**Exercise 17-4 (Algo) Computing and Interpreting Common-Size Percents LO P2**This exercise focuses on expressing comparative income statements in common-size percents, which helps identify the item most responsible for a decline in net income.**Instructions:**Complete the question by entering your answers in the tabs provided.**Main Objective:**Express the following comparative income statements in common-size percents. (Remember to round your percentage answers to one decimal place.)---**GOMEZ CORPORATION****Comparative Income Statements***For Years Ended December 31*| Item | Current Year $ | Current Year % | Prior Year $ | Prior Year % ||-------------------------------|----------------|----------------|--------------|--------------|| Sales | $780,000 | | $660,000 | || Cost of Goods Sold | $560,000 | | $295,400 | || Gross Profit | $220,000 | | $364,600 | || Operating Expenses | $130,400 | | $251,600 | || Net Income | $89,600 | | $113,000 | |**Tabs:**1. **Income Statement** - Input areas for entering common-size percentages for each line item.2. **Reason for Decline in Net Income** - Analyze the common-size percentages to determine which item is most responsible for the decline in net income.This exercise will help students understand how common-size analysis can reveal important insights into financial performance and identify key areas affecting profitability. **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?**Instructions:**Complete this question by entering your answers in the tabs below.**Tabs:**- **Income Statement**- **Reason for Decline in Net Income****Prompt:**Using the common-size percents, which item is most responsible for the decline in net income?---**Input Box:***Using the common-size percents, which item is most responsible for the decline in net income?* [__________]**Navigation Button:**- **< Income Statement**- **Reason for Decline in Net Income >**

Name: **Exercise 17-4 (Algo) Computing and Interpreting Common-Size Percent
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: **Exercise 17-4 (Algo) Computing and Interpreting Common-Size Percents LO P2**This exercise focuses on expressing comparative income statements in common-size percents, which helps identify the item most responsible for a decline in net income.**Ins

Comparative income statement means the statement which is prepared in order to compare the…

Business

Accounting

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 >

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 >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Refer to the information for Cuneo Company above.Required:1. Prepare a common-size income statement for Year 2 by expressing each line item for Year2 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)2. Prepare a common-size income statement for Year 3 by expressing each line item for Year3 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)
Create a comparative financial statement from the following:
Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows: 20Y8 20Υ7 Sales $572,000 $503,000 Cost of goods sold 366,080 286,710 Selling expenses 80,080 85,510 Administrative expenses 91,520 100,600 Income tax expense 17,160 10,060 a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as a positive number. Rogan Technologies Co. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 20Y8 Amount 20Y8 Percent 20Y7 Amount 20Y7 Percent % % % % Gross profit % % % Total operating expenses % % % Net income
Complete this question by entering your answers in the tabs below. Analysis Analysis Bal Sheet Inc Stmt Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) Revenues Sales (net) Other revenues Total revenues Expenses Cost of goods sold FANNING COMPANY Vertical Analysis of Income Statements Year 4 Selling, general, and administrative expense Interest expense Income tax expense Total expenses Net income Amount $ 231,900 9,300 241,200 118,800 54,200 6,800 22,800 202,600 $ 38,600 Percentage of Total Analysis Bal Sheet % % Year 3 Amount $ 211,200 6,400 217,600 102,100 49,100 6,000 21,800 179,000 $ Percentage of Total % % 38,600 Analysis Inc Stmt > Show less
Comparative Income Statements Consider the following income statement data from the Mono Company: Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense 2019 2018 $600,000 $450,000 336,000 279,000 105,000 99,000 60,000 50,000 4,000 3,000 Prepare a contparative income statement, showing increases, and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). Sales Revenue Cost of Goods Sold MONO COMPANY Comparative Income Statements ♦ Selling Expenses Administrative Expenses Total Income before Income Taxes ◆ → $ $ 2019 0 $ 0 0 0 0 oooo 0 0 $ 2018 Increase (Decrease) 0 $ 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 Percent Change 0% 0% 0% 0% 0% 0% 0% 0% 0 %
Required information [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 $ 431,313 $ 330,421 259,650 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes. Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets 171,663 61,246 38,818 100,064 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity December 31 209,156 121,265 KORBIN COMPANY Comparative Balance Sheets 71,599 13,317 $ 58,282 $ 37,039 2021 45,598 29,077 74,675 46,590 9,551 $ 54,729 0 103,218 $ 157,947 $ 2019 229,300 146,752 82,548 30,268 19,032 49,300 33,248 6,749 $ 26,499 $ 19,550 71,000 8,875 31,781 2019 2020 $36,630 $ 48,966 700 93,876 $131,206 $ 108,704 4,660 55,078 $ 19,023…
The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes LANCASTER CORPORATION a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 223,000 155,000 $ 68,000 33,100 $ 34,900 13,400 $ 21,500 7,525 $ 13,975
Subject - Acounting
Rahul
You are asked to provided a comparative financial statement analysis of Star Corporation and Moon Stores Inc. for the the current year. Your junior accountant has collected the following data for you. Star Corp. Moon Stores Income Statement Net Sales 61,471 374,526 Cost of Goods Sold 41,895 286,515 Sell and Administrative expenses 16,200 70,847 Interest Expense Other income (expense) Income tax expense 647 1,798 1,896 4,273 1,776 $ 6,908 Net Income 2,849 $ 12,731 Balance Sheet Current Assets 18,906 47,585 Long-term Assets Total Assets 25,654 $ 44,560 115,929 163,514 Current Liabilities Long-term debt Total stockholders equity Total liabilities and equity 58,454 40,452 64,608 11,782 17,471 15,307 $ 44,560 $ 163,514 Beginning of the year balances Total assets 37,349 151,587 Total equity Current liabilities 15,633 61, 11,117 52,148 Total liabilities 21,716 90,014 Other data Average net accounts receivable Average inventory Net cash provided by operating activities 7,124 3,247 6,517 34,433…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. (Round percentages to two decimal places.) Year 2 Year 1 Revenues $394,000 $212,500 Operating expenses: Wages expense $ 79,000 $ 65,000 Rent expense 19,000 18,000 Utilities expense 21,000 14,200 Interest expense 7,500 7,800 Total operating expenses $126,500 $105,000 Net income $267,500 $107,500