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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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 $…
Anthony Corporation reported the folowing amounts for the year Net sales $296, 000 Cost of goods sold Average inventory 138, e00 50,000 Anthony's gross profit ratio is Mole Choce 53
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
income statement with percentages comparatively
Use the following selected information from Corolla to determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base. Year 2 Year 1 Net sales $ 277,700 $ 231,700 Cost of goods sold 151,600 129,890 Operating expenses 54,940 52,940 Net earnings 28,320 20,120 Multiple Choice 116.7% for Year 2 and 100.0% for Year 1. 54.6% for Year 2 and 56.1% for Year 1. 36.2% for Year 2 and 40.8% for Year 1. 65.6% for Year 2 and 64.6% for Year 1. 119.9% for Year 2 and 100.0% for Year 1.
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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.)
Domestic
Required information [The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: $ 175,000 20,700 260,000 46,000 20,000 7,650 44, 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 Required: 1. Prepare a multistep income statement for external reporting purposes.
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 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 This Year $ 7,400,000 4,730,000 2,670,000 This Year The company's board of directors is surprised to see net income increased by only $124,000 when sales increased by $1,776,000. Required: 1. Express each year's income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3). % % 0.0% 1,393,000 711,000 2,104,000 566,000 104,000 $ 462,000 % % 0.0 % 0.0 % % 0.0 % Last…

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