2. What can you say about the net income for the year 2020?A) Net Income has increased as a result of the increased operating profit.B) Net Income has decreased as a result of the decreased operating profit whichresulted from the increase in COGS..C) Net income is $2,061 representing 1.3% of sales. The company has a overalldecrease in profit compared to the year 2019.D) Both (B) & (C)E) None of the above2What is the gross profit marcin for the compover the years 2020 and 2019 Income Statement: The income statement of Taco Bell company is given for theyears 2020 & 2019.20202019General and administrative expenses25,00024,000Interest expense1,2001,500Net sales$124,000$138,000Selling expenses11.88012,720Income taxes$1,109.51,883COGS108,00095,000Gain on Sale of land450600

Given: Particulars 2020 2019 Net sales $124,000 $138,000 Cost of goods sold $108,000 $95,000

2. What can you say about the net income for the year 2020? * O A) Net Income has increased as a result of the increased operating profit. B) Net Income has decreased as a result of the decreased operating profit which resulted from the increase in COGS... C) Net income is $2,061 representing 1.3% of sales. The company has a overall decrease in profit compared to the year 2019. D) Both (B) & (C)

2. What can you say about the net income for the year 2020? * O A) Net Income has increased as a result of the increased operating profit. B) Net Income has decreased as a result of the decreased operating profit which resulted from the increase in COGS... C) Net income is $2,061 representing 1.3% of sales. The company has a overall decrease in profit compared to the year 2019. D) Both (B) & (C)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Analyze the company’s strengths and weaknesses in terms of liquidity, solvency and profitability.
Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. A. 1.25% B. (1.25%) Percentage increase (decrease) in sales price. C. (2.125%) D. 2.125%
The year-end balance sheet of Time Company shows net operating profit margin (NOPM) of 3.1%, net operating asset turnover (NOAT) of 4.41, return on equity of 3.5%, and adjusted return on assets of 2.2%.What is the company's nonoperating return? (10.2)% 1.3% (12.3)% (10.6)% None of these are correct.
Suppose a company has had the historic sales figures shown below. What would be the forecast for next years sales using the average approach?
The following information relates to a company for two periods: year 1; profit- GH¢131250, sales- GH¢1375000; year 2; profit- 225000, sales- GH¢1750000. What is the margin of safety if profit is GH¢262000?
The amount of net income for 2021 per the income statement is 15% higher than net income for 2020 for the same company. Can an interested stakeholder safely assume that this increase reflects an improved operating performance for the current year?
How do I solve this?
Vishal
Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales Gross Margin 2020 P80,000 50,000 P30,000 2021 P97,200 72,000 P25,200 The firm sold its sole product for P8/unit during 2020. Even though the sales units increased by 20% during 2021, the gross margin declined. Disappointed with the results, the owner asked for your assistance in analyzing the cause of the gross margin decline. Percentage increase (decrease) in unit cost. A. 20% C. (44%) B. (20%) D. 44%
Q1) You are required to calculate the Relative Percentage Change in the company for the blanks below and the Net Profit for the other blanks. Show all working out below including the formula used for each year and include the completed table here. Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net Profit ($ 000’) <blank> 50 200 150 225 250 <blank> 200 250 260 Relative Percentage Change N/A -50% 300% <blank> 50% 11% -30% 14% 25% <blank> Table 1: Net Profit ($) per financial year Q1 a) Using Excel, create a column chart of the Net Profit calculated in part (a) for the years 2010-2019. label the axis and provide an appropriate title. Q1 b) Using Excel, create a Sparkline of the Relative Percentage Change calculated in part (a) for the years 2011-2019. use the Sparkline options to mark if there are any negative values and include a horizontal axis to easily visualise…
Smith Corporation had Sales of $2,350,000 in 2021 and $2,125,000 in 2020. Cost of Good Sold were $1,400,000 in 2021 and $1,325,000 in 2020. a. What was the percentage change in Sales year to year? b. What was the percentage change in Cost of Goods Sold year to year? c. Relative to the percentage in Sales, would you say the percentage change on Cost of Goods Sold was favorable or unfavorable? d. Is this an example of horizontal or vertical analysis?
1) Analyze the time-series of each company’s sales growth (i.e., growth in operating revenue). If you average sales growth over the 2015 through 2019 period, which airline is experiencing greater growth pre-COVID19?a) DELTA b) ALLEGIANT 2) Analyze each company’s gross margin (operating income, or EBIT, divided by operating revenue). Which company has better historical pre-COVID19 gross margins?a) DELTAb) ALLEGIANT 3) Understanding that depreciation expense is largely dependent on management decision making, recalculate gross margin but add depreciation and amortization back to EBIT; in other words, calculate gross margin using EBITDA. Does examining gross margin using EBITDA change your answer to question #2? a) Yes b) No 4) With respect to leverage, company _______ is more highly levered (i.e., has more debt) than company _______.a) DELTA, ALLEGIANTb) ALLEGIANT, DELTA 5) Compute ROE as NI ÷ (Average Owners’ Equity). Delta’s 2019 ROE is approximately _____ and Allegiant’s 2019 ROE is…

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