Common-size and trend percents for sales, cost of goods sold, and operating expenses follow.Common-Size PercentsCurrent Year 1 Year AgoSales100.0%100.ex2 Years Ago100.0%Current Year105.0%Trend Percents1 Year Ago2 Years AgoCost of goods soldOperating expenses63.414.461.257.4116.013.914.2106.6103.8X110.7101.6100.0%100.0100.0Did net income increase, decrease, or remain unchanged in this three-year period?Did net income increase, decrease, or remain unchanged in this three-year period?

SOLUTION. To determine whether net income increased, decreased, or remained unchanged over the…

Answered: Common-size and trend percents for…

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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Calculating inventory turnover A7X corporation has ending inventory of $625,817, the cost of goods sold for the year just ended was $9,758,345. What is the inventory turnover? The days sales in inventory? How long, on average, did a unit of inventory sit on the shelf before it was sold?
Calculate inventory turnover at cost (to nearest hundredth, format as 1.23 that's it, it's a ratio): Ending inventory $25,000 Cost of goods sold $43,000 Beginning inventory $15,000 Net sales $55,800
Express the following comparative income statements in common-size percents. C esponsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. Note: Round your percentage answers to 1 decimal place. Sales Cost of goods sold Gross profit Operating expenses Net Income GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year % 100.0 Current Year S $ $ 740,000 568,100 171,900 128,000 43,900 Prior Year $ $ $ 690,000 291,000 399,000 226,400 172,600 Prior Year % Reason for Decline in Not Ing
Ch 9 Problem Set B Problem 9-1 Part B The company uses the perpetual inventory method. It began the month of March with 100 units of inventory, at a unit cost of $55. Purchases during March March 5, 60 units at $60 each. March 18, 200 units at $65 each March 29, 40 units at $75 each. Sales during March March 12, 60 units. March 25, 210 units. All units were sold to customer for $100 each. 1. Use the following format to set up this inventory costing problem, as shown in Video #2. Inventory Date Units Cost per Total Cost Date Units Total Cost Unit Beg Balance Units Cost Beginning Balance + Purchases Goods Available for Sale - Sold Ending Balance
Cont of pictures: Calculate gross profit rate under each of the following methods 1. LIFO 2. FIFO 3. Average-cost (Round answers to 1 decimal place, e.g. 51.2%)
Which of the following statements is correct? Group of answer choices A)When cost of goods sold as a percentage of sales decreases, the gross profit percentage will decrease. B)It is possible that when cost of goods sold in dollars increases, cost of goods sold as a percentage of sales decreases. C)If gross profit percentage is the same for the current and past year, then sales and cost of goods sold in dollars did not change. d)If gross profit percentage increases from one year to the next, then the net income percentage will also increase from one year to the next. E)None of the above
Given the following percentage costs of carrying inventory, calculate the annual carrying cost if the average inventory is $1 million. Capital costs are 10%, storage costsare 6%, and risk costs are 9%.
At 12/31/20, the end of Lincoln Company's first year of business, inventory was $6,100 and $5,100 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Lincoln: Original Net Net Realizable Appropriate Cost Replacement Realizable Value Less Inventory Item Per Unit Cost Value Normal Profit Value A $ .65 $ .45 B .45 .40 C .70 .75 D .75 .65 E .90 .85 Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. There are 1,500 units of each…
0099.
[The following information applies to the questions displayed below.] Jaffa Company prepared its annual financial statements dated December 31 of the current year. The company applies the FIFO inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the ending inventory. The preliminary current year income statement follows: Sales revenue $290,000 Cost of goods sold Beginning inventory $ 34,000 194,000 228,000 63,300 Purchases Goods available for sale Ending inventory (FIFO cost) Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense (35%) 164,700 125,300 63,000 62,300 21,805 $ 40,495 Net income Assume that you have been asked to restate the current year financial statements to incorporate lower of cost or NRV. You have developed the following data relating to the current year ending inventory: Acquisition Cost Net Realizable Item Quantity Unit Total Value Per Unit $ 12,600 9,600 18,000 23,100 A 3,150 $ 4.00…
Cost of goods sold Average inventory 2020 2021 2022 $923,550 $980,640 126,290 Inventory Turnover 7.3 2021 6.3 5.3 156,510 2022 (a) Do a trend analysis of the inventory turnover for each year. Also calculate the days to sell invento (Round inventory turnover to 2 decimal places, e.g. 18.42 and number of days to 1 decimal place, e.g. 13.6., $1,149,910 $1,329,510 208,410 Number of Days 2023 321,820 days days days 2024 $1,408,530 451,860
21

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