Prepare a horizontal analysis of the income statement data for Pina Colada Corporation using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -12.1% or (55,000), (12.1%). Round percentages to 1 decimal place. eg. 12.1%) PINA COLADA CORPORATION Comparative Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income December 31, 2022 $766,000 493,000 273,000 144,000 $129,000 December 31, 2021 303,000 $470,000 $ 167.000 122,000 Increase or (Decrease) During 2022 $45,000 Amount Percentage

Prepare a horizontal analysis of the income statement data for Pina Colada Corporation using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -12.1% or (55,000), (12.1%). Round percentages to 1 decimal place. eg. 12.1%) PINA COLADA CORPORATION Comparative Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income December 31, 2022 $766,000 493,000 273,000 144,000 $129,000 December 31, 2021 303,000 $470,000 $ 167.000 122,000 Increase or (Decrease) During 2022 $45,000 Amount Percentage

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

Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) Sales Cost of goods sold Gross profit Operating expenses Net income GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % 720,000 $ 568,100 151,900 128,000 23,900 $ Prior Year $ $ $ 625,000 291,000 334,000 252,800 81,200 Prior Year %
Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Reason for Income Decline in Net Statement Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 760,000 100.0 $ 670,000 Cost of goods sold 565,400 291,000 Gross profit 194,600 379,000 Operating expenses 130,400 227,600 Net income $ 64,200 $ 151,400
A partial list of a common-size percentage for ABC Co. Ltd is given. Details December Current year December Previous year % % Sales 100 100 Cost of goods sold ? ? Gross profit on sales 40 ? Operating expense and income tax 20 25 Net income 20 10 a) Determine the missing common-size percentages b) Compute the net income for the current year Notes: Previous year net income is $20,000 Sales of current year is 120% of previous sales
b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 8 percentage points, while selling expenses - by 4 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 3 percentage points.
Vertical analysis (common-size) percentages for Baker Company’s sales revenue, cost of goods sold, and expenses are as follows. Did Baker’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer. Vertical Analysis 2020 2019 2018 Sales revenue 100.0% 100.0% 100.0% Cost of goods sold 60.0 63.9 65.0 Expenses 26.0 26.6 27.5
Refer to the information for Sundahl Company on the previous page.Required:1. Prepare a common-size income statement for Year 1 by expressing each line item as apercentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)2. Prepare a common-size income statement for Year 2 by expressing each line item as apercentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
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 $ 281,200 $ 232,400 Cost of goods sold 150,900 130,590 Operating expenses 54,240 52,240 Net earnings 29,020 20,820
Problem 17-2A (Algo) Ratios, common-size statements, and trend percents LO P1, [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 Sales: Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets 2020 $436,580 $ 334,456 262,821 173,759 61,994 39,292 Long-term investments Plant assets, net Total assets KORBIN COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 212,045 122,411 46, 155 101,286 72,473 13,480 $ 58,993 $ 37,225 29,432 75,587 46,824 9,599 2021 $ 54,789 0 100, 200 $154,989 $ 22,628 72,000 9,000 51,361 2019 $ 232,100 148,544 83,556 30,637 19,264 49,901 33,655 6,832 $ 26,823 2020 $36,670 900 91,178…
Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net income?
GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $490,000 $446,000 Cost of merchandise sold 289,100 231,920 Selling expenses 78,400 84,740 Administrative expenses 88,200 75,820 Income tax expense 14,700 22,300 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $490,000 % $446,000 % Cost of merchandise sold 289,100 % 231,920 % % % Selling expenses 78,400 84,740 % Administrative expenses 88,200 % 75,820 % % % Income tax expense 14,700 % 22,300 % % % b. The vertical analysis indicates that the cost of merchandise sold as a percent of sales - by 7 percentage points, while selling expenses by 3…
Assume the following sales data for a company: Current year $778,795 Preceding year 600,257 What is the percentage increase in sales from the preceding year to the current year?