a. Prepare a vertical analysis of Danielle's Design Services Income statements. If required, round your percentages to one decimal place. Do not enter the percent sign. Danielle's Design Services Fees earned Expenses: Wages expense Income Statements For the Years Ending December 31 Year 2 Amount Year 2 Percent $765,340 % Year 1 Amount Year 1 Percent $696,520 % $254,000 % $214,600 % Rent expense 120,000 % 108,000 Supplies expense 76,500 % 98,715 % < Miscellaneous expense 11,680 16,420 % Total expenses $462,180 % $437,735 % Income from operations $303,160 % $258,785

a. Prepare a vertical analysis of Danielle's Design Services Income statements. If required, round your percentages to one decimal place. Do not enter the percent sign. Danielle's Design Services Fees earned Expenses: Wages expense Income Statements For the Years Ending December 31 Year 2 Amount Year 2 Percent $765,340 % Year 1 Amount Year 1 Percent $696,520 % $254,000 % $214,600 % Rent expense 120,000 % 108,000 Supplies expense 76,500 % 98,715 % < Miscellaneous expense 11,680 16,420 % Total expenses $462,180 % $437,735 % Income from operations $303,160 % $258,785

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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A vertical analysis of two income statements for Danielle's Design Services is shown below: Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Year 1 Amount Percent Amount Percent Fees earned $765,340 100.0% $696,520 100.0% Operating expenses: Wages expense $254,000 33.2% $214,600 30.8% Rent expense 120,000 15.7% 108,000 15.5% Supplies expense 76,500 10.0% 98,715 14.2% Miscellaneous expense 11,680 1.5% 16,420 2.4% Total operating expenses $462,180 60.4% $437,735 62.9%* Net income $303,160 39.6% $258,785 37.1%* *Differences due to rounding Which of the following analyses reflect the data given? a.Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend. b.Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend. c.Wages expense and rent expense show an unfavorable trend, while…
11. Day Lily's selected accounts as of December 31, 2025, follow: View the accounts and balances. Determine the gross profit percentage for the year ended December 31, 2025. Begin by selecting the formula labels to compute the gross profit percentage, then enter the amounts and compute the gross profit percentage. (Round your answer to the nearest tenth of a percent, X.X%.) Gross profit Net sales revenue = Gross profit % % Accounts and Balances Selling Expenses $ 11,500 Interest Revenue 1,500 Net Sales Revenue 150,000 Cost of Goods Sold 117,000 Administrative Expenses 9,500
After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places. Here is the operating data for Yalis Cleaning, Inc.: 2021 2020Service revenue $523,000 $476,000Operating expenses 385,500 319,800Income tax expense 34,375 39,050Net income $103,125 $117,150
Income Statement Bob's Bistro produces party-sized hoagie sandwiches. For next year, Bob's Bistro predicts that 53,000 units will be produced with the following total costs: Direct materials Direct labor Variable overhead Fixed overhead Beginning Ending ? Next year, Bob's Bistro expects to purchase $126,000 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows: Direct materials Inventory $5,000 $4,900 $73,000 27,000 230,000 Work-in-Process Inventory $13,700 $15,700 Next year, Bob's Bistro expects to produce 53,000 units and sell 52,300 units at a price of $13.00 each. Beginning inventory of finished goods is $47,500, and ending inventory of finished goods is expected to be $39,000. Total selling expense is projected at $22,000, and total administrative expense is projected at $117,500. Required: 1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For…
Here is the operating data for Yalis Cleaning, Inc.: After analyzing the transactions, prepare a vertical analysis schedule for the company for 2021 and 2020 using service revenue as the base amount. Round percentages to two decimal places.
Give a brief analysis of the data found in the chart created
Subject: accounting
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Return on assets The financial statements of The Hershey Company (HSY) are shown in Exhibits 6 through 9 of this chapter. Based upon these statements, answer the following questions. The percent that a company adds to its cost of sales to determine the selling price is called a markup. That is Hershey’s markup percent? Round to one decimal place.
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Give the last two entries (drawings and profit share).
Insert a pie chart with a 2-D visual effect for 2018 using all expense items in a new worksheet called, “Comparing Expenses”. Include all relevant labels, titles (not shown) and legends while changing the default colors. Thom-Pierre Consultants (TPC) Tax Rate COMPARITIVE INCOME STATEMENT 30% for years ended 31 December 2018 2019 Revenues and gains *Sales revenue *Interest revenue *Investment Income *Other revenue Total revenue and gains Expenses and losses **Cost of goods sold 460,000 **Selling and admin administrative 195,000 ***Computer (operating) **Depreciation 55,000 **Interest expense 25,200 Total expenses and losses Income before taxes Income tax expense (30%) Net Income