CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Trend Analysis Common-Size Analysis (In millions, except share and per share amounts) Fiscal Years Ended December 31, 2020-2021 2019-2020 2021 2020 2021 2020 2019 $ Change % Change $ Change % Change (Percent of Net Sales) Net sales 4,900 4,600 5,194 Cost of Goods Sold 3,296 3,240 3,296 GROSS PROFIT Stores and Distribution Expense 980 805 882 Selling, General and Administrative Expense 392 345 490 10 23 29 Other Operating Expense (Income), Net OPERATING INCOME Interest Income (Expense) (1) (5) (2) OPERATING INCOME BEFORE TAXES 98 81 196 Income Tax Expense NET INCOME EARNINGS PER SHARE $4 2$ 2020 Formulas/Links: Calculate the following for: Gross Profit Margin (percentage) Net Profit Margin (percentage) 2021 n/a n/a n/a n/a Select the possible explanations for the change in the Gross Profit Margin from 2020 to 2021:
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Trend Analysis Common-Size Analysis (In millions, except share and per share amounts) Fiscal Years Ended December 31, 2020-2021 2019-2020 2021 2020 2021 2020 2019 $ Change % Change $ Change % Change (Percent of Net Sales) Net sales 4,900 4,600 5,194 Cost of Goods Sold 3,296 3,240 3,296 GROSS PROFIT Stores and Distribution Expense 980 805 882 Selling, General and Administrative Expense 392 345 490 10 23 29 Other Operating Expense (Income), Net OPERATING INCOME Interest Income (Expense) (1) (5) (2) OPERATING INCOME BEFORE TAXES 98 81 196 Income Tax Expense NET INCOME EARNINGS PER SHARE $4 2$ 2020 Formulas/Links: Calculate the following for: Gross Profit Margin (percentage) Net Profit Margin (percentage) 2021 n/a n/a n/a n/a Select the possible explanations for the change in the Gross Profit Margin from 2020 to 2021:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
can you help me fill out my journal
Transcribed Image Text:6
UBERCRUMMIE & FRITCH CO.
7
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Trend Analysis
Common-Size Analysis
8
(In millions, except share and per share amounts)
Fiscal Years Ended December 31,
2020-2021
2019-2020
2021
2020
9
$ Change
% Change
$ Change
% Change
(Percent of Net Sales)
10
2021
2020
2019
Net sales
4,900
4,600
$
5,194
11
Cost of Goods Sold
3,296
3,240
3,296
12
13
GROSS PROFIT
14
Stores and Distribution Expense
980
805
882
15
Selling, General and Administrative Expense
392
345
490
10
23
29
16
Other Operating Expense (Income), Net
17
OPERATING INCOME
18
Interest Income (Expense)
(1)
(5)
(2)
19
OPERATING INCOME BEFORE TAXES
98
81
196
20
Income Tax Expense
21
NET INCOME
2$
22
EARNINGS PER SHARE
23
Calculate the following for:
2021
2020
Formulas/Links:
24
n/a
n/a
Gross Profit Margin (percentage)
n/a
25
26
Net Profit Margin (percentage)
n/a
27
28
Select the possible explanations for the change in the Gross Profit Margin from 2020 to 2021:
29
30
31
Expert Solution
Step 1
In order to make decisions from the financial statements prepared by a company, the managers may often use some tools for analysis purposes. Two common methods of such analysis are the common size analysis and the trend analysis. The common size analysis involves the presentation of each amount in the financial statement as a percentage of a base amount that is pre-determined. Because of that kind of analysis, it is also known as vertical analysis.
Trend analysis involves the presentation of the change in data from year to year in currency form and in percentage form. It is also used to compare financial statements of other companies in the same industry.
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