A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:McKenzie Sales, LimitedComparative Income StatementSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensescome Statement LAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxes$This Year7,350,0004,750,0002,600,0001,386,000708,0002,094,000506,00098,000$408,000Last Year.$ 5,586,0003,512,5002,073,5001,081,500608,0001,689,500384,00089,000$ 295,000Members of the company's board of directors are surprised to see that net income increased by only $113,000 when sales increasedby $1,764,000.Required:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e.. A comparative income statement is given below for McKenzie Sales, Limited, of Toronto:McKenzie Sales, LimitedComparative Income StatementSalesCost of goods soldGross marginSelling and administrative expenses:Selling expensescome Statement LAdministrative expensesTotal expensesNet operating incomeInterest expenseNet income before taxes$This Year7,350,0004,750,0002,600,0001,386,000708,0002,094,000506,00098,000$408,000Last Year.$ 5,586,0003,512,5002,073,5001,081,500608,0001,689,500384,00089,000$ 295,000Members of the company's board of directors are surprised to see that net income increased by only $113,000 when sales increasedby $1,764,000.Required:1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e..

Lets understand the basics.Common size percentage is a ratio which derive each items of the income…

Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year % % % % % % % % % Last Year % % % % % % % % %

Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes This Year % % % % % % % % % Last Year % % % % % % % % %

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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Sales Revenues Cost of goods sold Fixed costs 48 16 Selling, general, and administrative expenses 22 Depreciation EBIT |laxes| 19 pastor Profit illa ESINOPATI 7 *** Tax rate Dividends paid ASSETS Current Assets Lish Accounts receivable Inventories Total current assets Cross Fixed assets Accumulated depreciation Net Fixed assets Intangible assets TOTAL ASSETS 40% $10 Partial Balance Sheet 12 31 2019 $4 6 LIABILITIES Current Liabilities Accruals Accounts payable 5 Total current liabilities Long-term debt Total Liabilities 70 OWNERS EQUITY 10 Retained earnings Common stock 0 total owner's equity |IOTAL LIABILITES & OWNERS SQUITY These are surtulative reliános szarnings haut textsenck strapl, calkat nainsi sum ASSETS LIABILITIES Total current assets Gros Fned assets Accumulated depreciation Intangbleaxeets Meninis prade Toral current liabilities 105 Toral liabilities OWNERS EQ L
Sales Revenue Less: Cost of Goods Sold Gross Profits Less: Operating Expenses Operating Profits Less: Interest Expense Net Profits Before Taxes Less: Taxes (40%) Net Profits After Taxes Assets Cash Income Statement Pulp, Paper and Paperboard, Inc. For the Year Ended December 31, 2019 Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and stockholders' equity Current liabilities Balance Sheet Pulp, Paper and Paperboard, Inc. December 31, 2019 Accounts payable Notes payable Accruals Total current liabilities Long-term debts Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Calculate the following: NP, GP $2,080,976 1,701,000 $ 379,976 273,846 $ 106,130 19,296 S 86,834 34,810 S 52,024 Current Ratio - Quick Ratio Receivable days - Payable days $ 95,000 237,000 243.000 $ 575,000 500,000 75.000 $ 425,000…
Following is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $62,500). Inventory turnover is 5 (average inventory is $7,800). Accounts receivable turnover is 8 (average accounts receivable is $7,700). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 8800 Income tax expenses 3800 Net Income
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Q5 Revenues Cost of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings Capital Purchases Changes to NWC Year 0 Year 1 -280,0 00 Year 2 140,00 440,00 0 0 -70,00 220,00 0 0 Year 3 Year 4 440,00 350.00 0 0 220,00 175,00 0 0 70,000 220,00 220,00 0 0 -6400 6400 6400 175,00 0 6400 75.00 75.000 75,000 75,000 0 -11,40 138,60 138.60 93,600 0 0 0 3990 -48,51 48,51 0 32,76 0 0 -7410 90,090 90,090 60,840 -5.000 -5,000 -5,000 -5,000 A garage is installing a new "bubble-wash" car wash. It will promote the car wash as a fun activity for the family, and it is expected that the novelty of this approach will boost sales in the medium term. If the cost of capital is 10%, what is the net present value (NPV) of this project? Show all calculations
#becausesneaker.... HW CH 17 Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales Cost of merchandise sold Selling expenses Administrative expenses Income tax expense Custom Order Sales Cost of merchandise sold Selling expenses a. Prepare an income statement in comparative form, statin each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Administrative expenses Income tax expense $483,000 280,140 82,110 86,940 14,490 Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 Current year Amount $483,000 280,140 82,110 86,940 14,490 percentage points, and administrative expenses net income as a percent of sales Current year Percent % % % % % % $420,000 218,400 79,800 71,400 21,000 % % % Previous year Amount $420,000 218,400 79,800 71,400 21,000 Previous year Percent b.…
2020 Revenue $432,000 Returns, allowances, discounts ($21,600) Cost of goods sold ($280,800) Operating expenses ($45,000) Net Income $84,600 Use the above information to calculated the gross margin/profit ratio.
Below is the common-sized statement for the current calendar year fo Hugo Boss and Industry average, Industry Hugo Boss Average Sales 100% 100% Cost of Goods Sold 46.7% 45.2% Gross Profit 53.3% 54.8% Selling Expenses 12.9% 16.7% Administrative Expenses 13.1% 14.5% Total Operating Expenses 25.0% 31.2% Income from Operations 27.3% 23.6% Other Revenue 1.8% 1.2% 29.% 24.8% Other Expense(Interest) 1.0 0.9 Income Before Income Tax 28.1% 23.9% Income Tax Expense 9.8 8.4 Net Income 18.3% 15.5% Using the common-sized statement above, compare Hugo Boss with the industry average and identify strengths and weaknesses that Hugo Boss has to the industry. Does Hugo Boss need any course correction. What does it need?
Income statements for Rundle Company for Year 3 and Year 4 follow: RUNDLE COMPANY Income Statementa Sales Cost of gooda sold Selling expenses Administrative expenses Interent expense Total expenses Income before taxes Income taxes expense Year 4 $201,100 142,000 21,200 12,900 3,000 $179,100 22,000 6,900 $15,100 Year 3 $181,100 *120,000 19,200 14,900 5,000 $159, 100 22,000 3,100 $ 18,900 Net income 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, Complete this question by entering your answers in the tabs below. Required A Required B
View Policies Current Attempt in Progress A company has the following balances: Sales revenue $312.000: Sales Returns and Allowances $2.000: Sales Discounts $4,000: Cost of Goods Sold $184,000: Operating Expenses $84,000. Assume there are no other revenues, other expenses, or income tax expense. How much is the profit margin? O 16.0% O 12.2% O 12.4% O 41.0 % eTextbook and Media Hint 4 ! Save for Later Using multiple attempts will impact your score 10% soore reduction after attempt 1 Attempts; unlimited Submit Answer
At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year Interest expense Income tax expense Total costs and expenses Net income Earnings per share $ 31,880 88,776 116, 174 9,763 283, 158 $ 529,751 $ 127,951 100,589 162,500 138,711 $529,751 For both the current year and one year ago, compute the following ratios: $ 420,092 213,490 11,707 8,953 Current Year 1 Year Ago The company's income statements for the current year and one year ago follow. Assume that all sales are on credit: $ 688,676 $36,900 63,296 86,176 9,686 260,624 $ 456,682 654,242 $34,434 $ 2.12 2 Years Ago $36,930 50,235 $ 75,636 105, 037 163,500 $ 49,240 81,607 162,500 83,453 112,509 $ 456,682 $ 376,800 54, 576 4,186 230,873 $…
Years Revenue Cash Expense Book Depreciation Book Income Pre-Tax Book Tax at 32% After Tax Book Income Financial Measures Profit Margin % Net Assets ROA % Cashflow Revenue Cash Expense Tax Depreciation Pretax Income Tax at 32% After Tax Income After Tax Cashflow Cumulative Cashflow Payback Period Present Worth 10 PW12 PW15 IRR PV Index(15) Facility Cost Income Tax Rate 0 C. -9.5 d. -12.4 $ 100,000.00 2.2 Years 91740.92679 0.395702526 1 0.684350818 $ 100,000.00 32% $30,000.00 $100,000.00 $120,000.00 $140,000.00 $150,000.00 $150,000.00 $50,000.00 $60,000.00 $70,000.00 $75,000.00 $75,000.00 2 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $0.20 $20,400.00 $27,200.00 $0.26 $9,600.00 $12,800.00 $16,000.00 $17,600.00 $17,600.00 $20,400.00 ($100,000.00) $40,400.00 $51,040.00 ($100,000.00) -$59,600.00 -$8,560.00 $40,000.00 $50,000.00 $55,000.00 $55,000.00 $0.23 3 $0.45 $36,727.27 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $0.85 $1.87 4 $19,040.00 5 $34,000.00 $37,400.00 $0.24…