TASK THREЕ:Income Statement for the year ended 31 December 2020EdwardFrankieCompanyCompany$Sales100,00080,000Less:Cost of goods sold60,00050,000Gross Profit40,00030,000Less:Expenses36.00018,000Net Profit4.00012,0001. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each ofthe company respectively.2. Comment the profitability of the two companies.

Gross profit ratio = Gross profit/ Sales Net profit ratio = Net profit/ Sales Expense to sales ratio…

TASK THREE: Income Statement for the year ended 31 December 2020 Edward Frankie Company Company Sales 100,000 80,000 Less: Cost of goods sold 60,000 50,000 30,000 Gross Profit 40,000 Less: Expenses 36,000 18,000 12,000 Net Profit 4,000 1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of the company respectively. 2. Comment the profitability of the two companies.

TASK THREE: Income Statement for the year ended 31 December 2020 Edward Frankie Company Company Sales 100,000 80,000 Less: Cost of goods sold 60,000 50,000 30,000 Gross Profit 40,000 Less: Expenses 36,000 18,000 12,000 Net Profit 4,000 1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of the company respectively. 2. Comment the profitability of the two companies.

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

I need provide
Assume Martinez Company has the following reported amounts: Sales revenue $ 610,000, Sales returns and allowances $ 30,000, Cost of goods sold $ 396,500, and Operating expenses $ 84,000. (a) Compute net sales. Net sales (b) Compute gross profit. Gross profit (c) Compute income from operations. Income from operations (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %24
Assume Carla Vista Company has the following reported amounts: Sales revenue $1,489,000, Sales returns and allowances $44,000. Cost of goods sold $955,145, and Operating expenses $321,200. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit $ (c) Compute income from operations. Income from operations $ (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %
Answer ALL the questions in this section. QUESTION 1 Read the information below and answer the following questions INFORMATION The following statement of comprehensive income for the financial year ended 31 December 2021 and the statement of financial position as at 31 December 2021 have been provided by Midas Enterprises: Statement of comprehensive income for the year ended 31 December 2021 1 Sales Cost of sales Gross profit Variable selling and administrative expenses Fixed selling and administrative expenses Net profit R 10 000 000 (5 750 000) 4 250 000 (1 500 000) (500 000) 2 250 000 Statement of financial position as at 31 December 2021 ASSETS Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash EQUITY AND LIABILITIES Equity Current liabilities Accounts payable R 800 000 800 000 3 400 000 1 600 000 600 000 1 200 000 4 200 000 3 760 000 440 000 440 000 4 200 000 Additional information: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. The sales budget…
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 %
Vertical Analysis Income statement information for Einsworth Corporation follows: Sales $230,000 Cost of goods sold 75,900 Gross profit 154,100 Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number. Einsworth Corporation Vertical Analysis of the Income Statement Amount Percentage Sales $230,000 fill in the blank 1% Cost of goods sold 75,900 fill in the blank 2 Gross profit $154,100 fill in the blank 3%
Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, and| Problem 2 VERTICAL ANALYSIS. The Lyons Corporation reported the following income stateme data: 20X2 20X1 Net sales $400.000 $250.000 Cost of goods sold $280.000 S160.000 Operating expenses S75.000 $56.000 Requirement: Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, ana evaluate the results.
practice please help with formula
A company reports the following amounts at the end of the year: Sales revenue Cost of goods sold Net income $ 310,000 210,000 53,000 Compute the company's gross profit ratio. (Round your final answe Gross profit ratio %
A vertical analysis of two income statements for Danielle's Design Services is shown below: Danielle's Design Services Income Statements For Years 1 and 2 Ending December 31 Year 2 Year 1 Amount Percent Amount Percent Fees earned $765,340 100.0% $696,520 100.0% Operating expenses: Wages expense $254,000 33.2% $214,600 30.8% Rent expense 120,000 15.7% 108,000 15.5% Supplies expense 76,500 10.0% 98,715 14.2% Miscellaneous expense 11,680 1.5% 16,420 2.4% Total operating expenses $462,180 60.4% $437,735 62.9%* Net income $303,160 39.6% $258,785 37.1%* *Differences due to rounding Which of the following analyses reflect the data given? a.Wages expense and miscellaneous expense show an unfavorable trend, and rent and supplies expenses show an unfavorable trend. b.Wages expense and rent expense show a favorable trend, while supplies and miscellaneous expenses show an unfavorable trend. c.Wages expense and rent expense show an unfavorable trend, while…
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…