Exercise 14-1A (Algo) Horizontal analysis LO 14-1 Adams Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Adams Corporation's income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 234 should be entered as 23.4). Sales Cost of goods sold Gross margin Operating expenses Income before laxes Income taxes Net income (loss) ADAMS CORPORATION Income Statements Year Ze $ 1,299,000 $1,004,500 798,885 $ 500,115 301,000 199,115 61,600 137.515 S 602,700 401,800 195.500 206,300 52,700 153,600 Percentage Channe 1% %

Exercise 14-1A (Algo) Horizontal analysis LO 14-1 Adams Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Adams Corporation's income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 234 should be entered as 23.4). Sales Cost of goods sold Gross margin Operating expenses Income before laxes Income taxes Net income (loss) ADAMS CORPORATION Income Statements Year Ze $ 1,299,000 $1,004,500 798,885 $ 500,115 301,000 199,115 61,600 137.515 S 602,700 401,800 195.500 206,300 52,700 153,600 Percentage Channe 1% %

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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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 $…
#becausesneaker.... HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Custom Order Sales Cost of merchandise sold Selling expenses a. Prepare an income statement in comparative form, statin each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Administrative expenses Income tax expense $483,000 280,140 82,110 86,940 14,490 Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 percentage points, and administrative expenses net income as a percent of sales Current year Percent % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % Previous year Amount $420,000 218,400 79,800 71,400 21,000 Previous year Percent b.…
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Vertical Analysis Two income statements for Upward Company follow: Upward Company Income Statements For the Years Ended December 31 20Y5 20Y4 Fees earned $924,000 $784,000 Operating expenses 545,160 478,240 Income from operations $378,840 $305,760 a. Prepare a vertical analysis of Upward Company's income statements. Enter percents as whole numbers. Upward Company Income Statements For the Years Ended December 31 20Y5 Amount 20Y5 Percent 20Y4 Amount 20Y4 Percent Fees earned $924,000 100 % $784,000 100 % 545,160 0X % 478,240 X % Operating expenses X % $305,760 X % Income from operations $378,840
ROI and Margin Arbus Company provided the following information: Turnover 1.3 Operating assets $106,000 Operating income 6,620 Required: 1. What is ROI? (Round your answer to three decimals.) 0.062 ✓ 2. What is margin? (Round your answer to two decimals.) X Feedback
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Subject: acounting
View Policies Current Attempt in Progress A company has the following balances: Sales revenue $312.000: Sales Returns and Allowances $2.000: Sales Discounts $4,000: Cost of Goods Sold $184,000: Operating Expenses $84,000. Assume there are no other revenues, other expenses, or income tax expense. How much is the profit margin? O 16.0% O 12.2% O 12.4% O 41.0 % eTextbook and Media Hint 4 ! Save for Later Using multiple attempts will impact your score 10% soore reduction after attempt 1 Attempts; unlimited Submit Answer
Question Content Area Hsu Company reported the following on its income statement: Income before income taxes $325,364 Income tax expense 97,609 Net income $227,755 Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.4.42 times b.3.1 times c.2.1 times d.5.42 times
Exercise 14-3A (Algo) Horizontal and vertical analysis LO 14-1 Income statements for Rundle Company for Year 3 and Year 4 follow: Sales Cost of goods sold Selling expenses BURCH COMPANY Income Statements Year 4 $ 201,400 143,000 Year 3 $ 181,400 121,000 20,400 12,700 18,400 14,700 3,600 5,600 $ 179,700 $ 159,700 21,700 6,400 21,700 3,300 $ 15,300 $ 18,400 Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Required a. Perform a horizontal analysis, showing the percentage change in each Income statement component between Year 3 and Y b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. Complete this question by entering your answers in the tabs below. Required A Required B 4. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year Note: Negative answers should be indicated by a minus sign. Round your answers to…