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Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in millions) Year 2 Year 1 Revenue $ 502.6 $ 509.0 Expenses: Cost of merchandise sold... $(221.4) S(240.0) Selling general, admin. expenses Other expenses ... (236.8) (208.7) (16.8) S(475.0) (21.9) Total expenses S(470.6) Operating income $ 276 $ 38.4 ....

Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in millions) Year 2 Year 1 Revenue $ 502.6 $ 509.0 Expenses: Cost of merchandise sold... $(221.4) S(240.0) Selling general, admin. expenses Other expenses ... (236.8) (208.7) (16.8) S(475.0) (21.9) Total expenses S(470.6) Operating income $ 276 $ 38.4 ....

FINANCIAL ACCOUNTING
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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Vera Bradley, Inc. (VRA) is a leading designer, producer, and retailer of fashion handbags, accessories, and travel items for women. Income statements for two recent years for Vera Bradley are as follows:

a. Prepare a horizontal analysis of the two income statements.
b. Assume you are a stockholder of Vera Bradley. Would you be inclined to view Vera Bradley's change in operating income favorably or unfavorably?

Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in millions) Year 2 Year 1 Revenue $ 502.6 $ 509.0 Expenses: Cost of merchandise sold... $(221.4) S(240.0) Selling general, admin. expenses Other expenses ... (236.8) (208.7) (16.8) S(475.0) (21.9) Total expenses S(470.6) Operating income $ 276 $ 38.4 ....
Transcribed Image Text:Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in millions) Year 2 Year 1 Revenue $ 502.6 $ 509.0 Expenses: Cost of merchandise sold... $(221.4) S(240.0) Selling general, admin. expenses Other expenses ... (236.8) (208.7) (16.8) S(475.0) (21.9) Total expenses S(470.6) Operating income $ 276 $ 38.4 ....
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