Two income statements for Versatile Company follow: Versatile Company Income Statements For the Years Ended December 31 20Υ5 20Y4 Fees earned $793,000 $672,000 Operating expenses 650,260 591,360 Income from operations $142,740 $80,640 a. Prepare a vertical analysis of Versatile Company's income statements. Enter percents as whole numbers. Versatile Company Income Statements For the Years Ended December 31 20Y5 20Y5 Percent 20Υ4 20Y4 Perce Amount Amount Fees earned $793,000 $672,000 Operating expenses 650,260 591,360 Income from $142,740 $80,640 operations b. Does the vertical analysis indicate a favorable or an unfavorable trend?

Two income statements for Versatile Company follow: Versatile Company Income Statements For the Years Ended December 31 20Υ5 20Y4 Fees earned $793,000 $672,000 Operating expenses 650,260 591,360 Income from operations $142,740 $80,640 a. Prepare a vertical analysis of Versatile Company's income statements. Enter percents as whole numbers. Versatile Company Income Statements For the Years Ended December 31 20Y5 20Y5 Percent 20Υ4 20Y4 Perce Amount Amount Fees earned $793,000 $672,000 Operating expenses 650,260 591,360 Income from $142,740 $80,640 operations b. Does the vertical analysis indicate a favorable or an unfavorable trend?

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

Here are the comparative condensed income statements of Concord Corporation. Concord Corporation Condensed Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Operating expenses Net income (a) 2022 Net sales $636,000 502,440 133,560 89,040 $44,520 2022 2021 $524,000 Cost of goods sold 502,440 435,444 Prepare a horizontal analysis of the income statement data for Concord Corporation, using 2021 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.) 88,556 49,780 $38,776 2021 CONCORD CORPORATION Condensed Income Statements $636,000 $524,000 435,444 $ Increase or (Decrease) During 2022 Amount Percentage % %
How do I make a tabular format, to provide the revenues, gross profit, income from operations, net income, and earnings per share for the most recent three fiscal years. For the two most recent fiscal years, compute and indicate the annual percentage growth (or decline) in each of these numbers?
Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as follows: 20Y8 20Υ7 Sales $572,000 $503,000 Cost of goods sold 366,080 286,710 Selling expenses 80,080 85,510 Administrative expenses 91,520 100,600 Income tax expense 17,160 10,060 a. Prepare an income statement in comparative form, stating each item for both 20Y8 and 20Y7 as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as a positive number. Rogan Technologies Co. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 20Y8 Amount 20Y8 Percent 20Y7 Amount 20Y7 Percent % % % % Gross profit % % % Total operating expenses % % % Net income
Vertical Analysis Two income statements for Upward Company follow: Upward Company Income Statements For the Years Ended December 31 20Y5 20Y4 Fees earned $924,000 $784,000 Operating expenses 545,160 478,240 Income from operations $378,840 $305,760 a. Prepare a vertical analysis of Upward Company's income statements. Enter percents as whole numbers. Upward Company Income Statements For the Years Ended December 31 20Y5 Amount 20Y5 Percent 20Y4 Amount 20Y4 Percent Fees earned $924,000 100 % $784,000 100 % 545,160 0X % 478,240 X % Operating expenses X % $305,760 X % Income from operations $378,840
f
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 $536,800 $440,000 Cost of merchandise sold 444,000 370,000 Gross profit $92,800 $70,000 Selling expenses $25,760 $23,000 Administrative expenses 22,800 19,000 Total operating expenses $48,560 $42,000 Income before income tax expense $44,240 $28,000 Income tax expenses 17,700 11,200 Net income $26,540 S16,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Increase Increase (Decrease) Previous year year (Decrease)
Refer to the following selected company information to determine the Year 1 and Year 2 common size percentages for operating expenses using Net sales as the base. Year 1 Year 2 Net sales $397,800 $489,400 Cost of goods sold 134,660 210,400 Operating expenses 73,910 76,690 Net earnings 27,490 38,740 Answer: A. 15.3% for Year 1 and 27.3% for Year 2 B. 33.9% for Year 1 and 43% for Year 2 C. 18.6% for Year 1 and 15.7% for Year 2 D. 20.4% for Year 1 and 19.3% for Year 2 E. 100% for Year 1 and 123% for Year 2