Waller Company does business in two regional segments: North and South. The following annual revenue information was determined from the accounting system'sinvoice data:Current YearPrior YearSegmentNorthSouth$ 80,000260,000$100,000200,000Total revenues$340,000$300,000Using horizontal analysis, determine the percentage change in revenues for the North region.Round to one decimal place.Oa. (20.0)%Ob. (22.4)%Oc. 22.4%Od. 20.0%

Horizontal analysis: The comparison of an item of a financial statement of one year against the same…

Answered: Waller Company does business in two…

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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Assume Carla Vista Company has the following reported amounts: Sales revenue $1,489,000, Sales returns and allowances $44,000. Cost of goods sold $955,145, and Operating expenses $321,200. (a) Compute net sales. Net sales $ (b) Compute gross profit. Gross profit $ (c) Compute income from operations. Income from operations $ (d) Compute the gross profit rate. (Round answer to 1 decimal place, e.g. 25.2%.) Gross profit rate %
Colorway Inc. had total assets of P65,000,000 at year end and provided the following condensed income statement for the current year: Sales 45,000,000 Expenses (33,000,000) Income before income tax 12,000,000 Income tax expense (3,800,000) Net Income 8,200,000 The entity has two reportable segments and has developed the following related information: Segment A Segment B Others Sales 25,000,000 15,000,000 5,000,000 Segment expenses 18,000,000 9,000,000 4,000,000 Segment assets 35,000,000 18,000,000 7,000,000 The total assets of P65,000,000 include general corporate assets of P5,000,000. The total segment expenses of P33,000,000 include general corporate expenses of P2,000,000. The chief operating decision maker does not allocate income tax as a measure of profit or loss. Required: 1 Prepare the necessary disclosures for Colorway Inc. in relation to operating segments. 2 Prepare the reconciliations between segment information and amount shown in the entity's financial statements.
Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7
Horizontal Analysis of the Income Statement Income statement data for Boone Company for the years ended December 31, 20Y5 and 20Y4, are as follows: 20Υ5 20Υ4 Sales $673,200 $510,000 Cost of goods sold (572,000) (440,000) Gross profit $101,200 $70,000 Selling expenses $(30,500) $(25,000) Administrative expenses (27,300) (21,000) Total operating expenses $(57,800) $(46,000) Income before income tax $43,400 $24,000 Income tax expenses (17,400) (9,600) Net income $26,000 $14,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round percentage answers to one decimal place. Boone Company Comparative Income Statement For the Years Ended December 31, 20Y5 and 20Y4 20Y5 Amount 20Y4 Amount Increase (Decrease) Amount Increase (Decrease) Percent Sales $673,200 $510,000 % Cost of goods sold (572,000) (440,000) Gross profit $101,200 $70,000 % Selling expenses $(30,500) $(25,000) Administrative expenses (27,300)…
Benson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is: Select one: A. 117.30% B. 86.36% C. 120.92% D. 130.29%
Sellall Department Stores reported the following amounts as of its December 31 year-end: Administrative Expenses, $2,400; Cost of Goods Sold, $22,728; Income Tax Expense, $3,000; Interest Expense, $1,600; Interest Revenue, $200; General Expenses, $2,600; Net Sales, $37,880; and Delivery (freight-out) Expense, $300. Required: 1. Calculate the gross profit percentage. 2. How has Sellall performed, relative to the 24.5 percent gross profit percentage reported for Walmart in 2019? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)check all that apply Sellall Department Stores earned a higher gross profit percentage than Walmart. Walmart earned a higher gross profit percentage than Sellall Department Stores. Sellall includes more mark-up in the prices it charges customers than Walmart. Walmart includes more mark-up in prices it…
Perform a horizontal and vertical analysis. Use 1 decimal place for percentage result on vertical analysis.
Assume the following sales data for a company: Current year $896,005 Preceding year 607,844 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? Oa. 47.4% Ob. 15.3% Oc. 32.2% Od. 79.6%
Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income statement For the year ended December 31, 2021 net sales $240 Cost of goods sold $150 gross profit $90 Operating expenses $65 Net income $25 Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%
Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $369,600 $280,000 Cost of goods sold 312,000 240,000 Gross profit $57,600 $40,000 Selling expenses $17,080 $14,000 Administrative expenses 15,600 12,000 Total operating expenses $32,680 $26,000 Income before income tax $24,920 $14,000 Income tax expenses 10,000 5,600 Net income $14,920 $8,400 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 Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent Sales $369,600 $280,000 $ % Cost of goods sold 312,000 240,000 % Gross profit $57,600 $40,000 %
Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) DINNACLE PLUe PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year). Current Year Previous Year Amount Percentage Income Statement Sales Revenue 118,000 $ 53,600 64,400 $ 104,600 % Cost of Goods Sold 48,800 Gross Profit Operating Expenses Interest Expense 55,800 40,000 35,000 4,800 4,800 Income before Income Tax Expense 19,600 16,000 Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity 5,880 13,720 $ 4,800 11,200 % 69,620 $ 35,400 10,400 % 18,600 25,800 39,600 95,800 109,000 209,820 $ 194,400 $ 43,600 $ 35,800…
Segment Analysis Verity Company does business in two customer segments: Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information: 20Y5 20Y4 Retail $145,400 $138,500 Wholesale 173,100 189,300 Total revenue $318,500 $327,800 Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers. Verity Company Horizontal Analysis For the Years 20Y4 and 20Y5 20Y5 20Y4 Difference - Amount Difference - Percent Retail $145,400 $138,500 $fill in the blank fill in the blank % Wholesale 173,100 189,300 fill in the blank fill in the blank % Total revenue $318,500 $327,800 $fill in the blank fill in the blank % Prepare a vertical analysis of the segments. If required, round percentages to one decimal place. Verity Company Vertical Analysis For the Years 20Y4 and 20Y5 20Y5 Amount 20Y5 Percent 20Y4…

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