Waterway Corporation, Inc. has the following income statement (in millions):Waterway Corporation, Inc.Income StatementFor the Year Ended December 31, 2017Net Sales$390Cost of Goods Sold311Gross Profit79Operating Expenses40Net Income$39Using vertical analysis, what percentage is assigned to net income?100%90%O 10%O 17%

Step 1: Calculation of the percentage assigned to net income.Vertical analysis = Statement line item…

Answered: Waterway Corporation, Inc. has the…

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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GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…
Comparative financial statement data for Flounder Corp. and Blue Spruce Corp., two competitors, appear below. All balance sheet data are as of December 31, 2017. Flounder Corp. Blue Spruce Corp. 2017 2017 Net sales $1,908,000 $657,200 Cost of goods sold 1,245,500 360,400 Operating expenses 299,980 103,880 Interest expense 9,540 4,028 Income tax expense 90,100 38,160 Current assets 444,000 199,036 Plant assets (net) 563,920 148,112 Current liabilities 70,305 35,739 Long-term liabilities 115,010 43,125 Net cash provided by operating activities 146,280 38,160 Capital expenditures 95,400 21,200 Dividends paid on common stock 38,160 15,900 Weighted-average number of shares outstanding 80,000 50,000 (a)Compute the net income and earnings per share for each company for 2017. (Round Earnings per share to 2 decimal places, e.g. $2.78.) Net Income Earnings per share Flounder Corp. $…
Horizontal analysis (trend analysis) percentages for Pharoah Company's sales, cost of goods sold, and expenses are listed here. Horizontal Analysis 2023 Sales revenue Cost of goods sold Expenses 97.5 % Net income 104.0 107.0 2022 104.8 % 97.0 97.3 2021 100.0 % 100.0 100.0 Did Pharoah's net income increase, decrease, or remain unchanged over the 3-year period?
The comparative statements of Osborne Company are presented below: OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales $1,897,652 $1,757,612 Cost of goods sols 1,065,652 1,013,112 Gross profit 832,000 744,500 Selling and administrative expenses 507,112 486,112 Income from operations 324,888 258,388 Other expenses and losses Interest expense 23,327 21,327 Income before income taxes 301,561 237,061 Income tax expense 93,327 74,327 Net income $208,234 $162,734 OSBORNE COMPANY Balance Sheets December 31 2014 2013 Assets Current Assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 124,912 109,912 Inventory 127,327 116,827 Total current assets 386,339 340,939 Plant assets (net) 659,589 530,889 Total assets $1,045,928 $871,828 Liabilities and Stockholders' Equity Current liabilities Accounts payable $167,112 $152,512 Income taxes payable 44,827 43,327 Total…
Perform a vertical analysis...
Selected financial statement data for Schmitzer Inc. is shown below: 2016 2015 Balance sheet: Inventories 60,000 48,000 Ratios: Gross profit ratio for 2016 Inventory turnover ratio for 2016 40% What was the amount of net sales for 2016?
answer the questions
Performing horizontal analysis—income statement Data for Mulberry Designs, Inc. follow: Requirements Prepare a horizontal analysis of the comparative income statement of Mulberry Designs, Inc. Round percentage changes to one decimal place. Why did 2018 net income increase by a higher percentage than net sales revenue?
Amir Company’s net income and net sales are $18,000 and $1,100,000, respectively,and average total assets are $100,000. What is Amir’s return on assets?a. 20.0%b. 18.0%c. 3.7%d. 7.0%
Below are Income Statement data for Baker Corporation: Operating expenses $124,000, Other expenses $12,000, Income taxes $29,000, Cost of goods sold $101,000, and the Net revenue $333,000. What is the company's return on sales? A. 69.67% B. 16.92% C. 32.43% D. 20.12%
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $820,000 100 % Cost of goods sold 524,800 70 Gross profit $295,200 30 % Selling expenses $180,400 17 % Administrative expenses 65,600 7 Total operating expenses $246,000 24 % Operating income $49,200 6 % Other revenue 16,400 2 $65,600 8 % Other expense 8,200 1 Income before income tax $57,400 7 % Income tax expense 24,600 4 Net income $32,800 3 %
The comparative condensed income statements of Emley Corporation are shown below. EMLEY CORPORATIONComparative Condensed Income StatementsFor the Years Ended December 31 2017 2016 Net sales $726,000 $661,000 Cost of goods sold 531,300 462,000 Gross profit 194,700 199,000 Operating expenses 137,500 132,000 Net income $ 57,200 $ 67,000 (a)Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (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%.) EMLEY CORPORATIONCondensed Income Statements Increase or (Decrease)During 2017 2017 2016 Amount Percentage Net sales $726,000 $661,000 $ % Cost of goods sold 531,300 462,000 % Gross profit…

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