Case Question 12-22 Pippin Piping Co. manufactures decorative fabric trims. The
ID: 2589592 • Letter: C
Question
Case Question 12-22 Pippin Piping Co. manufactures decorative fabric trims. The company's financial statements follow Pippin Piping Co. Comparative Income Statements For the Years Ended December 31 2016 2015 2014 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Other revenue $576,600 $523,000 $484,200 291,000 259,200 234,300 285,600 263,800 249,900 106,200 104,600 104,100 179,400 159,200 145,800 22,500 11,200 15,900 10,500 23,900 11,900 190,700 164,600 157,800 Income tax expense (40%) 76,280 65,840 63,120 $114,420 $98,760$94,680 Interest expense Income before income tax Net incomeExplanation / Answer
solution-
Pippin Piping Company
Comparative Income statement for the year ended december 31
Pippin Piping Company
Comparative Balance Sheet as on December 31
Liablities and stock holder's Equity
Stockholder's Equity
Particular 2016 2015 $ Change % Change Sales $ 576,600 $ 523,000 53,600 10.2 Cost of Goods sold $ 291,000 $ 259,200 31,800 12.2 Gross Margin $ 285,600 $ 263,800 21,800 8.2 Operating Expenses $ 106,200 $ 104,600 1,600 1.5 Operating Income $ 179,400 $ 159,200 20,200 12.6 Other Revenue $ 22,500 $ 15,900 6,600 41.5 Interest Expenses $ 11,200 $ 10,500 700 6.6 Income Before income tax $ 190,700 $ 164,600 26,100 15.8 Income tax (40%) $ 76,280 $ 65,840 10,440 15.8 Net Income $ 114,420 $ 98,760 15,660 15.8