A condensed income statement for Stock Storage and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. 2. Does Stock's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Stock"s net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) STOCK STORAGE Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues $ 2,090 100 % $ 2,170 100 % Cost of Goods Sold 1,697 81 % 1,661 % Selling, General, and Administrative Expenses 285 286 13 % Other Operating Expenses 51 2 % 14 1% Interest Expense 20 % 32 1 % Income before Income Tax Expense 37 2 % 177 % Income Tax Expense 0 % 46 2 % Net Income $ 32 % 2$ 131

A condensed income statement for Stock Storage and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. 2. Does Stock's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Stock"s net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) STOCK STORAGE Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues $ 2,090 100 % $ 2,170 100 % Cost of Goods Sold 1,697 81 % 1,661 % Selling, General, and Administrative Expenses 285 286 13 % Other Operating Expenses 51 2 % 14 1% Interest Expense 20 % 32 1 % Income before Income Tax Expense 37 2 % 177 % Income Tax Expense 0 % 46 2 % Net Income $ 32 % 2$ 131

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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Please complet the vertical analysis table and summurize your observations about changes in finacial trends, in the following income statement line items ( net sales, operting income and net earnings attributable to proter and gamble)
Please answer requirement 1
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a spreedsheet is needed to complete for this question. PR17-04b from Cegage accounting 2 (financial statement analysis)
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i, j and k
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