Use the following information for Brief Exercises 15-24 and 15-25: Jasmine Company provided the following income statements for its first 3 years of operation: Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Net income Year 1 $5,000,000 (3,000,000) $ 2,000,000 (1,420,000) (232,000) $ 348,000 Year 3 $4,000,000 (3,600,000) $ 400,000 (800,000) (165,000) (180,000) (134,000) $ 270,000 $ 101,000 Year 2 $ 4,500,000 (3,250,000) $1,250,000
Use the following information for Brief Exercises 15-24 and 15-25: Jasmine Company provided the following income statements for its first 3 years of operation: Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Income taxes Net income Year 1 $5,000,000 (3,000,000) $ 2,000,000 (1,420,000) (232,000) $ 348,000 Year 3 $4,000,000 (3,600,000) $ 400,000 (800,000) (165,000) (180,000) (134,000) $ 270,000 $ 101,000 Year 2 $ 4,500,000 (3,250,000) $1,250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brief Exercises: Set B
Use the following information for Brief Exercises 15-24 and 15-25:
Jasmine Company provided the following income statements for its first 3 years of
operation:
Net sales
Less: Cost of goods sold
Gross margin
Less: Operating expenses
Income taxes
Net income
Year 1
$5,000,000
(3,000,000)
$ 2,000,000
(1,420,00
$
(232,000)
348,000
Year 2
$ 4,500,000
(3,250,000)
$1,250,000
Year 3
$4,000,000
(3,600,000)
$ 400.000
(165,000)
(134,000)
(800,000)
(180,000)
$ 270,000 $ 101,000
Transcribed Image Text:Brief Exercise 15-24. Preparing Common-Size Income Statements
by Using Base Period Horizontal Analysis
Objective 1 Example 15.1
Tour
Refer to the information for Jasmine Company on the previous page.
REQUIRED:
Prepare common-size income statements by using Year 1 as the base period. (Note:
Round answers to the nearest whole percentage.)
Tour
Required:
H
Brief Exercise 15-25. Preparing Income Statements by Using Net
Sales as the Base: Vertical Analysis
Objective 1 Example 15.2
Refer to the information for Jasmine Company on the previous page.
Search Annotations
Prepare common-size income statements by using net sales as the base. (Note:
Round answers to the nearest whole percentage.)
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