ncome statements for Adams Company for Year 3 and Year 4 follow: ADAMS COMPANY Income Statements Year 4 Year 3 Sales $ 200,900 $ 180,900 Cost of goods sold 143,800 121,800 Selling expenses 20, 100 18, 100 Administrative expenses 13,000 15,000 Interest expense 4,000 6,000 Total expenses $ 180,900 $ 160,900 Income before taxes 20,000 20,000 Income taxes expense 6,400 3,100 Net income $ 13,600 $ 16,900 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.

ncome statements for Adams Company for Year 3 and Year 4 follow: ADAMS COMPANY Income Statements Year 4 Year 3 Sales $ 200,900 $ 180,900 Cost of goods sold 143,800 121,800 Selling expenses 20, 100 18, 100 Administrative expenses 13,000 15,000 Interest expense 4,000 6,000 Total expenses $ 180,900 $ 160,900 Income before taxes 20,000 20,000 Income taxes expense 6,400 3,100 Net income $ 13,600 $ 16,900 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.

Name: ncome statements for Adams Company for Year 3 and Year 4 follow: ADAM
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: ncome statements for Adams Company for Year 3 and Year 4 follow: ADAMSCOMPANY Income Statements Year 4 Year 3 Sales $ 200,900 $ 180,900 Cost ofgoods sold 143,800 121,800 Selling expenses 20, 100 18,100 Administrativeexpenses 13,000 15,000 Interest e

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PLEASE ANSWERED WITH IN THE FORMAT BY PROVIDING FORMULA IN DETAILS Income statements for Thornton Company for Year 3 and Year 4 follow. THORNTON COMPANY Income Statements Year 4 Year 3 Sales $200,900 $180,900 Cost of goods sold 142,300 120,300 Selling expenses 21,600 19,600 Administrative expenses 12,500 14,500 Interest expense 3,200 5,200 Total expenses $179,600 $159,600 Income before taxes 21,300 21,300 Income taxes expense 6,300 3,800 Net income $15,000 $17,500 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. PLEASE PROVIDE ANSWER IN TEXT
The income statement for Rhino Company for the current year ended June 30 is as follows: 1 Sales $450,000.00 2 Cost of merchandise sold 151,700.00 3 Gross profit $298,300.00 4 Operating expenses: 5 Depreciation expense $37,780.00 6 Other operating expenses 115,450.00 7 Total operating expenses 153,230.00 8 Income before income tax $145,070.00 9 Income tax expense 39,310.00 10 Net income $105,760.00 The balances of selected accounts at the beginning and the end of the current year are as follows: End Beginning of Year of Year Accounts receivable (net) $36,230 $31,850 Inventories 93,760 81,240 Prepaid expenses 14,670 15,660 Accounts payable (merchandise creditors) 67,950 63,470 Accrued expenses payable (operating expenses) 19,130 20,560 Income tax payable 4,390 4,390 Prepare the Cash Flows from Operating…
Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 2021 Sales $ 562,795 2019 $ 299,200 338,803 Cost of goods sold Gross profit 191,488 223,992 107,712 Selling expenses 79,917 39,494 Administrative expenses 50,652 24,834 Total expenses 130,569 64,328 Income before taxes 93,423 43,384 Income tax expense 17,377 8,807 Net income $ 76,046 $ 34,577 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 Assets Current assets $ 38,127 $ 56,965 0 Long-term investments 700 97,740 Plant assets, net Total assets 107,436 $164,401 $ 136,567 Liabilities and Equity Current liabilities $ 20,348 Common stock 68,000 $ 24,003 68,000 8,500 63,898 Other paid-in capital 8,500 Retained earnings 39,719 Total liabilities and equity $164,401 $ 136,567 2020 $431,147 273,778 157,369 59,498 37,941 97,439 59,930 12,286 $ 47,644 2019 $ 50,967 4,550 57,629 $ 113,146 $ 19,801 50,000 5,556 37,789 $113,146 4
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $541,800 $430,000 Cost of goods sold 458,800 370,000 Gross profit $83,000 $60,000 Selling expenses $24,360 $21,000 Administrative expenses 21,080 17,000 Total operating expenses $45,440 $38,000 Income before income tax $37,560 $22,000 Income tax expenses 15,000 8,800 Net income $22,560 $13,200 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $541,800 $430,000 % Cost of goods sold 458,800 370,000 Gross profit $83,000 $60,000 % Selling expenses $24,360 $21,000 % Administrative expenses 21,080 17,000 % Total operating expenses…
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $418,200 $340,000 Cost of goods sold 350,900 290,000 Gross profit $67,300 $50,000 Selling expenses $19,210 $17,000 Administrative expenses 16,940 14,000 Total operating expenses $36,150 $31,000 Income before income tax $31,150 $19,000 Income tax expenses 12,500 7,600 Net income $18,650 $11,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 CurrentyearAmount PreviousyearAmount Increase(Decrease)Amount Increase(Decrease)Percent Sales $418,200 $340,000 $fill in the blank…
Income statements for Burch Company for Year 3 and Year 4 follow: BURCH COMPANY Income Statements Year 4 Year 3 $200,000 124,000 20,000 18,000 $240,000 180,000 Sales Cost of goods sold Selling expenses Administrative expenses 26,000 12,000 7,500 $225,500 14,500 1,200 $ 13,300 8,000 $170,000 30,000 3,000 $ 27,000 Interest expense Total expenses Income before taxes Income taxes expense 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 8 Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. (Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place, (i.e., 0.234 should be entered as 23.4).) BURCH…
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 470,015 Income before taxes $3,670,035 Income taxes 1,461,214 Net income $2,208,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.times
Horizontal analysis of the income statement income statement data for Winthrop company for two recent years ended December 31st are as follows. Sales Cost of goods Gross profit Selling expenses Administrative expenses Total operating expense Income before income tax expense Income tax expense Net income Current year 2,240,000 sales (1,925,000) no cost of goods $315,000 gross profit $ (152,500) selling expenses 118,000 administrative expenses $(270,500) total operating expense $44,500 income before tax expense (17,800) income tax expense $26,700 net income Previous year $2,000,000 sales (1,750,000) cost of goods $250,000 gross profit ($125,000) selling expenses (100,000) administrative expenses ($225,000) total operating expense $25,000 income before income tax expense ( 10,000) income tax expense $15,000 A. Prepare a comparative income statement with horizontal analysis Tama indicated the increase and decrease for the current year when compared with the…
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
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 463,015 Income before taxes $3,677,035 Income taxes 1,461,214 Net income $2,215,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.fill in the blank 1
Horizontal Analysis of the Income Statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales $536,800 $440,000 Cost of merchandise sold 444,000 370,000 Gross profit $92,800 $70,000 Selling expenses $25,760 $23,000 Administrative expenses 22,800 19,000 Total operating expenses $48,560 $42,000 Income before income tax expense $44,240 $28,000 Income tax expenses 17,700 11,200 Net income $26,540 S16,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Increase Increase (Decrease) Previous year year (Decrease)
Operating data for Sheridan Corporation are presented as follows. Net sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income Net sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income taxes Income tax expense $ 2027 Prepare a schedule showing a vertical analysis for 2027 and 2026. (Round percentages to 1 decimal place, e.g. 12.1%.) Net income $ $842,800 530,964 126,420 80,066 37,926 67,424 2026 Amount $645,500 413,120 77,460 50,349 25,820 78,751 2027 SHERIDAN CORPORATION Condensed Income Statements For the Years Ended December 31 Percent % % % % % % % % $ % $ Amount 2026 Percent Ih SUPP