5. Data for June for Ozaki Corporation and its two major business segments, North and South, appear below: Sales revenues, North. $550,000 Variable expenses, North. $270,000 Traceable fixed expenses, North $88,000 Sales revenues, South $110,000 Variable expenses, South $47,000 Traceable fixed expenses, South........ $21,000 In addition, common fixed expenses totaled $145,000 and were allocated as follows: $73,000 to the North business segment and $72,000 to the South business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the North business segment is: A. $270,000 B. $119,000 C. $207,000 D. $192,000

Stockton Co. prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively?          Net Sales Revenue $ 649,000   Cost of Sales   431,000   Gross Profit   218,000   Operating and Other Expenses   88,500   Interest Expense   32,500   Income Tax Expense   35,500   Net Income $ 61,500         Cost of Sales Gross Profit Interest Expense A)   73.4 %   100.0 %   16.3 %   B)   49.7 %   60.7 %   39.7 %   C)   100.0 %   50.6 %   8.2 %   D)   66.4 %   33.6 %   5.0 %             Multiple Choice   Option B   Option C   Option A   Option D

N2. Account

A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year $7,350, 000 4,630,000 2,720, 000 $5,586,000 3,510, 000 2,076,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses 1,074,500 615, 500 Total expenses Net operating income Interest expense 1, 382, 000 703,500 2,085,500 634,500 105, 000 1,690, 000 386, 000 91, 000 Net income before taxes 529, 500 $4 295, 000 Members of the company's board of directors are surprised to see that net income increased by only $234,500 when sales increased by $1,764,000. %24

Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc.  Income statement For the year ended December 31, 2021 net sales                       $240 Cost of goods sold      $150 gross profit                    $90 Operating expenses      $65 Net income                      $25   Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%

[The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year.    Department M Department N Department O Department P Department T Total Sales $ 67,000 $ 37,000 $ 60,000 $ 46,000 $ 32,000 $ 242,000 Expenses             Avoidable 11,800 38,800 23,600 16,000 41,400 131,600 Unavoidable 53,400 15,000 4,600 31,800 12,600 117,400 Total expenses 65,200 53,800 28,200 47,800 54,000 249,000 Income (loss) $ 1,800 $ (16,800) $ 31,800 $ (1,800) $ (22,000) $ (7,000)     Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated.

Assume Martinez Company has the following reported amounts: Sales revenue $ 610,000, Sales returns and allowances $ 30,000, Cost of goods sold $ 396,500, and Operating expenses $ 84,000. (a) Compute net sales. Net sales (b) Compute gross profit. Gross profit (c) Compute income from operations. Income from operations (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %24

5.  Revenue and expense data for Young Technologies Inc. are as follows:   Year 2 Year 1 Sales $500,000   $440,000   Cost of goods sold 325,000   242,000   Selling expenses 70,000   79,200   Administrative expenses 75,000   70,400   Income tax expense 10,500   16,400 Required: a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. ... b. Complete the following regarding the significant changes disclosed by the comparative income statement. The vertical analysis indicates that the cost of goods sold as a percent of sales (increased/decreased) between the two years. Selling and administrative expenses as a percentage of sales (increased/decreased) and income tax expense (increased/decreased).  Overall, net income as a percent of sales (increased/decreased).

Revenue and expense data for Bluestem Company are as follows: Administrative expenses Cost of goods sold Income tax expense Sales Selling expenses Year 2 $37,000 350,000 40,000 800,000 150,000 Year 1 a. Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. Round percents to one decimal point. Bluestem Company Total operating expenses $ $ There was Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 $20,000 320,000 32,000 700,000 110,000 Year 2 Year 2 Amount Percent 11% % Year 1 Year 1 Amount Percent %%$ % $ %$ % % % % % % % b. Comment upon significant changes disclosed by the comparative income statement. in the cost of goods sold, and in cost of goods sold and contributed greatly to the in administrative expenses. However, the more significant in net income. in selling expenses offset the

Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages.   TannenhillCompany   ElectronicsIndustryAverage Sales $4,000,000      100.0  % Cost of goods sold (2,120,000)     (60.0)   Gross profit $1,880,000      40.0  % Selling expenses $(1,080,000)     (24.0) % Administrative expenses (640,000)     (14.0)   Total operating expenses $(1,720,000)     (38.0) % Operating income $160,000      2.0  % Other revenue and expense:               Other revenue 120,000      3.0        Other expense (80,000)     (2.0)   Income before income tax expense $200,000      3.0  % Income tax expense (80,000)     (2.0)   Net income $120,000      1.0  % a.  Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…