Revenue and expense data for Bluestem Company are as follows: Administrative expenses Cost of goods sold Income tax expense Sales Selling expenses Year 2 $37,000 350,000 40,000 800,000 150,000 Year 1 a. Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. Round percents to one decimal point. Bluestem Company Total operating expenses $ $ There was Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 $20,000 320,000 32,000 700,000 110,000 Year 2 Year 2 Amount Percent % % Year 1 Year 1 Amount Percent %%$ % $ % $ P % % % % % % % b. Comment upon significant changes disclosed by the comparative income statement. in the cost of goods sold, and in cost of goods sold and contributed greatly to the in administrative expenses. However, the more significant in net income. in selling expenses offset the

Revenue and expense data for Bluestem Company are as follows: Administrative expenses Cost of goods sold Income tax expense Sales Selling expenses Year 2 $37,000 350,000 40,000 800,000 150,000 Year 1 a. Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. Round percents to one decimal point. Bluestem Company Total operating expenses $ $ There was Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 $20,000 320,000 32,000 700,000 110,000 Year 2 Year 2 Amount Percent % % Year 1 Year 1 Amount Percent %%$ % $ % $ P % % % % % % % b. Comment upon significant changes disclosed by the comparative income statement. in the cost of goods sold, and in cost of goods sold and contributed greatly to the in administrative expenses. However, the more significant in net income. in selling expenses offset the

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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Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,320,000 100 % Cost of merchandise sold 1,624,000 73 Gross profit $696,000 27 % Selling expenses $394,400 15 % Administrative expenses 162,400 Total operating expenses $556,800 21 % Income from operations $139,200 6 % Other revenue and expense: Other revenue 46,400 2 Other expense (23,200) Income before income tax expense $162,400 7 % Income tax expense 69,600 Net income $92,800 3 %
Horizontal Analysis of the Income Statement Income statement data for Boone Company for the years ended December 31, 20Y5 and 20Y4, are as follows: 20Υ5 20Υ4 Sales $673,200 $510,000 Cost of goods sold (572,000) (440,000) Gross profit $101,200 $70,000 Selling expenses $(30,500) $(25,000) Administrative expenses (27,300) (21,000) Total operating expenses $(57,800) $(46,000) Income before income tax $43,400 $24,000 Income tax expenses (17,400) (9,600) Net income $26,000 $14,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round percentage answers to one decimal place. Boone Company Comparative Income Statement For the Years Ended December 31, 20Y5 and 20Y4 20Y5 Amount 20Y4 Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $673,200 $510,000 % Cost of goods sold (572,000) (440,000) Gross profit $101,200 $70,000 % Selling expenses $(30,500) $(25,000) Administrative expenses (27,300)…
The following percentages apply to Zachary 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 ZACHARY 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 $515,000 in Year 3 and $585,000 in Year 4, prepare income statements for the two years. $ Year 4 100.0 % 61.1 38.9 26.5 2.7 29.2 9.7 5.5 4.2 % Year 4 0 0 0 $ Year 3 100.0 % 63.9 36.1 20.3 1.9 Year 3 22.2 13.9 7.2 6.7 % 0 0 0
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?
The following data were extracted from the income statement of Brecca Systems Inc.: Current Year Preceding Year Sales $1,533,000 $1,377,915 Beginning inventories 150,275 135,275 Cost of goods sold 876,000 835,100 Ending inventories 124,275 150,275 a. (1). Determine for each year the inventory turnover. Round to one decimal place. Current year fill in the blank 1 Preceding year fill in the blank 2 (2). Determine for each year the number of days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Current year fill in the blank 3 days Preceding year fill in the blank 4 days
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…
Ratio Analysis of Comparative Financial Statements Amounts from the comparative income statement and balance sheet of Miller Electronics Corporation for the last two years are as follows: Miller Electronics CorporationComparative Income StatementFor Years Ended December 31, 20-2 and 20-1 20-2 20-1 Net Sales (all on account) $643,800 $415,800 Cost of goods sold 387,260 254,650 Gross profit $256,540 $161,150 Administrative expenses $63,715 $41,626 Selling expenses 66,780 44,317 Total operating expenses $130,495 $85,943 Operating income $126,045 $75,207 Interest expense 1,316 1,241 Income before income taxes $124,729 $73,966 Income tax expense 30,895 13,143 Net income $93,834 $60,823 Miller Electronics CorporationComparative Balance SheetDecember 31, 20-2 and 20-1 20-2 20-1 Assets Current assets: Cash $42,848…
Revenue and expense data for Young Technologies Inc. are as follows: Year 2 Year 1 Sales $500,000 $440,000 Cost of merchandise sold 325,000 242,000 Selling expenses 70,000 79,200 Administrative expenses 75,000 70,400 Income tax expense 10,500 16,400 Required: Question Content Area a. Prepare an income statement in comparative form, stating each item for both years as an amount and as a percent of sales. Round percentage amounts to nearest whole percent. Young Technologies Inc.Comparative Income StatementFor the Years Ended December 31, Year 2 and Year 1 Year 2 Amount Year 2 Percent Year 1 Amount Year 1 Percent $- Select - - Select -% $- Select - - Select -% - Select - - Select - - Select - - Select - $- Select - - Select -% $- Select - - Select -% $- Select - - Select -% $- Select - - Select -% - Select - - Select - - Select - - Select - Total expenses $fill in the blank 86d00500602205c_26 fill in the…
View Policies Current Attempt in Progress Assume Sunland Company has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000, Cost of goods sold $649.599, and Operating expenses $215,600. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit S (c) Compute income from operations.
Income statements for Walton Company for Year 3 and Year 4 follow: WALTON COMPANY Income Statements Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Income taxes expense Net income Required A Required B Year 4 $200, 300 143,300 20,900 12,900 3,200 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. Sales Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses Income before taxes Complete this question by entering your answers in the tabs below. Income taxes expense Net income (loss) $180,300 $160,300 20,000 20,000 3,300 5,600 $ 14,400 $ 16,700 WALTON COMPANY Horizontal Analysis of Income Statements Perform a horizontal analysis, showing the percentage change in each income statement…
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. Yes