Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below (as a %). (Round to nearest tenth.) *Chart is attached with the information* RevenueGross Sales$199,000Less: Sales Returns and AllowancesNet Sales11,600177,400Cost of Goods SoldMerchandise Inventory, Jan. 170,15058,300Net PurchasesGoods Available for Sale128,450Less: Merchandise Inventory, Dec. 3195,000Cost of Goods Sold43,450Gross Margin133,950

Vertical analysis is a technique of analyzing financial statements. In this analysis, every element…

Revenue Gross Sales $189,000 Less: Sales Returns and Allowances 11,600 177,400 Net Sales Cost of Goods Sold 70, 150 Merchandise Invantory, Jan. 1 Net Purchases 58.300 128,450 85,000 Goods Available for Sale Less: Merchandise Inventory, Dec. 31 Cost of Goods Sold 43,450 133,950 Gross Margin

Revenue Gross Sales $189,000 Less: Sales Returns and Allowances 11,600 177,400 Net Sales Cost of Goods Sold 70, 150 Merchandise Invantory, Jan. 1 Net Purchases 58.300 128,450 85,000 Goods Available for Sale Less: Merchandise Inventory, Dec. 31 Cost of Goods Sold 43,450 133,950 Gross Margin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Required Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and…

A: Vertical Analysis of Income Statement - Vertical analysis of income statement is a method of…

Q: DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a…

A: In order to do the horizontal and vertical analysis the data of the different period is considered…

Q: Determine the gross profit from sales for the period.

A: Revenue: It refers to the earnings of an organization form business operations for a particular…

Q: Income Statement For the Year Ended December 31, 2022 Sales Revenue Interest Income Investment…

A: Lets understand the basicsThe income statement is an essential part of the company's financial…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: The statement of comprehensive income is the profit earned and loss incurred during the period…

Q: Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. (Percentages may not add…

A: The vertical analysis compares the results of two different years. The income statement is analyzed…

Q: on a comparative balance sheet we have: inventory Prior year: 47 million Inventory current year:…

A: T-Account is also called the ledger.

Q: Name: Date: When the calculations for Net sales, Cost of goods sold, and Net income are correct, the…

A: •Accounts Receivable Turnover = Net Sales / Average Accounts Receivable 8 = Net Sales / $6,250 Net…

Q: You have the following information for Metlock, Inc. for the month ended October 31, 2022. Metlock…

A: Inventory Valuation Methods - Inventory valuation involve FIFO Method, LIFO Method and Average Cost…

Q: d) Payables payment period in days e) Number of days inventory on hand 2. Analyse and interpret…

A: Ratio Analysis The purpose pre preparing the Ratio analysis which indicating the strength and…

Q: DIRECTIONS: Using these data from Rollaird Company's comparative balance sheets, perform a vertical…

A: Financial statement analysis is an accounting tool that helps us to analyze the financial statement…

Q: Using the da

A: Common size income statement analyse every item of income statement as a percentage of sales. This…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: The common size statement is prepared as ratio analysis of various elements of financial statements…

Q: Using these data, determine the following: Earnings per share. Round your answer to two decimal…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Comparative Income StatementComparative statements display financial data for different periods side…

Q: 1. Journalize the adjustment for inventory shrinkage. 2. Journalize the adjustment for estimated…

A: Given: Merchandise inventory = $ 5,200 Inventory on June 30, 2018 = $ 4,900 Amount of Sold…

Q: Compute the component percentages for Trixy Magic's income statement below. Note: Enter your answers…

A: Percentage analysis is a type of horizontal analysis that highlights a change in the financial…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Common size comparative income statement :— It is an income statement in which all items of income…

Q: Fork Saved Express the following comparative income statements in common-size percents. Using the…

A: The objective of the question is to express the comparative income statements in common-size…

Q: Income statements for Campbell Company for Year 3 and Year 4 follow: CAMPBELL COMPANY Income…

A: Financial statement analysis seems to be a critical business discipline that allows businesses to…

Q: On the following page prepare a well-formatted multi-section income statement for the Fiona Company…

A: The statement that shows a detailed report of the company's revenue, other incomes, expenses, and at…

Q: Which of the following types of quantitative information are required to be disclosed in Form 10-K…

A: A company is required to disclose all the material information to the users of the financial…

Q: Income statements for Stuart Company for Year 3 and Year 4 follow. STUART COMPANY Income Statements…

A: The horizontal analysis is performed to compare the change between amount of two different years.…

Q: Revenues RUNDLE COMPANY Horizontal Analysis of Income Statements Year 4 Year 3 Sales (net) Other…

A: The horizontal analysis is compared to change in amount of different financial periods. It is…

Q: Use the financial statements below to calculate the current ratio. Balance Sheet (000's) Cash…

A: Lets understand the basics.Current ratio compares current asset with current liabilities. It shows…

Q: The income statements for Federer Sports Apparel for 2025 and 2024 are presented below. Required:…

A: The income statement shows the financial position of the company whether the business is making a…

Q: Please complete the balance sheet using the ratios that have been provided below.

A: Information Provided: Sales = $4,000,000 Gross profit margin = 25% Days sales outstanding = 45 days…

Q: The following items were taken from the adjusted trial balance of the Bremeur Corp, on 31 December…

A: Income statement is one of financial statement of business. Under single step, all revenues and all…

Q: The following information ws taken from the accounts of Green Market, a delicateasen, at December…

A: The question is based on the concept of the Income statement

Q: LO 2. Vertical analysis, or the common-size analysis, is a technique for evaluating financial…

A: Financial statements refer to a set of statements that provide information about the financial…

Q: Flint-Mart Centre Inc. opened for business on May 1, and uses a perpetual inventory system. During…

A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…

Q: Express the following comparative income statements in common-size percents. Using the common-size…

A: Working: Formula for calculation of common size percentage is = (Amount/Net sales) x 100

Q: Perform a horizontal analysis for the entry "Gross Sales" shown on the income statement portion…

A: Horizontal analysis is a financial analysis technique that compares financial statements or…

Q: Begin by calculating the gross profit for each year, then prepare a horizontal analysis of revenues…

A: Compute gross profit for year 2019 and 2018 as shown below:

Q: Given this information, what is the profit percent? Format your answer to two decimal places and…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: . Compute the cost of the ending inventory under the FIFO method. Round the cost-to-retail ratio to…

A: Introduction:- FIFO means First-in-first-out It is one of the inventory valuation method. As per…

Q: . Inventory turnover is calculated as __________ divided by __________. cost of goods sold;…

A: Ratios are used to measure the financial position of the organization with different kinds of ratios…

Q: from the records at the December 31, 2023 year end: Date Jan. 1 15 Mar. 15 June 20 Sept. 12 Nov. 24…

A: Solution: Prepare an income statement under the FIFO method as follows: - Income Statement…

Q: Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at…

A: 1. Gross margin = Sales - Cost of sales. Gross margin for February 2, 2019 (2018) = 74,433 -…

Q: Define days' sales in inventory (what do the results mean). Provide an example

A: Days sales in inventory means how much days company will take to convert its inventory into sales.…

Q: Required Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and…

A: The vertical analysis is performed to compare the element of balance sheet with respect to total…

Question

Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below (as a %). (Round to nearest tenth.)

*Chart is attached with the information*

Revenue
Gross Sales
$199,000
Less: Sales Returns and Allowances
Net Sales
11,600
177,400
Cost of Goods Sold
Merchandise Inventory, Jan. 1
70,150
58,300
Net Purchases
Goods Available for Sale
128,450
Less: Merchandise Inventory, Dec. 31
95,000
Cost of Goods Sold
43,450
Gross Margin
133,950

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Accounting Question
Fill out income statement please and thank you
Showing 1-6 of 6 items. 1. Which of the following statements is true? Gross margin = Net sales - Cost of goods sold ONet sales + Cost of goods sold Gross margin Gross margin - Cost of goods sold = Net sales Net sales + Gross margin = Cost of goods sold
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?
Current assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Total current assets Plant and equipment: Building (net) Land T Total assets Total plant and equipment Assets Total assets Liabilities Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term liabilities: Mortgage note payable despaces Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ $ $ Show Transcribed Text S $ LOGIC COMPANY Comparative Balance Sheet December 31, 2019 and 2020 2020 $ $ $ $ $ $ Amount www. 93,200 13,700 7,700 21,400 22,700 44,100 12,700 17,200 9,200 21,700 27,400 49,100 93,200 24,700 63.800 15,200 14,200 29,400 93,200 Percent. $ $ $ $ S $ $ $ $ $ $ $ ---- 69,900 7,700 5,700 13,400 21,200 34,600 21,700 13,600 35,300 69,900 Amount 2019 9,700 13,200 14,700 10,700 48.300 11,900 9,700 21,600 69,900 Percent
how do i calculate the gross prfoit rate under each tab ( LIFO,FIFO AVERAGE-COST) base off the attachment?
Perform the following: a. horizontal analysis b. vertical analysis c. ratio analysis d. interpret the results
Cont of pictures: Calculate gross profit rate under each of the following methods 1. LIFO 2. FIFO 3. Average-cost (Round answers to 1 decimal place, e.g. 51.2%)
Please do not give solution in image format thanku
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. Note: 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 $ 725,000 100.0 $ 665,000 Cost of goods sold 562,700 1.0 291,000 Gross profit 162,300 0.4 374,000 Operating expenses 129,200 268,400 Net income 33,100 $ 105,600 Income Statement Reason for Decline in Net Income >
Using the attached financial statements attached, ratios need to be calculated for all boxes that are greyed out. Please provide details of how these ratios are calculated.
Required Prepare a vertical analysis of both the balance sheets and income statements for Year 4 and Year 3. Complete this question by entering your answers in the tabs below. Analysis Bal Sheet Analysis Inc Stmt Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) ALLENDALE COMPANY Vertical Analysis of Income Statements Year 4 Year 3 Amount % Total Amount % Total Revenues Sales (net) $ 230,000 100.00 % $ 210,000 100.00 % Other revenues 8,000 5,000 Total revenues 238,000 215,000 Expenses Cost of goods sold 120,000 103,000 Selling, general, and administrative expense 55,000 50,000 Interest expense 8,000 7,200 Income tax expense 23,000 22,000 Total expenses 206,000 182,200 Net income $ 32,000 % $ 32,800 %