Exercise 13-4 (Algo) Computing and interpreting common-size percents LO P2Express the following comparative income statements in common-size percents. Using the common-size percents, which item ismost responsible for the decline in net income?Complete this question by entering your answers in the tabs below.IncomeStatementReason forDecline in NetIncomeExpress the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimalplace.)SalesCost of goods soldGross profitOperating expensesNet incomeGOMEZ CORPORATIONComparative Income StatementsFor Years Ended December 31Current Year $ Current Year % Prior Year $$100.0 S 660,00077.1282,20022.9377,80017.5237,200140,600S745,000565,400179,600130,40049,2005.4 $Prior Year %100.043.456.634.622.0Peason for Decline in Net Income > Exercise 13-4 (Algo) ComputingExpress the following comparative income statements in common-size percents. Using the common-size percents, which itemmost responsible for the decline in net income?Complete this question by entering your answers in the tabs below.IncomeStatementReason forDecline in NetIncomeUsing the common-size percents, which item is most responsible for the decline in net income?Using the common-size percents, which item is most responsible for the decline in net income?Income StatementOperating expenses

For comparative analysis, the elements of income statement would be compared to the sales revenue of…

Answered: Exercise 13-4 (Algo) Computing and…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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pt. 16 i Gross sales Sales returns and allowances Net sales Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research LOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2022 and 2023 Miscellaneous Total operating expenses Income before interest and taxes Interest expense Income before taxes Provision for taxes Net income $ $ $ $ GAGA $ $ $ $ 2023 19,000 $ 1,000 18,000 $ 12,000 6,000 $ 700 $ 2,200 550 360 LA LA 3,810 $ 2,190 $ 560 1,630 640 990 $ $ 2022 15,000 100 14,900 9,000 5,900 600 2,000 500 300 3,400 2,500 500 2,000 800 1,200 Increase (Decrease) Amount Percent
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Problem 13-2A (Algo) Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 2020 2019 Sales Cost of goods sold $ 402,346 $ 308,230 242,212 $ 213,900 194,493 136,896 Gross profit 160,134 113,737 77,004 Selling expenses 57,133 42,536 28,235 Administrative expenses 36,211 27,124 17,754 Total expenses 93,344 69,660 45,989 Income before taxes Income tax expense 66,790 44,077 31,015 12,423 9,036 6,296 Net income $ 54,367 $ 35,041 $ 24,719 KORBIN COMPANY Comparative Balance Sheets December 31 Assets Current assets Long-term investments Plant assets, net Total assets Current liabilities Liabilities and Equity Common stock Other paid-in capital Retained earnings Total liabilities and equity $ 180,932 2021 $ 63,959 116,973 0 2020 $ 42,808 800 106,691 $ 180,932 $ 150,299 $…
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Review the following: Data Table Cost of Goods Sold $101 Gross Sales 181 Sales Returns and Allowances 16 Sales Discounts 21 Operating Expenses 47 From the information provided, calculate: a. Gross profit b. Net income or net loss Calculate (a) Gross profit. - = Gross profit - = Calculate (b) Net income or net loss. (Use parentheses or a minus sign to show a net loss.) - = Net income or net loss - =
2.4 Would the shareholders be happy with the profitability of the company? Use an appropriate ratio to motivate your answer. 2.5 Calculate the ratio for 2021 that reflects how the stock market is judging the company’s earnings performance and prospects. 2.6 Explain the impact on the cost of sales in the statement of comprehensive income if LIFO rather than FIFO method of valuing inventories is used during periods of rising prices. INFORMATION Extracts of the statement of comprehensive income and statement of financial position of Silverstone Limited for 2021 and 2020 are as follows: Statement of Comprehensive Income for the year ended 31 December: 2021 (R) 2020 (R) Sales 6 400 000 5 440 000 Cost of sales 4 000 000 3 264 000 Gross profit 2 400 000 2 176 000 Operating expenses 960 000 1 056 000 Operating profit 1 440 000 1 120 000 Profit before tax 1 280 000…
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1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y2 as the base year. Enter decreeses as negative amounts and negative percentages. Round percentage changes to one decimal place. Greyhound Technology Company Comparative Income Statement For the Years Ended December 31, 20Y3 and 20Y2 Increase (Decrease) Increase (Decrease) Amount 20Υ3 20Y2 Percent Sales $739,806 $646,000 S Cost of goods sold (533,000) (410,000) Gross profit $206,806 $236,000 Seling expenses $(74,250) $(54,000) Administrative expenses (43,180) 4,00) Total operating expenses 117,430) $(88,000) Income from operations $89.376 $148.000 3,351 2,700 Other income Income before income tax $92,727 $150,700 S (26,000) (45,200) Income tax expense $66,727 S105,500 Net income
Recording of next year's sales as sales of the current year will Group of answer choices a.overstate net income of next year b.not affect retained earnings at the end of next year c.understate retained earnings at the end of the current year d.understate net income of the current year
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Exercise 17-4 (Algo) Computing and interpreting common-size percents LO P2 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. (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 $ Current Year % 780,000 $ 560,000 220,000 130,400 89,600 $ Income Statement Prior Year $ $ $ 660,000 295,400 364,600 251,600 113,000 Prior Year % Reason for Decline in Net Income >

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