The following data are taken from recent financial statement of Nike, Inc. (in millions):Year 2Year 1Sales (revenues).$30,601$27,7992,693Net income...3,273Determine the amount of change (in millions) and percent of change in net incomefrom Year 1 to Year 2. Round to one decimal place.b. Determine the percentage relationship between net income and sales for Year 2 andYear 1. Round to one decimal place.a.What conclusions can you draw from your analyses?c.

Vertical analysis:Vertical analysis is the method of financial statement analysis, and it is useful…

Answered: The following data are taken from…

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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Horizontal analysis of the income statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) $44,500 (17,800) $26,700 $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000
Compare Income Statements and Balance Sheets of Competitors a. Following are selected income statements from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each income statement amount as a percentage of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Income Statement ($ millions) Sales Pfizer Dr. Reddy's $46,136 0% $1,876 09 Cost of goods sold 11,248 0% 1,009 0% Gross profit 34,888 0% 867 0% Total expenses Net income 26,841 $8,047 0% 0% 878 $(11) 0% 0% b. Following are selected balance sheets from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each balance sheet amount as a percentage of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Balance Sheet ($ millions) Pfizer Dr. Reddy's Current assets $42,936 0% $1,448 0% Long-term assets Total assets 109,496 $152,432 0% 1,781 096 0% $3,229 09…
Find in Amount ($) and Percentage(%) for Year 2 over Year 1: Income Statement - (a) Sales Revenue (b) Cost of sales (c) Gross Margin
I. Complete the horizontal analysis below. Use the name of the company you belong to in your iLS Activity. Round off your answers to the nearest hundredths. Name: Income Statement for the years ending December 31, 201X and December 31, 201Y 2015 2016 Annual Percentage Growth 2015-2016 Sales 475,000 500,000 1. Cost of Goods Sold 265,000 269,000 2. Gross Profit 210,000 231,000 3. Wages 154,000 163,000 4. Repairs 5,800 4,150 5. Rent 13,000 12,000 6. Taxes 16,940 17,930 7. Office Expenses 1,023 587 8. Total Expenses 190,763 197,667 9. Net Income 19,237 33,333 10. II. Analyze the following ratios (Good/Not good, Undervalued/Overvalued, or just OK) based on the given industry averages. Write the answers in the spaces provided. Ratios Annual Data Industry Average Interpretation Current 5.7 4 Days Sales Outstanding 37 days 42 days Total Debt to Total Capital 47.80% 32.60% Times-Interest Earned 2.2 6 Profit Margin 6.10% 6.00% Return on Invested Capital 10.03% 10.00% Enterprise Value to EBITDA…
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Common-Sized Income Statement 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 $1,540,000 100 % Cost of goods sold 1,016,400 72 Gross profit $523,600 28 % Selling expenses $308,000 15 % Administrative expenses 123,200 7 Total operating expenses $431,200 22 % Operating income $92,400 6 % Other revenue 30,800 2 $123,200 8 % Other expense 15,400 1 Income before income tax $107,800 7 % Income tax expense 46,200 4 Net income $61,600 3 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Tannenhill…
Complete this question by entering your answers in the tabs below. Analysis Analysis Bal Sheet 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).) Revenues Sales (net) Other revenues Total revenues Expenses Cost of goods sold FANNING COMPANY Vertical Analysis of Income Statements Year 4 Selling, general, and administrative expense Interest expense Income tax expense Total expenses Net income Amount $ 231,900 9,300 241,200 118,800 54,200 6,800 22,800 202,600 $ 38,600 Percentage of Total Analysis Bal Sheet % % Year 3 Amount $ 211,200 6,400 217,600 102,100 49,100 6,000 21,800 179,000 $ Percentage of Total % % 38,600 Analysis Inc Stmt > Show less
The following financial data (in thousands) were taken from recent financial statements of Staples, Inc.: Please see the attachment for details: 1. Determine the times interest earned ratio for Staples in Year 3, Year 2, and Year 1? Round your answers to one decimal place.2. Evaluate this ratio for Staples.
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Motorola Credit Corporation's annual report (dollars in millions) 3311 Net revenue (sales) Net earnings 170 Total assets 2,245 Total liabilities 1,929 Total stockholders' equity 316 a. Find the total debt to total assets ratio. (Round your answer to the nearest hundredth percent.) Total debt to total assets b. Find the return on equity ratio. (Round your answer to the nearest hundredth percent.) Return on equity c. Find the asset turnover ratio. (Round your answer to the nearest cent.) Asset turnover d. Find the profit margin ratio on net sales. (Round your answer to the nearest hundredth percent.) Profit margin
Selected Data (thousands) derived from the income statement and balance sheet of National BeverageCorporation for a recent year are as follows:Income statement data:Net Income 49,311Gain on disposal of property 1,188Depreciation 11,580Other items involving noncash expenses 1,383Balance Sheet data:Increase in accounts receivable 1,746Decrease in inventory 990Increase in prepaid expenses 605Decrease in accounts payable 710Decrease in accrued and other current liabilities 995Prepare the Cash Flows from Operating Activities Section of the Statement of Cash Flowsusing the indirect method for National Beverage Corp.
The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions): AT&T Verizon Revenues.. $132,447 $127,079 Cost of services (expense).. 60,611 49,931 Selling and marketing expense . Depreciation and other expenses Operating income 39,697 41,016 20,393 16,533 $ 11,746 $ 19,599 a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal place. Based on Requirements (a) and (b), how does AT&T compare to Verizon? c.

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