Every year, Professor Dumbledore assigns the instructors at Hogwarts to various faculty committees.

Net income or (Loss) = $43,128. The provided information states that: Elegant Decor Company Forecasted annual income statement Under the strategy to eliminate Department 200 Sales = $437,000 Cost of goods sold = $261,000 Gross profit = $176,000 Operating expenses Direct expenses: Advertising = $15,500 Store supplies utilized = $4,500 Depreciation of Store Equipment = $4,200 Total Direct Expense = $24,200 Allocated Expenses: Sales Salaries = $64,000 ($104,000-2×$24,200+($31,200÷2) = $40,000) (104,000-$40,000) Rental Expenses = $14,180 Bad debt expense = $9,400 Office salary = $15,600 ($31,200 - ($31,200 ÷ 2)) Insurance expense = $1,724 ($2,200 - $476) Miscellaneous expense = $3,728 ($4,000 - $272) Total Allocated Expenses = $108,632 Total Expense = $132,872 ($108,632 + $24,200) Net income or (Loss) = $43,128 ($176,000 - $132,872)

Answer:

The selections appear to be: B and D.

Explanation:

I also possess kitchen towels.

Answer:

1. Create a statement for retained earnings.

Net income = $943,400

Retained earnings as of May 31, 2018 = $3,792,500

2. Construct a balance sheet, assuming a current portion of the note payable is $50,000.

Total Net Assets = Stockholder’s equity = $4,292,500

Explanation:

1. Create a statement for retained earnings.

The first step is preparing the income statement to find the net income as shown below:

Clairemont Co.

Income Statement

for the fiscal year ended May 31, 2018

Details                                                         $            

Sales                                                   11,343,000

Cost of goods sold                           (7,850,000)

Gross Income                                      3,493,000

Selling and Distribution expenses:

Sales salaries expense                        (916,000)

Advertising expense                           (550,000)

Depreciation expense - Store equipment        (140,000)

Miscellaneous selling expense            (38,000)

Administrative expenses:

Office salaries expense                     (650,000)

Rent expense                                        (94,000)

Insurance expense                               (48,000)

Depreciation expense - Office equipment   (50,000)

Office supplies expense                       (28,100)

Miscellaneous administrative expense         (14,500)  

Operating income                                964,400

Interest expense                                   (21,000)

Net income                                          943,400

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Clairemont Co.

Retained Earnings Statement

for the fiscal year ended May 31, 2018

Details                                                             $            

Retained earnings at June 1, 2017         2,949,100

Net income for the year                            943,400

Dividends                                                  (100,000)

Retained earnings at May 31, 2018       3,792,500  

2. Construct a balance sheet, assuming a current portion of the note payable is $50,000.

Clairemont Co.

Balance sheet

for the fiscal year ended May 31, 2018

Details                                                     $                         $      

Fixed Assets

Office equipment                             830,000

Accumulated depreciation - office equip   (550,000)            280,000      

Store equipment                            3,600,000

Accumulated depreciation - store equip    (1,820,000)         1,780,000

Net Fixed Assets                                                        2,060,000

Current Assets

Cash                                                    240,000

Accounts receivable                          966,000

Inventory                                           1,690,000

Estimated returns inventory                 22,500

Office supplies                                       13,500

Prepaid insurance                                   8,000  

Total current assets                         2,940,000

Current Liabilities

Accounts payable                               (326,000)

Customer refunds payable                   (40,000)

Salaries payable                                     (41,500)

Note payable                                         (50,000)

Working Capital                                                               2,482,500

Long-term Liability

Note payable (300,000 - 50,000)                                 (250,000)

Net Total Assets                                                            4,292,500

Financed by:

Common stock                                                                 500,000

Retained earnings at May 31, 2018                                 3,792,500  

Stockholder’s Equity                                                     4,292,500

Note:

Since both the Total Net Assets and Stockholder’s equity are equal at $4,292,500, this indicates the financial statement is correctly prepared as both values are meant to coincide.

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Conclusion: Advertisement

Rationale: When they mention receiving consecutive awards, it essentially promotes the message "Purchase our vehicle; we consistently receive awards," which I view as a form of advertising.