A comparative income statement follows for Martine Ltd. of Montreal:MARTINE LTD.Comparative Income StatementFor the Years Ended October 31, Year 1 and Year 2SalesLess: Cost of goods soldGross marginLess: Operating expenses:Selling expensesAdministrative expensesTotal expensesNet operating incomeLess: Interest expenseNet income before taxesYear 2 Year 1Ss8,050,0005,095,6502,954,3501,529,500756,7002,286,200668,150136,850531,300$ 6,050,0003,605,8002,444,2001,131,350726,0001,857,350586,850114,950$ 471,900Members of the company's board of directors are surprised to see that net income increased by only $59,400when sales increased by $2,000,000.Required:1. Express each year's income statement in common-size percentages. (Round your answers to 1 decimalplace.)

Lets understand the basics.Income statement analysis can be made using,(1) Verticle analysis(2)…

Answered: MARTINE LTD. Comparative Income…

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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Use the following to answer questions 34 – 39 ST reports the following income statement results: $700,000 221,575 Sales Operating expense Net income 48,800 Sales returns & allowances 25,000 Gross profit 282,825 Interest expense 250 34. $ Calculate Net sales: 35. Calculate Cost of Goods Sold Calculate operating 36. income 37. $ Calculate Income before Income tax (IBT) %. Calculate the gross profit 38. margin (one decimal place) %. Calculate the net profit margin (one 39. decimal place)
Find in Amount ($) and Percentage(%) for Year 2 over Year 1: Income Statement - (a) Sales Revenue (b) Cost of sales (c) Gross Margin
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses come Statement L Administrative expenses Total expenses Net operating income Interest expense Net income before taxes $ This Year 7,350,000 4,750,000 2,600,000 1,386,000 708,000 2,094,000 506,000 98,000 $408,000 Last Year. $ 5,586,000 3,512,500 2,073,500 1,081,500 608,000 1,689,500 384,000 89,000 $ 295,000 Members of the company's board of directors are surprised to see that net income increased by only $113,000 when sales increased by $1,764,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e..
Supply the missing dollar amounts for the income statement of Williamson Company for each of the following independent cases: Sales Revenues, gross Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit $ Case A 8,500 200 6,000
A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes This Year $ 7,300,000 4,640,000 2,660,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 1,391,000 702,500 2,093,500 566,500 106,000 $ 460,500 Members of the company's board of directors are surprised to see that net income increased by only $204,000 when sales increased by $1,752,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year % % % Last Year $…
Income statements for Rundle Company for Year 3 and Year 4 follow: RUNDLE COMPANY Income Statementa Sales Cost of gooda sold Selling expenses Administrative expenses Interent expense Total expenses Income before taxes Income taxes expense Year 4 $201,100 142,000 21,200 12,900 3,000 $179,100 22,000 6,900 $15,100 Year 3 $181,100 *120,000 19,200 14,900 5,000 $159, 100 22,000 3,100 $ 18,900 Net income Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. 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
In a common-sized income statement, 100% is the a. net cost of goods sold b. gross profit c. sales d. net income
Rahul
The following percentages apply to Rooney Company for Year 3 and Year 4: Sales Cost of goods sold Gross margin Selling and administrative expense Interest expense Total expenses Income before taxes Income tax expense Net income ROONEY COMPANY Income Statements Sales Cost of goods sold Gross margin Selling and administrative expenses Interest expense Total expenses Income before taxes Income tax expense Net income Required Assuming that sales were $505,000 in Year 3 and $600,000 in Year 4, prepare income statements for the two years. Year 4 100.0 % 61.1 38.9 26.2 2.4 Year 4 28.6 10.3 5.3 5.0 % Year 3 100.0 % 64.1 35.9 20.5 1.9 22.4 13.5 7.0 6.5 % Year 3
A company reported the following: Cost of Goods Sold General, Selling, and Administrative Expenses Income Tax Expense Inventory Net Income Sales Revenue Sales Discounts Sales Returns & Allowances What is the amount of gross profit? Multiple Choice $108,360 $98,950 $121,000 $203, 200 53,120 3,920 16,500 26,080 292,000 3,040 2,640
A comparative income statement follows for Martine Ltd. of Montreal: MARTINE LTD. Comparative Income Statement For the Years Ended October 31, Year 1 and Year 2 Year 2 Year 1 Sales $ 8,050,000 $ 6,050,000 Less: Cost of goods sold 5,095,650 3,605,800 Gross margin 2,954,350 2,444,200 Less: Operating expenses: Selling expenses 1,529,500 1,131,350 Administrative expenses 756,700 726,000 Total expenses 2,286,200 1,857,350 Net operating income 668,150 586,850 Less: Interest expense 136,850 114,950 Net income before taxes $ 531,300 $ 471,900 Members of the company's board of directors are surprised to see that net income increased by only $59,400 when sales increased by $2,000,000. Required: 1. Express each year’s income statement in common-size percentages. (Round your answers to 1 decimal place.)
Required information The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the rear ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense $ 171,000 19,530 252,000 44,400 19,600 7,410 42,600 the gross profit percentage in the current year improve, or decline, relative to 39% gross profit percentage in the prior year? > Improve > Decline

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