Financial Statement Notes: Quarterly DataQuarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Requireda. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent. FirstQuarter SecondQuarter ThirdQuarter FourthQuarter a. Company A annual net sales percent Answer Answer Answer Answer b. Company B annual net sales percent Answer Answer Answer Answer c. Which company has the most seasonal business?Answerd. Which Company is Gibson Greetings?AnswerWhich Company is Hon Industries, Inc.?Answere. Which company's interim quarterly data are probably most useful for predicting annual results?Answer

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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Financial Statement Notes: Quarterly Data
Quarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis.

	(Amounts in Thousands)
	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Year
Company A
Net sales	$186,111	$177,537	$203,070	$213,608	$780,326
Gross profit	55,457	53,643	64,024	69,374	242,498
Company B
Net sales	$84,896	$83,796	$142,137	$235,336	$546,165
Gross profit	53,900	52,983	66,018	104,961	277,862

Required
a. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.
b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent.

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
a. Company A annual net sales percent	Answer	Answer	Answer	Answer
b. Company B annual net sales percent	Answer	Answer	Answer	Answer

c. Which company has the most seasonal business?

Answer

d. Which Company is Gibson Greetings?

Answer

Which Company is Hon Industries, Inc.?

Answer

e. Which company's interim quarterly data are probably most useful for predicting annual results?

Answer

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