(c) comment on the relative profitability of these companies. (D) based on your calculations above, identify two main reasons for the difference in their profitability.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 13GI
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(c) comment on the relative profitability of these companies. (D) based on your calculations above, identify two main reasons for the difference in their profitability.
25.
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21 Required
Calibri
BIU-E
Net sales
Cost of goods sold
Operating expenses
Interest expense
Income tax expense
Cash
Other current assets
Long-term assets (net)
Current liabilities
Long-term liabilities
Share capital
Retained earnings
Net sales
Cost of goods sold
Gross margin
Operating expenses
Interest expense
fox 16.4%
AP12-1B AP12-14B
Accessibility: Investigate
-11
Font
Type here to search
E X
A
B
D
E
F
3 Comparative financial statement data for UCW Brewery Ltd. and SFU Beer Ltd., two competitors, follow (amounts in thousands):
4
$
$
Data Review View Help
À À
S.A.
+
с с
2024
19
UCW Brewery Ltd.
2,06,700
1,00,500
85,400
7,800
4,700
12,000 $
86,000
2,10,000
71,900
1,03,900
51,200
81,000
ENT
22 a) Prepare a common-size analysis for 2024 for UCW Brewery Ltd. and SFU Beer Ltd.
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2,06,700
1,00,500
1,06,200
85,400
7,800
2023
UCW Brewery Ltd.
Amount $
10,000
80,500
2,09,600
60,800
1,17,500
48,500
73,300
O
.
%
100.0%
48.6%
51.4%
41.3%
3.8%
Alignment
Bi
$
ab Wrap Text
Tell me what you want to do
$
Merge & Center -
Common size analysis for income statement
2024
SFU Beer Ltd.
40,500
15,300
17,190
370
1,130
4,500 $
8,200
29,100
3,900
8,000
17,800
12,100
F
SFU Beer Ltd.
Amount $
40,500
15,300
25,200
17,190
370
Individual Assignment Excell
14
Percentage
4
2023
%40
Number
2,500
7,400
30,700
4,000
7,400
16,700
12,500
%
100.0%
7.4%
12.2%
8.3%
0.2%
no
G
+
www
Conditional Format as
Formatting Table St
Styles
H
Financial managers examine financia
financial data each line item is expres
Return on assets
Calculation formul
Transcribed Image Text:25. File Paste E87 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Home Cut Le Copy Edit FH Format Painter Clipboard Insert Page Layout Formulas 20 21 Required Calibri BIU-E Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Cash Other current assets Long-term assets (net) Current liabilities Long-term liabilities Share capital Retained earnings Net sales Cost of goods sold Gross margin Operating expenses Interest expense fox 16.4% AP12-1B AP12-14B Accessibility: Investigate -11 Font Type here to search E X A B D E F 3 Comparative financial statement data for UCW Brewery Ltd. and SFU Beer Ltd., two competitors, follow (amounts in thousands): 4 $ $ Data Review View Help À À S.A. + с с 2024 19 UCW Brewery Ltd. 2,06,700 1,00,500 85,400 7,800 4,700 12,000 $ 86,000 2,10,000 71,900 1,03,900 51,200 81,000 ENT 22 a) Prepare a common-size analysis for 2024 for UCW Brewery Ltd. and SFU Beer Ltd. 23 24 25 26 27 28 29 30 2,06,700 1,00,500 1,06,200 85,400 7,800 2023 UCW Brewery Ltd. Amount $ 10,000 80,500 2,09,600 60,800 1,17,500 48,500 73,300 O . % 100.0% 48.6% 51.4% 41.3% 3.8% Alignment Bi $ ab Wrap Text Tell me what you want to do $ Merge & Center - Common size analysis for income statement 2024 SFU Beer Ltd. 40,500 15,300 17,190 370 1,130 4,500 $ 8,200 29,100 3,900 8,000 17,800 12,100 F SFU Beer Ltd. Amount $ 40,500 15,300 25,200 17,190 370 Individual Assignment Excell 14 Percentage 4 2023 %40 Number 2,500 7,400 30,700 4,000 7,400 16,700 12,500 % 100.0% 7.4% 12.2% 8.3% 0.2% no G + www Conditional Format as Formatting Table St Styles H Financial managers examine financia financial data each line item is expres Return on assets Calculation formul
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Clipboard
A
a)
b)
Format Painter
Insert
E
X
Page Layout
Calibri
BIU
Net sales
Cost of goods sold
Gross margin
Operating expenses
Interest expense
Income tax expense
Net earnings
Total assets
Total shareholders' equity
✓ fix 16.4%
Average total assets
Average total sh equity
Return on assets (ROA) =
Return on equity (ROE) =
V
AP12-1B AP12-14B
Formulas
Accessibility: Investigate
Type here to search
Font
$
1.
Ś
11
B
C
D
E
Prepare a common-size analysis for 2024 for UCW Brewery Ltd. and SFU Beer Ltd.
$
$
Data Review View
ΑΔ
& A.
+
▾
2,06,700
1,00,500
1,06,200
85,400
7,800
4,700
8,300
2024
1Sa
UCW Brewery Ltd.
Amount $
=
UCW Brewery Ltd.
Calculate the return on assets and the return on shareholders' equity for both companies.
30,800 $
1,32,200 $
2.73%
304050 (308000+300100)/2
127000 (132200+121800)/2
6.54%
N
Common size analysis for income statement
%
100.0%
48.6%
51.4%
41.3%
O
Help
← →
2023
Alignment
3.8%
2.3%
4.0% $
II
$
ab Wrap Text
с
Tell me what you want to do
3,00,100 $
1,21,800 $
Merge & Center
Amount $
40,500
15,300
25,200
17,190
370
1,130
6,510
SFU Beer Ltd.
2024
SFU Beer Ltd.
41,800 $
29,900 $
41200 (41800+40600)/2
29550 (29900+29200)/2
19
15.80%
22.03%
Individual Assignment - Excel
Percentage
Q
F
% 9
2023
Number
%
100.0%
7.4%
12.2%
8.3%
0.2%
0.5%
3.1%
40,600
29,200
+0
Y
no
.00
4.0
G
Conditional Format as
Formatting Table Style
Styles
Financial managers examine financial a
financial data each line item is expresse
*ROA =
H
*ROE =
Return on assets
Calculation formula
$262,850
$97,450
Net earnings
Avg total assets
Net earnings
Avg sh equity
Transcribed Image Text:File 4 Paste E87 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Edit H Home Cut E Copy - Clipboard A a) b) Format Painter Insert E X Page Layout Calibri BIU Net sales Cost of goods sold Gross margin Operating expenses Interest expense Income tax expense Net earnings Total assets Total shareholders' equity ✓ fix 16.4% Average total assets Average total sh equity Return on assets (ROA) = Return on equity (ROE) = V AP12-1B AP12-14B Formulas Accessibility: Investigate Type here to search Font $ 1. Ś 11 B C D E Prepare a common-size analysis for 2024 for UCW Brewery Ltd. and SFU Beer Ltd. $ $ Data Review View ΑΔ & A. + ▾ 2,06,700 1,00,500 1,06,200 85,400 7,800 4,700 8,300 2024 1Sa UCW Brewery Ltd. Amount $ = UCW Brewery Ltd. Calculate the return on assets and the return on shareholders' equity for both companies. 30,800 $ 1,32,200 $ 2.73% 304050 (308000+300100)/2 127000 (132200+121800)/2 6.54% N Common size analysis for income statement % 100.0% 48.6% 51.4% 41.3% O Help ← → 2023 Alignment 3.8% 2.3% 4.0% $ II $ ab Wrap Text с Tell me what you want to do 3,00,100 $ 1,21,800 $ Merge & Center Amount $ 40,500 15,300 25,200 17,190 370 1,130 6,510 SFU Beer Ltd. 2024 SFU Beer Ltd. 41,800 $ 29,900 $ 41200 (41800+40600)/2 29550 (29900+29200)/2 19 15.80% 22.03% Individual Assignment - Excel Percentage Q F % 9 2023 Number % 100.0% 7.4% 12.2% 8.3% 0.2% 0.5% 3.1% 40,600 29,200 +0 Y no .00 4.0 G Conditional Format as Formatting Table Style Styles Financial managers examine financial a financial data each line item is expresse *ROA = H *ROE = Return on assets Calculation formula $262,850 $97,450 Net earnings Avg total assets Net earnings Avg sh equity
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