Common-size and trend percents for Roxi Company’s sales, cost of goods sold, and expenses follow. Determine whether net income increased, decreased, or remained unchanged in this three-year period. Common-Size PercentsTrend PercentsCurrent Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs AgoSales...100.0%100.0%100.0%105.4%104.2%100.0%Cost of goods sold.63.461.959.1113.1109.1100.0Total expenses..15.314.815.1106.8102.1100.0

A common size income statement is an income statement in which each line item is expressed as a…

Common-Size Percents Trend Percents Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Sales... 100.0% 100.0% 100.0% 105.4% 104.2% 100.0% Cost of goods sold. 63.4 61.9 59.1 113.1 109.1 100.0 Total expenses.. 15.3 14.8 15.1 106.8 102.1 100.0

Common-Size Percents Trend Percents Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Sales... 100.0% 100.0% 100.0% 105.4% 104.2% 100.0% Cost of goods sold. 63.4 61.9 59.1 113.1 109.1 100.0 Total expenses.. 15.3 14.8 15.1 106.8 102.1 100.0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using…

A: In a horizontal analysis, the increase/decrease in amount and percentage as compared with the base…

Q: Conduct a trend analysis (horizontal) for the company over current and last two years based on…

A: 2,018.00 2,017.00 % change 2018 from 2017 2,016.00 % change 2017…

Q: Dollar Tree, Inc. Common Size Income Statement Total revenue Cost of sales Selling, general and…

A: Common size statements are used for the analysis of financial statements. The Common Size Income…

Q: Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow.…

A: The net income for the current year using the trend percentage can be determined by applying the…

Q: Required information Use the following information to determine the prior year and current year…

A: Comparative financial statements are used to compare two or more years to understand the financial…

Q: Vertical analysis of income statement Revenue and expense data for Innovation Quarter Inc. for two…

A: Income statement refers to the statement used for the computation of net profits after deducting…

Q: The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year…

A: DIO( Days Inventory Outstanding)=(Avg Inventory/COGS)*No of days

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: The statement of comprehensive income is the profit earned and loss incurred during the period…

Q: Need answer

A: Step 1:Introduction to the Gross Profit PercentThe gross profit percentage can be explained as the…

Q: From the following financial statements, compute the required ratios (for year 2002 and 2003) and…

A: 1. Average Inventory = Opening Inventory + closing Inventory2 for year 2002 = 540,000.00…

Q: Identify any favorable and unfavorable trends in the following income statements by preparing a…

A: A vertical analysis of income statement expresses each account as a percentage of total revenue.An…

Q: A condensed income statement for Corolla Corporation and a partially completed vertical analysis are…

A: There are two type of analysis prepared by the management which are, (1) Vertical income analysis…

Q: The following data were extracted from the income statement of Keever Inc.: Current Year Previous…

A: Average Inventory = ( Opening Inventory + Closing Inventory ) / 2 For Current Year = (…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: percentage calculation = particulars / sales * 100 for example sales percentage = ($725000 /…

Q: Compute the ratios for the current and past year for Dollar Tree In. on the Ratio and Comments…

A: Common size statements are used for the analysis of financial statements. The Common Size Income…

Q: During the current year, Sokowski Manufacturing earned income of $459,595 from total sales of…

A: Your profit on the sale of a good or service is computed using the sales margin after all related…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: The common size statement is prepared as ratio analysis of various elements of financial statements…

Q: compute the dupont framework ratios for company A for year three only. the income statement and…

A: Financial ratios are ratios that analyze two or more elements of the financial statement and explain…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Comparative Income StatementComparative statements display financial data for different periods side…

Q: 7 5 rint Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses…

A: Income Statement :— It is one of the financial statement that shows profitability of company during…

Q: 2) Ratios Based on the information given in picture #1, complete the following ratios for the last…

A: Ratio analysis is used to compare the financial performance of a business entity within the…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Common size comparative income statement :— It is an income statement in which all items of income…

Q: Fork Saved Express the following comparative income statements in common-size percents. Using the…

A: The objective of the question is to express the comparative income statements in common-size…

Q: A condensed income statement for Simultech Corporation and a partially completed vertical a…

A: Each line item on the financial statement is expressed as a percentage of the base amount, which…

Q: The following data were extracted from the income statement of Keever Inc.: Current Year Previous…

A: The inventory turnover ratio helps to analyze the efficiency of the business to convert its…

Q: Use the following information to determine the Prior Year and Current Year trend percents for net…

A: Formula: Trend Percentage = Current year sales / prior year sales Division of current year sales…

Q: How do you calculate net sales? Also... Do you only look at current year data or do you factor…

A: Net Sales=Gross Sales-Returns-Allowances-Discounts where, Gross sales=the total unadjusted sales of…

Q: Income statements for Campbell Company for Year 3 and Year 4 follow: CAMPBELL COMPANY Income…

A: Financial statement analysis seems to be a critical business discipline that allows businesses to…

Q: Calculate the profitability ratios of Dernham Inc. in the following table. Convert all calculations…

A: Profitability ratios are financial metrics used by analysts and investors to measure and evaluate…

Q: Calculate the profitability ratios of Dernham Inc. in the following table. Convert all calculations…

A: Profitability ratios are financial metrics used by analysts and investors to measure and evaluate…

Q: What is equity security?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: 4, Below is the common-sized statement for the calendar year for Linen and Such and Household…

A: Common sized income statement is prepared to presents the items of the statement as a percentage of…

Q: Based on the information given in picture #1, complete the following ratios for the last TWO years…

A: Ratio - It is the comparison between two or more financial parameter to each other for analyzing the…

Q: The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as…

A: The earnings per share has been calculated as follows: Earning per share = (Net income-Preferred…

Q: Compute common-size percent for the following comparative income statements (round percent to one…

A: Common size statement: It implies to a form of interpretation and analysis of the company's…

Q: The following items were taken from the hinancial statements d Item Net Sales Cost of Goods Sold…

A: Trend Percentage = Current Year / Base Year * 100

Q: Consider the following income statement data from the Ross Company: Current Year Prior Year $962,500…

A: Comparative financial statement means where the difference is taken between the figure of two years…

Q: For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the…

A: Horizontal analysis means to compare the financial position of an entity's current year with its…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Working: Formula for calculation of common size percentage is = (Amount/Net sales) x 100

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Common size financial statement means where every item of income statement is shown in percentage by…

Q: Vertical Analysis 2020 2019 2018 Sales revenue 100.0% 100.0% 100.0% Cost of goods sold 60.0…

A: Net income= Sales revenue- cost of good sold-expense. 2020 2019 2018 Sales 100% 100% 100%…

Question

Common-size and trend percents for Roxi Company’s sales, cost of goods sold, and expenses follow.
Determine whether net income increased, decreased, or remained unchanged in this three-year period.

Common-Size Percents
Trend Percents
Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago
Sales...
100.0%
100.0%
100.0%
105.4%
104.2%
100.0%
Cost of goods sold.
63.4
61.9
59.1
113.1
109.1
100.0
Total expenses..
15.3
14.8
15.1
106.8
102.1
100.0

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 common size statement.

VIEW

Step 2 Trend analysis.

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Perform a horizontal and vertical analysis. Use 1 decimal place for percentage result on vertical analysis.
Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net income?
Determine the Prior Year and Current Year common-size percents for cost of goods sold using net sales as the base. ( answers in thousands of dollars.) ($ thousands) Net sales Cost of goods sold Current Year: Prior Year: Prior Current Year $801,810 $ 453,000 Year: 392,887 134,088 Common-Size Percent for Cost of Goods Sold using Net Sales as the base: Choose Denominator: Base year net sales 801,810/ $ 453,000/ $ Choose Numerator: Analysis period net sales S S 453,000= 453,000 = Common-size percents 177.0 % 100.0 %
Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Yes
2) Ratios Based on the information given in picture #1, complete the following ratios for the last TWO years and indicate whether the trend is favorable or unfavorable. Note percentages and times should be to one decimal place (e.g. 14.8%; 5.8x) Profitability Ratios Current Yr. Prior Yr. Fav/Unfav. Gross Margin (%) {Gross Income/Sales Revenue} Profit Margin (%) {Net income/ Sales Revenue} Return on Assets (%) {Net Income/ Average Total Assets}
Gray Company’s year-end balance sheets follow. (1) Express the balance sheets in common-size percent. Round percent to one decimal. (2) Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? (3) Is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? At December 31 Current Year 1 Year Ago Assets Cash $ 31,800 $ 35,625 Accounts receivable, net 89,500 62,500 Merchandise inventory 112,500 82,500 Prepaid expenses 10,700 9,375 Plant assets, net 278,500 255,000 Total assets $523,000 $445,000 Liabilities and Equity Accounts payable $129,900 $ 75,250 Long-term notes payable 98,500 101,500 Common stock, $10 par value 163,500 163,500 Retained earnings 131,100 104,750 Total liabilities and equity…
6. The following is the adjusted trial balance data for Nino's Pizzenia as of December 31, 2019. NINO'S PIZZERIA Adjusted Trlal Balance Year Ended December 31,2019 Debit Credit S 775,984 45,688 200,460 135,624 Cash Accounts Receivable Buildings Merchandise Inventory Accounts Payable Common Stock Sales Interest Revenue Rent Revenue Sales Salaries Expense office Supplies Expense Sales Discounts Interest Expense Sales Returns and Allowances, Cost of goods sold Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals $437,880 410,542 555,696 84,652 86,900 24,500 6,270 102,890 4,577 105.854 122,853 20.000 10.555 2,780 17:635 $1,575,670 $1,575,670
Prepare common size income statements Which company earns more net income? Which companies net income has a higher percentage of its net sales revenue?
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 %…
8
Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $62,500). Inventory turnover is 5 (average inventory is $7,800). Accounts receivable turnover is 8 (average accounts receivable is $7,700). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 8800 Income tax expenses 3800 Net Income
Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible 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. GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 725,000 100.0 $ 665,000 Cost of goods sold 562,700 1.0 291,000 Gross profit 162,300 0.4 374,000 Operating expenses 129,200 268,400 Net income 33,100 $ 105,600 Income Statement Reason for Decline in Net Income >