**Revenue and Expense Data for Innovation Quarter Inc.**The 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. Comparative Income Statement**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. Vertical Analysis**The vertical analysis indicates that the cost of merchandise sold as a percent of sales ________ by 7 percentage points, while selling expenses ________ by 3 percentage points, and administrative expenses ________ by 1 percentage point. Thus, net income as a percent of sales ________ by 3 percentage points.

a. Statement of Comparative Income Statement Current Year Amount Percent Previous Year Amount…

Answered: The vertical analysis indicates that…

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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chapter 3 4. Given the information below, what is the profit percent? Round your answer to two decimal places and add a percent sign (i.e. 15.37%) Gross Sales $341,420 Customer Returns 29,870 Cost of Goods Sold 161,570 Expenses 138,140
Compute common-size percents for the following comparative income statements (round percents to one decimal). Using the common-size percents, which item is most responsible for the decline in net income?
Determine the Prior Year and Current Year common-size percents for cost of goods sold using net sales as the base. ( answers in thousands of dollars.) ($ thousands) Net sales Cost of goods sold Current Year: Prior Year: Prior Current Year $801,810 $ 453,000 Year: 392,887 134,088 Common-Size Percent for Cost of Goods Sold using Net Sales as the base: Choose Denominator: Base year net sales 801,810/ $ 453,000/ $ Choose Numerator: Analysis period net sales S S 453,000= 453,000 = Common-size percents 177.0 % 100.0 %
When a company that sells its products with a positive gross profit increases its sales by15 percent and its cost of goods sold by 7 percent, the cost of goods sold ratio willa. Increase.b. Decrease.c. Remain unchanged.d. Not be able to be determined with the information provided
Using the accounts and amounts below, calculate Gross Profit: Account Amount Sales Revenue $124,357 Net Sales 124,835 Sales Returns and Allowances 2,971 Cost of Goods Sold 37,343 Operating Expenses 20,156
The gross margin estimation method estimates the cost of goods sold by multiplying the costs to sales ratio by purchases. O multiplying the sales revenue by the inventory turnover ratio. multiplying the cost of goods available by the gross margin percentage. O multiplying the sales revenue by cost-to-sales ratio.
how do i calculate the gross prfoit rate under each tab ( LIFO,FIFO AVERAGE-COST) base off the attachment?
Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit by sales.The formula to calculate the gross profit ratio is as follows: Gross profit = Gross profit/sales Gross profit is calculated using the following formula: Gross profit= Sales-Cost of Goods Sold To choose: The correct term for excess of sales over the cost of goods sold.
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
compute net sales, gross profit, and the gross profit ratio for each of the four seperate companies. Round gross margin ratio to one decimal place. carrier lennox trane york sales 150000 550000 38700 255700 sales discounts 5000 17500 600 4800 sales returns and allowances 20000 6000 5100 900 cost of goods sold 79750 329589 24453 126500
If a company has sales revenue of $631000, net sales of $500000, and cost of goods sold of $385000, the gross profit rate is 77%. 61%. 39%. 23%.
Efficiency ratio: Bummel and Strand Corp. has a gross profit margin of 33.7 percent, Sales of $47,112,365, and inventories of $14,595,435. What is its inventory turnover ratio?

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The vertical analysis indicates that the cost of merchandise sold as a percent of sales arcent of sales by 3 percentage points.