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Prepare the common-size financial statement for the entities below and provide a reasoned explanation of the benefits relative to ratios when used to compare performance and establish trends.

Prepare the common-size financial statement for the entities below and provide a reasoned explanation of the benefits relative to ratios when used to compare performance and establish trends.

FINANCIAL ACCOUNTING
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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Prepare the common-size financial statement for the entities below and provide a reasoned explanation of the benefits relative to ratios when used to compare performance and establish trends. Income Statements for year ending 31 December 2022 Timber Co. ltd $.000 Biscuit Co. Ltd. $'000 35,119 30,990 12.693 11.088 22,426 13,158 Net revenue Cost of goods sold Gross profit Selling & administrative expenses Other operating expenses Operating income Interest income Other income (net of expenses) Profits before tax Income tax expense Profits after taxes 819 8,449 833 6,447 14,193 2.384 11,809 19,902 11,358 313 8,231 355 988 8,864 2,040 6,824
Transcribed Image Text:Prepare the common-size financial statement for the entities below and provide a reasoned explanation of the benefits relative to ratios when used to compare performance and establish trends. Income Statements for year ending 31 December 2022 Timber Co. ltd $.000 Biscuit Co. Ltd. $'000 35,119 30,990 12.693 11.088 22,426 13,158 Net revenue Cost of goods sold Gross profit Selling & administrative expenses Other operating expenses Operating income Interest income Other income (net of expenses) Profits before tax Income tax expense Profits after taxes 819 8,449 833 6,447 14,193 2.384 11,809 19,902 11,358 313 8,231 355 988 8,864 2,040 6,824
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