Addition to retained earnings The gross margin for this fictional company is: 14.7% 9.2% 18.2% 60.3% $ O 33.3% $ $ $ $ $ $ LA GA $ In this example, the firm pays half of its earnings as dividends to its stockholders and retains the other half. This is done for simplicity here, but firms weigh a multitude of factors in setting their dividends. This issue will be covered in your finance course. Check Your Understanding Yr 2 7,000 (2,781) account to learn about it. (1,809) (912) (5,502) (223) (1,275) (190) 1,085 (434) 651 (9) 642 Income Statement Roll your mouse over each income statement 321 321
INCOME STATEMENT (Thousands of dollars) Net revenues - Cost of goods sold - Operating expenses - Research & development expense Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders Dividends Addition to retained earnings The gross margin for this fictional company is: 14.7% 9.2% 18.2% 60.3% $ O 33.3% $ $ $ $ $ $ LA GA $ In this example, the firm pays half of its earnings as dividends to its stockholders and retains the other half. This is done for simplicity here, but firms weigh a multitude of factors in setting their dividends. This issue will be covered in your finance course. Check Your Understanding Yr 2 7,000 (2,781) account to learn about it. (1,809) (912) (5,502) (223) (1,275) (190) 1,085 (434) 651 (9) 642 Income Statement Roll your mouse over each income statement 321 321
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...
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