Comparison:1. Observe the trend of revenues for both companies. Which company has higher revenue?2. Observe the gross margin for both companies. Which company is more profitable?3. Observe the operating expenses for both companies. Which company has more operating expenses?4. Observe the net income for both companies. Which company is more profitable?5. Which company is more profitable using this type of analysis? ABS-CBN CORP.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millionsVertical Analysis2010200920082007Revenues100.0%100.0%100.0%100.0%Cost of Sales52.5%58.4%59.5%55.1%GROSS PROFIT (Gross Income/Net Revenues)47.5%41.6%40.5%44.9%Selling General & Admin Expenses, Total26.7%25.6%24.4%26.7%Depreciation & Amortization, Total2.5%3.0%3.7%3.2%Other Operating Expenses1.3%1.0%1.2%1.2%OTHER OPERATING EXPENSES, TOTAL30.4%29.6%29.3%31.1%0.0%0.0%0.0%INCOME FROM OPERATIONS (Operating Income)17.1%12.0%11.2%13.8%|Interest Expense-3.7%-4.0%-3.5%-2.9%Interest and Investment Income0.4%0.4%0.5%0.6%|Income (Loss) on Equity Investments0.0%0.0%0.0%0.1%Currency Exchange Gains (Loss)Other Non-Operating Income (Expenses)Gain (Loss) on Sale of InvestmentsOther Unusual Items0.8%0.4%-0.1%1.1%1.3%2.3%2.7%-0.8%-0.2%0.0%0.0%0.0%0.0%0.0%1.6%1.1%INCOME BEFORE TAX15.7%11.1%12.3%13.1%Income Tax Expense4.0%3.1%5.3%5.7%NET INCOME11.7%8.0%7.1%7.4% GMA NETWORK INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millions2010200920082007Revenues100.0%100.0%100.0%100.0%Cost of Goods Sold40.7%39.3%40.3%40.3%GROSS PROFIT (Gross Income/Net Revenues)59.3%60.7%59.7%59.7%Selling General & Admin Expenses, Total24.7%23.5%22.5%22.5%Depreciation & Amortization, Total2.6%3.2%3.6%3.3%Other Operating Expenses1.4%1.5%1.4%1.3%OTHER OPERATING EXPENSES, TOTAL28.7%28.2%27.5%27.1%INCOME FROM OPERATIONS (Operating Income)30.5%32.5%32.2%32.5%Interest Expense0.0%-0.1%-0.1%-0.2%Interest and Investment Income0.6%0.5%0.7%0.7%Income (Loss) on Equity Investments0.1%-0.1%-0.1%0.0%Currency Exchange Gains (Loss)-0.2%-0.1%0.0%-0.2%Other Non-Operating Income (Expenses)0.2%0.2%0.4%0.9%Gain (Loss) on Sale of Assets0.1%0.1%0.3%0.0%Other Unusual Items, Total0.0%0.0%0.0%0.2%NET INCOME BEFORE TAX31.2%33.1%33.4%33.9%Income Tax Expense8.0%8.8%10.9%11.2%NET INCOME23.2%24.3%22.5%22.6%

The question is related to analysis of Financial Statements of two companies from 2007 to 2010 based…

Comparison: 1. Observe the trend of revenues for both companies. Which company has higher revenue? 2. Observe the gross margin for both companies. Which company is more profitable? 3. Observe the operating expenses for both companies. Which company has more operating expenses? 4. Observe the net income for both companies. Which company is more profitable? 5. Which company is more profitable using this type of analysis?

Comparison: 1. Observe the trend of revenues for both companies. Which company has higher revenue? 2. Observe the gross margin for both companies. Which company is more profitable? 3. Observe the operating expenses for both companies. Which company has more operating expenses? 4. Observe the net income for both companies. Which company is more profitable? 5. Which company is more profitable using this type of analysis?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

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Conduct a vertical and horizontal analysis in the given data
VER Describe the trend of revenues from 2007 to 2010. What observations can be drawn? Describe the trend of operating income from 2007 to 2010. What observations can be drawn? Describe the trend of net income from 2007 to 2010. What observations can be drawn?
Find the Net Sales
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) Year Ended December 31, Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses 2019 2018 2017 37,266 S 34,300 S 36,212 14,619 13,067 13,721 22,647 21,233 22,491 12,103 11,002 12,834 458 1,079 1,902 Other operating charges 10,086 9,152 7,755 Operating Income Interest income 563 689 679 946 950 853 Interest expense Equity income (loss)-net 1,049 1,008 1,072 34 (1,674) (1,763) Other income (loss)- net 10,786 8,225 6,890 Income Before Income Taxes 1,801 1,749 5,607 Income taxes 8,985 6,476 1,283 Consolidated Net Income 42 35 Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company 65 8,920 S 6,434 S 1,248 2.09 S 1.51 $ 0.29 Basic Net Income Per Share 2.07 S 1.50 $ 0.29 Diluted Net Income Per Shard 4,276 4,259 4,272 Average Shares Outstanding- Basic 38 40 52 Effect of…
Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate 35.00% Revenue / Assets 1.80 times Current Ratio 2.40 times EBT / EBIT 0.80 times Assets / Equity 1.90 times Smith Brothers, Inc.'s return on assets (ROA) is closest to: A. 14.04%. B. 14.82%. C. 24.71%. D. 26.68%.
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Find the Gross Profit
GIVE THE COMPARATIVE INCOME STATEMENT HORIZONTAL AND VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - -…
GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…
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