ForkSavedExpress the following comparative income statements in common-size percents. Using the common-size percents, which item is mostresponsible 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.Note: Round your percentage answers to 1 decimal place.GOMEZ CORPORATIONComparative Income StatementsFor Years Ended December 31Current Year $Current Year %Prior Year $Prior Year %Sales$775,000$635,000Cost of goods sold570,800284,400Gross profit204,200350,600Operating expenses129,200248,000Net income$75,000$102,600

The objective of the question is to express the comparative income statements in common-size…

Answered: Fork Saved Express the following…

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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Required: 1. Complete the following columns for each item in the comparative financial statements (Negative answers shoul be indicated by a minus sign. Round percentage answers to 2 decimal places, i.e., 0.1243 should be entered as 12.43.): Increase (Decrease) Year 2 over Year 1 Amount Percentage Statement of earnings: Sales revenue Cost of sales Gross margin Operating expenses and interest expense Earnings before income taxes Income tax expense Net earnings $ 45,770 38,650 7,120 4,020 3,100 1,050 $ 2,050 Statement of financial position: Cash (4,720) Accounts receivable (net) (4,220) Inventory 6,200 Property, plant, and equipment (net) 6,380 $ 3,640 Current liabilities (3,840) Long-term debt 3,530 Common shares 0 Retained earnings 3,950 $ 3,640
A condensed income statement for Stock Storage and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. 2. Does Stock's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Stock"s net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) STOCK STORAGE Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues $ 2,090 100 % $ 2,170 100 % Cost of Goods Sold 1,697 81 % 1,661 % Selling, General, and Administrative Expenses 285 % 286 13 % Other Operating Expenses 51 2 %…
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Express the following comparative income statements in common-size percents. C esponsible 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. Note: 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 % 100.0 Current Year S $ $ 740,000 568,100 171,900 128,000 43,900 Prior Year $ $ $ 690,000 291,000 399,000 226,400 172,600 Prior Year % Reason for Decline in Not Ing
Performing horizontal analysis—income statement Data for Mulberry Designs, Inc. follow: Requirements Prepare a horizontal analysis of the comparative income statement of Mulberry Designs, Inc. Round percentage changes to one decimal place. Why did 2018 net income increase by a higher percentage than net sales revenue?
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. Note: Round your percentage answers to 1 decimal place. GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 725,000 100.0 $ 665,000 Cost of goods sold 562,700 1.0 291,000 Gross profit 162,300 0.4 374,000 Operating expenses 129,200 268,400 Net income 33,100 $ 105,600 Income Statement Reason for Decline in Net Income >
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For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current Year is usually regarded as favorable or unfavorable. Ratio 1. Profit margin 2. Debt ratio 3. Gross margin 4. Acid-test ratio 5. Accounts receivable turnover 6. Basic earnings per share 7. Inventory turnover 8. Dividend yield Current Year Prior Year Change 9% 8% 47 % 42 % 34 % 46 % 1.00 1.15 5.5 6.7 $ 1.25 $ 1.10 3.6 3.4 2.0 % 1.2 %
Complete the comparative income statement and balance sheet for Logic Company. Note: Input all answers as positive values except decrease answers which should be indicated by a minus sign. Round your "percent" answers to the nearest hundredth percent.
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
Using the following selected items from the comparative balance sheet of Oriole Products.Determine the horizontal analysis. (Round percentages to 2 decimal places, e.g. 12.21%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) ORIOLEPRODUCTSComparative Balance SheetDecember 31 2014 2013 Horizontal analysis Amount Percentage Amount Percentage Current assets $110,880 enter percentages % $128,216 enter percentages % Long-term assets 174,240 enter percentages % 117,304 enter percentages % Total assets 3,168,000 enter percentages % 2,728,000 enter percentages % Determine the vertical analysis. (Round percentages to 1 decimal place, e.g. 12.2%.) ORIOLEPRODUCTSComparative Balance SheetDecember 31 2014 2013 Vertical analysis Amount Percentage Amount Percentage Current assets $110,880…

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