ContentBb 2193517+i learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5f7ce11c673e5/2193517?X-Blackboard-Expiration=1648004400000&X-Blackboard-Signature=JN20DGrMNpdS8d1. A ** Ow WordCounter - Co...y! YahooA Regions Bank | Che..Welcome, Justin – B.* eBooks, Textbooks...O Jefferson State Co...Electronics, Cars, Fa.C Home | Chegg.com21935171 / 1|100%+ |826Chapter 17 Financial Statement AnalysisProblems Series BPR 17-1B Horizontal analysis of income statementов. 1V 1. Net sales,30.0% increaseFor 2014, Macklin Inc. reported its most significant increase in net income in years. Atthe end of the year, John Mayer, the president, is presented with the following condensedcomparative income statement:1SPREADSHEETMacklin Inc.Comparative Income Statement2itilid For the Years Ended December 31, 2014 and 2013GENERALLEDGER20142013Sales .....$936,000$720,000Sales returns and allowances26,00020,000Net sales.....$910,000$700,000350,000441,000Cost of goods sold.Gross profit ...Selling expenses....$350,000$115,000$469,000$ 139,150Administrative expenses99,45085,000Total operating expensesIncome from operations$200,000$150,000$238,600$230,400Other income65,00050,000Income before income tax$295,400$200,000Income tax expense65,00050,000Net income$230,400$150,000Instructions1. Prepare a comparative income statement with horizontal analysis for the two-yearperiod, using 2013 as the base year. Round to one decimal place.To the extent the data permit, comment on the significant relationships re-vealed by the horizontal analysis prepared in (1).2.orosTros000 88 2amo000,20A000,0a1PR 17-2B Vertical analysis of income statementOBJ. 1V 1. Net income,For 2014, Fielder Industries Inc. initiated a sales promotion campaign that included the2013, 14.0%AEAS expenditure of an additional $40,000 for advertising. At the end of the year, Leif Grando,SPREADSHEETthe president, is presented with the following condensed comparative income statement:5:58 PMO Type here to search日Rain coming3/22/2022*.....

Net income is the excess of net sales over total expenses incurred in that particular financial…

Answered: PR 17-18 Horizontal analysis of income…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Problem 13-2A (Static) Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [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 2021 2020 2019 Sales $ 555,000 $ 340,000 $ 278,000 Cost of goods sold 283,500 212,500 153,900 Gross profit 271,500 127,500 124,100 Selling expenses 102,900 46,920 50,800 Administrative expenses 50,668 29,920 22,800 Total expenses 153,568 76,840 73,600 Income before taxes 117,932 50,660 50,500 Income tax expense 40,800 10,370 15,670 Net income $ 77,132 $ 40,290 $ 34,830 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets Current assets $ 52,390 $ 37,924 $ 51,748 Long-term investments 0 500 3,950 Plant assets, net 100,000 96,000 60,000 Total assets $ 152,390 $ 134,424 $ 115,698 Liabilities…
What advice would you give to Juirgen PROBLEM 17-19 Incomplete Statements; Analysis of Ratios [LO2, LO3, L04] Incomplete financial statements for Tanner Company are given below: Tanner Company Income Statement For the Year Ended December 31 Revenue. $2,700,000 Cost of goods sold.. Gross margin. Selling and administrative expenses . . ? Net operating income Interest expense 45,000 Net income before taxes ? Income taxes, 40%. ? Net income 2$ ? Scanned by CamScanı Financial Staterment Analysis 923 Tanner Company Balance Sheet. December 31 Non-current Assets: Plant and equipment, net Current assets: Accounts receivable, net . . Inventory.. Cash and cash equivalents. Total current assets $ ? Total assets $ ? Equity: Common stock, $2.50 par value Retained earnings Total equity . . .. Bonds payable, 10% Current liabilities ? $250,000 Total liabilities. ? Total equity and liabilities $ ? The following additional information is available about the company: Selected financial ratios computed…
Problem 16-17 (Static) Interpretation of Financial Ratios [LO16-2, LO16-3, LO16-6] Pecunious Products, Incorporated's financial results for the past three years are summarized below: Sales trend Current ratio Acid-test ratio Accounts receivable turnover Inventory turnover Dividend yield Dividend payout ratio Dividends paid per share* Year 3 128.0 2.5 9.4 6.5 7.1% 40% $1.50 Year 2 115.0 2.3 0.9 10.6 7.2 6.5% 50% $ 1.50 Year 1 100.0 2.2 1.1 12.5 8.0 5.8% 60% $ 1.50 *There have been no changes in common stock outstanding over the three-year period. Required: Review the results above and answer the following questions: 1. Is it becoming easier for the company to pay its bills as they come due? 2. Are customers paying their accounts at least as fast now as they were in Year 1? 3. Are the accounts receivable increasing, decreasing, or remaining constant? 4. Is inventory increasing, decreasing, or remaining constant? 5. Is the market price of the company's stock going up or down? 6. Is the…
Horizontal analysis of income statement For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: McDade Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 16,800,000 $ 15,000,000 Cost of goods sold (11,500,000) (10,000,000) Gross profit $ 5,300,000 $ 5,000,000 Selling expenses $ (1,770,000) $ (1,500,000) Administrative expenses (1,220,000) (1,000,000) Total operating expenses $ (2,990,000) $ (2,500,000) Operating income $ 2,310,000 $ 2,500,000 Other revenue 256,950 225,000 Income before income tax expense $ 2,566,950 $ 2,725,000 Income tax expense (1,413,000) (1,500,000) Net income $ 1,153,950 $ 1,225,000 1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place. For…
Problem 13-2A (Algo) 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 2021 2020 2019 $ 442,035 266,105 175,930 62,769 39,783 $ 338,635 212,324 126,311 46,732 29,800 76,532 49,779 10, 205 Sales $ 235,000 Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes 150,400 84,600 31,020 19,505 50,525 34,075 102,552 73,378 13,648 Income tax expense 6,917 Net income $ 59,730 $ 39,574 $ 27,158 KORBIN COMPANY Comparative Balance Sheets December 31 2021 2020 2019 Assets $ 55,578 $ 37,199 $ 49,726 4,570 56,095 Current assets Long-term investments Plant assets, net 900 104,820 95,143 Total assets $ 160,398 $ 133,242 $ 110,391 Liabilities and Equity $ 19,318 $ 23,418 68,000 8,500 60, 480 Current liabilities $ 19,853 Common…
Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 Skip to question [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, 2019, 2018, and 2017 2019 2018 2017 Sales $ 459,716 $ 352,180 $ 244,400 Cost of goods sold 276,749 223,282 156,416 Gross profit 182,967 128,898 87,984 Selling expenses 65,280 48,601 32,261 Administrative expenses 41,374 30,992 20,285 Total expenses 106,654 79,593 52,546 Income before taxes 76,313 49,305 35,438 Income tax expense 14,194 10,108 7,194 Net income $ 62,119 $ 39,197 $ 28,244 KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017 2019 2018 2017 Assets Current assets $ 58,718 $ 39,300…
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…
Problems in Financial Statement Analysis Shera Company just completed its second year of operations. The comparative income statements for these years a as follows: Prepare the horizontal analysis 2012 2013 Sales revenue Less: Cost of goods sold Gross margin $500,000 300,000 $200,000 80,000 20,000 $100,000 34,000 $66.000 $800,000 464,000 $336,000 Operating expenses Interest expense 164,000 20,000 $152,000 51,680 Income before taxes Income taxes Net Income $100.320 Selected information from the balance sheet for 2013 is also given. Prepare the vertical analysis Current assets $100,000 Long term 400,000 assets $500.000 $80,000 Total assets Current liabilities Long term liabilities 220,000 Total liabilities $300.000 $100,000 100,000 Common stock Retained earnings Total equity $200.000 Shera had 100,000 shares of stock outstanding. At the end of 2013, a share had a market value of $1.80. The shares outstanding have not changed since the original issue. Dividends of $30,000 were paid in…
Problem 19: Laiho Industries’s 2017 and 2018 balance sheets (in thousands of dollars are shown). Please show all work, and if using Excel please show the Excel sheet and all work!! a. Sales for 2018 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were 11% of net fixed assets, interest was $8,575,000, the corporate tax rate was 40%, and Laiho pays 40% of its net income as dividends. Given this information, construct the firm’s 2018 income statement. b. Construct the statement of stockholders’ equity for the year ending December 31, 2018, and the 2018 statement of cash flows. c. Calculate 2017 and 2018 net operating working capital (NWOC) and 2018 free cash flow (FCF). Assume the firm has no excess cash. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? What effect would this have on taxes paid by the company’s shareholders? (Answer part D in full, complete sentences) e. Assume the firm’s…
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3- Sammy Corporation reported net sales of S300,000, $330,000, and S360,000 in the years, 2015, 2016, and 2017, respectively. If 2015 is the base year, what is the trend percentage for 2017? А. 77%. В. 108%. C. 120%
15-7 DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2018 income state- ment (shown in thousands of dollars). Sales $15,300 Operating costs including depreciation 12,240 EBIT $ 3,060 Interest 330 EBT $ 2,730 1,092 Taxes (40%) Net income $ 1,638 Prior to reporting this income statement, the company wants to determine its annual divi- dend. The company has 320,000 shares of common stock outstanding, and its stock trades at $37 per share. a. The company had a 25% dividend payout ratio in 2017. If Brooks wants to maintain this payout ratio in 2018, what will be its per-share dividend in 2018? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the company's stock? c. The company reported net income of $1.35 million in 2017. Assume that the number of shares outstanding has remained constant. What was the company's per-share divi- dend in 2017? d. As an alternative to maintaining the same dividend payout ratio, Brooks is consider-…

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