1 2 Sales 3 Less: Cost of goods sold + Gruss margin This Year $950,000.00 Last Year $900,000.00 (500,000.00) (490,000.00) $450,000.00 $410,000.00 5 Less operating expenses: 6 Selling and Administrative expenses (275,000.00) (260,000.00) 7 Operating income $175,000.00 $150,000.00 8 Less: 9 Interest expense (12.000.00) (18.000.00) 10 Net income before taxes $163,000.00 $132,000.00 11 Less: n 12 Income taxes (65,200.00) (52,800.00) 13 Net income after taxes $97,800.00 $79,200.00 14 Less: 15 Dividends 16 Net income, retained (27,800.00) (19,200.00) $70,000.00 $60,000.00 Required: 1. Compute the percentage change for each item on the following financial statements: A balance sheet B. income statement 2. CONCEPTUAL CONNECTION Comment on any significant trends.
1 2 Sales 3 Less: Cost of goods sold + Gruss margin This Year $950,000.00 Last Year $900,000.00 (500,000.00) (490,000.00) $450,000.00 $410,000.00 5 Less operating expenses: 6 Selling and Administrative expenses (275,000.00) (260,000.00) 7 Operating income $175,000.00 $150,000.00 8 Less: 9 Interest expense (12.000.00) (18.000.00) 10 Net income before taxes $163,000.00 $132,000.00 11 Less: n 12 Income taxes (65,200.00) (52,800.00) 13 Net income after taxes $97,800.00 $79,200.00 14 Less: 15 Dividends 16 Net income, retained (27,800.00) (19,200.00) $70,000.00 $60,000.00 Required: 1. Compute the percentage change for each item on the following financial statements: A balance sheet B. income statement 2. CONCEPTUAL CONNECTION Comment on any significant trends.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1
2 Sales
3 Less: Cost of goods sold
+ Gruss margin
This Year
$950,000.00
Last Year
$900,000.00
(500,000.00) (490,000.00)
$450,000.00
$410,000.00
5 Less operating expenses:
6 Selling and Administrative expenses
(275,000.00)
(260,000.00)
7 Operating income
$175,000.00
$150,000.00
8 Less:
9
Interest expense
(12.000.00)
(18.000.00)
10 Net income before taxes
$163,000.00
$132,000.00
11 Less:
n
12 Income taxes
(65,200.00)
(52,800.00)
13 Net income after taxes
$97,800.00
$79,200.00
14 Less:
15 Dividends
16
Net income, retained
(27,800.00)
(19,200.00)
$70,000.00
$60,000.00
Required:
1. Compute the percentage change for each item on the following financial statements:
A balance sheet
B. income statement
2. CONCEPTUAL CONNECTION Comment on any significant trends.
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