#becausesneaker....HW CH 17Vertical Analysis of Income StatementRevenue and expense data for Innovation Quarter Inc. for two recent years are as follows:Current YearPrevious YearSalesCost of merchandise soldSelling expensesAdministrative expensesIncome tax expenseCustom OrderSalesCost of merchandisesoldSelling expensesa. Prepare an income statement in comparative form, statin each item for both years as a percent ofsales. If required, round percentages to one decimal place. Enter all amounts as positivenumbers.AdministrativeexpensesIncome tax expense$483,000280,14082,11086,94014,490Innovation Quarter Inc.Comparative Income StatementFor the Years Ended December 31Current yearAmount$483,000280,14082,11086,94014,490percentage points, and administrative expensesnet income as a percent of salesCurrent yearPercent%%%%%%$420,000218,40079,80071,40021,000%%%Previous yearAmount$420,000218,40079,80071,40021,000Previous yearPercentb. The vertical analysis indicates that the cost of merchandise sold as a percent of salesby 6 percentage points, while selling expenses%%%%%%%%%?by 2by 1 percentage points. Thus,by 3 percentage points.

The income statement is prepared to estimate the net income or loss incurred during the period.…

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 Sales Cost of merchandise sold Selling expenses Administrative expenses a. Prepare an income statement in comparative form, stating each item for both years as a perces sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. 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 14,490 000 Current year Percent percentage points, and administrative expenses ( net income as a percent of sales % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % BE $ Previous year Amount $420,000 218,400 79,800 71,400 21,000 b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 6 percentage points, while selling expenses ( Previous y Percent by 3 percentage points. % % % % % % % 0 O by 1 percentage poir

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 Sales Cost of merchandise sold Selling expenses Administrative expenses a. Prepare an income statement in comparative form, stating each item for both years as a perces sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. 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 14,490 000 Current year Percent percentage points, and administrative expenses ( net income as a percent of sales % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % BE $ Previous year Amount $420,000 218,400 79,800 71,400 21,000 b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales by 6 percentage points, while selling expenses ( Previous y Percent by 3 percentage points. % % % % % % % 0 O by 1 percentage poir

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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Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $62,500). Inventory turnover is 5 (average inventory is $7,800). Accounts receivable turnover is 8 (average accounts receivable is $7,700). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 8800 Income tax expenses 3800 Net Income
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Pint item Segment Analysis Verity Company does business in two customer segments: Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information: 20Y5 20Υ4 Retail $145,400 $138,500 Wholesale 173,100 189,300 Total revenue $318,500 $327,800 Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers. Verity Company Horizontal Analysis For the Years 20Y4 and 20Y5 20Y5 20Y4 Difference - Amount Difference - Percent Retail $145,400 $138,500 Wholesale 173,100 189,300 Total revenue $318,500 $327,800 Prepare a vertical analysis of the segments. If required, round percentages to one decimal place. Verity Company Vertical Analysis For the Years 20Y4 and 20Y5 20Y5 Percent 20Y4 Amount 20Y4 Percent 20Y5 Amount $138,500 Retail $145,000 189,300 Wholesale 173,100 $327,800 Total revenue $318,500 Check My Work Save and Exit Email Instructor All work saved.
Problem 17-2A 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, 2017, 2016, and 2015 2017 2016 2015 $ 396,891 238,928 157,963 56,359 $ 304,051 191,248 112,803 41,959 26,756 $ 211,000 135,040 75,960 27,852 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses 35,720 92,079 65,884 12,254 17,513 45,365 30,595 Total expenses 68,715 44,088 9,038 Income before taxes Income taxes 6,211 Net income $ 53,630 $ 35,050 $ 24,384 KORBIΝ COMPΑNY Comparative Balance Sheets December 31, 2017, 2016, and 2015 2017 2016 2015 Assets $ 49,213 $ 38,503 1,200 95,481 Current assets $ 51,470 Long-term investments 4,100 90,003 $ 139,216 56,430 $ 112,000 Plant assets, net Total assets $ 135,184 Liabilities and Equity $ 20,326 67,000 8,375 43,515 20,142 67,000 8,375…
1. Utilize the comparative income statement for the amounts needed. Al-Can Products, Inc. Comparative Income Statement For Years Ended December 31, 20xx and 20xx Net Sales Cost of Merchandise Sold Gross Profit on Operations Total Operating Expenses Net Income Before Federal Income Tax Federal Income Tax Expense Net Income After Federal Income Tax Total Stockholders' Equity Net Sales Net Income After Tax Stockholders' Equity CURRENT YEAR Amount $426,500.00 $268,700.00 $157,800.00 $110,800.00 $47,000.00 $7,100.00 $39,900.00 $195,000.00 2. Calculate the amount and percent of increase or decrease from the prior year to the current in the table below. State whether the trend is favorable or unfavorable. Increase (Decrease) PRIOR YEAR Percent $346,800.00 $245,200.00 $101,600.00 $85,200.00 $16,400.00 $2,500.00 $13,900.00 $186,000.00 Trend
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Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data: Total assets turnover: 1.6 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30% Total liabilities-to-assets ratio: 35% Quick ratio: 1.20 Days' sales outstanding (based on 365-day year): 36.5 days Inventory turnover ratio: 3.25 Do not round intermediate calculations. Round your answers to the nearest whole dollar. Partial Income Statement Information Sales Cost of goods sold $ 640,000 448,000 Balance Sheet Assets Cash Accounts payable Liabilities and Equity $ 90,000 Accounts receivable 64,000 Long-term debt 50,000 Inventories Common stock Fixed assets Retained earnings 100,000 Total assets $ 400,000 Total liabilities and equity $
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40 The following information is taken from the financial statements of Clybourn Company for the current year: Current Assets $408,000 Total Assets 903,000 Cost of Goods Sold 663,000 Gross Profit 213,000 Net Income 133,000 On a common size income statement for the year, what is the percentage that would be shown next to the dollar amount of sales revenue? Multiple Choice 100% 15% 62% O Cannot be determined
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