2019 Actual Results2019 Planned2$2$Net Sales$19,550100%$22,560100%Cost of Goods Sold$9,38451%Indirect Expenses$5,47425%Direct Expenses$3,91018%Profit$7826%Based on above figures, which of the following statement is (are) true? Select the mostcomplete, correct answer(s).(1) actual profit is below planned profit because actual cost of goods sold is higher tharplanned(2) actual profit is below planned profit because direct expenses are higher than planne(3) actual profit is above planned profit because net sales are lower than planned(4) actual profit is below planned profit because indirect expenses are higher thanplanned1 & 2O 1, 3, & 4O 1, 2, & 4O 2 & 4

Indirect expense ratio (actual) = Indirect expenses / sales Similarly, other ratios can be…

Answered: 2019 Actual Results 2019 Planned $ 24…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 1: Comparative income statements for 2020 and 2019 follow. Sales Cost of Sales Gross Profit Operating Expenses Operating Income Interest Expense Earnings Before Tax Income Taxes Net Income 2020 $9,434,000 7,075,400 $2,358,600 $2,201,360 1,367,690 1,365,060 $ 990,910 $836,300 157,500 126,000 $ 833,410 $ 710,300 400,000 317,200 $ 433,410 $ 393,100 2019 $7,862,000 5,660,640 Required: 4 a. Prepare a vertical common-size analysis of this statement for each year, using sales as the base. b. Comment briefly on the changes between the two years, based on the vertical common-size statement.
LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2020 2020 2019 Gross sales $20,600 $16,200 Sales returns and allowances 800 100 Net sales $19,800 11,600 $ 8,200 $16,100 8,600 $ 7,500 Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research Miscellaneous Total operating expenses Income before interest and taxes Interest expense 860 680 3,400 2,800 710 580 520 380 sa $5,490 $ 2,710 $ 4,440 $ 3,060 720 580 Income before taxes $ 1,990 $2,480 992 Provision for taxes 796 Net income $ 1,194 $ 1,488 LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 2019 Assets Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) $12,800 17,300 9,300 24,800 $64, 200 $ 48, 700 $ 9,800 13,300 14,800 10,800 $15,300 14,300 $11, 800 9,800 Land acer Σ %24 %24
Consider whether actual performance has improved since 2019 (actual 2021 vs. 2019) Consider whether the performance achieved is as good as Sonik intended (actual 2021 vs. budget 2021) and how it compares to the market leader
2018 2019 2020 Revenue 800 856 899 COGS 500 Gross Profit 300 **Assume that in 2018 $300 of COGS was Variable and $200 was fixed. Assuming revenue growth was driven by 5% volume and 2% price in 2019, what is the gross profit in 2019? Show your work. Assuming revenue growth in 2020 was driven by 4% volume growth and 1% price increase, what would be gross profit in 2020? Show your work.
ni1
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. Increase (decrease) in gross margin due to change in sales price. A. P1,000 C. P17,200 B. P1,200 D. (P4,800)
Excerpts from the annual report of XYZ Corporation follow: 2019 $675,138 $241,154 $64,150 $93,650 $25,100 2020 Cost of goods sold Inventory Net income $754,661 $219,686 $31,185 $68,685 $26,900 Retained earnings LIFO reserve Tax rate 20% 20% If XYZ used FIFO, its net income for fiscal 2020 would be O a. $34,165 O b. $30,375 O c. $32,625 d. $36,545
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Consider the following informationYear Profit Ending book value of assets Ending book value of debt1 $100 $1 030 $7202 $120 $1 060 $7403 $60 $1 000 $800At the end of year t, the company’s book value of assets and debt are $1 000 and $700, respectively. The analyst expects that after year t+3 profit will be $0 and the book values of assets and debts will not change from the prior year. The cost of equity (WACC) is 10 per cent. Calculate the present value of free cash flows for the end of each year.
Problem 12-2A (Algo) Perform horizontal analysis (LO12-2) The income statements for Anything Outdoors for the years ending December 31, 2024 and 2023, are provided below. Required: 1. Complete the "Amount" and "%" columns to be used in a horizontal analysis of the income statements for Anything Outdoors. (Decreases should be indicated by a minus sign. Round your percentage answers to 1 decimal place.) Net sales Cost of goods sold Gross profit Operating expenses Operating income Other income (expense) Income before tax Income tax expense Net income ANYTHING OUTDOORS Income Statements For the Years Ended December 31 2024 2023 $ 3,350,000 $2,520,000 $ 2,100,000 1,250,000 785,000 465,000 9,000 474,000 97,500 376,500 $ $ 1,355,000 1,165,000 610,000 555,000 5,500 560,500 135,000 425,500 $ Increase (Decrease) Amount 830,000 745,000 85,000 175,000 (90,000) 3,500 (86,500) (37,500) (49,000) % 32.9
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Calculate the gross profit percentage for 2022 with comparative figures Discuss 3 ways in which the gross profit margin can be improved 2022 R 2021 R Sales (all credit) 1 435 400 1 685 400 Cost of sales (all credit) (778 700) (825 600)

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