When vertical analysis is applied to the income statement of a business with net sales of 1,000,000 TL and marketing expenses of 88,000 TL, which of the following is the vertical analysis value of marketing expenses (%)? a) 10.8 B) 50 NS) 9.9 D) 8.8 TO) 30.5
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25 -
When vertical analysis is applied to the income statement of a business with net sales of 1,000,000 TL and marketing expenses of 88,000 TL, which of the following is the vertical analysis value of marketing expenses (%)?
a)
10.8
B)
50
NS)
9.9
D)
8.8
TO)
30.5
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- 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 %Excel Online Structured Activity: Balance Sheet Analysis Consider the following financial data for J. White Industries: Total assets turnover: 1.2Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 27%Total liabilities-to-assets ratio: 45%Quick ratio: 0.90Days sales outstanding (based on 365-day year): 29.5 daysInventory turnover ratio: 4.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Complete the balance sheet and sales information in the table that follows for J. White Industries. Do not round intermediate calculations. Round your answers to the nearest whole dollar. Partial Income StatementInformation Sales $ fill in the blank 2 Cost of goods sold $ fill in the blank 3 Balance Sheet Cash $ fill in the blank 4 Accounts payable $ fill in the blank 5 Accounts receivable $ fill in the blank 6 Long-term debt $…Required: a. Firm D has net income of $68,688, sales of $1,272,000, and average total assets of $795,000. Calculate the firm's margin, turnover, and ROI. b. Firm E has net income of $156,768, sales of $2,272,000, and ROI of 11.04%. Calculate the firm's turnover and average total assets. c. Firm F has ROI of 13.80 %, average total assets of $1,680,000, and turnover of 0.8. Calculate the firm's sales, margin, and net income. Complete this question by entering your answers in the tabs below. Required A Required B Required C Firm E has net income of $156,768, sales of $2,272,000, and ROI of 11.04%. Calculate the firm's turnover and average total assets. Note: Do not round intermediate calculations. Round "Turnover" answer to 1 decimal place. Turnover Average total assets
- 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 Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) $44,500 (17,800) $26,700 $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000A company has net income of $300,000, net sales of $2,500,000, and total assets of $2,000,000. Its return on total assets equals a. 6.7%. c. 8.3%. e. 15.0%. b. 12.0%. d. 80.0%.Question 51: In the vertical analysis of an income statement, what is the base (100%) figure? Answer: A. Total expenses B. Total revenues C. Total assets D. Net income
- Mastery Problem: Financial Statement Analysis Liquidity and Solvency Measures Your friend, another accountant, has bet you that with your knowledge of accounting and just the computations for common analytical measures, you can figure out many aspects of a company's financial statements. You take the bet! Match each computation to one of the liquidity and solvency measures in the table. (Hint: Begin by looking for simple computations and identifying the amounts in those computations. Look for other measures that use those amounts.) Liquidity and Solvency Measures Computations Working capital $3,095,000 –- $860,000 - v Current ratio $3,095,000 ÷ $860,000 - Quick ratio $1,866,000 + $860,000 V Accounts receivable turnover $8,260,000 + [($714,000 + $740,000) ÷ 2]° Number of days' sales in receivables [(S714,000 + $740,000) ÷ 21 ÷ ($8,260,000 ÷ 365) ▪ Inventory turnover $4,100,000 ÷ [($1,072,000 + $1,100,000) ÷ 21 - Number of days' sales in inventory [($1,072,000 + $1,100,000) ÷ 21 ÷…Financial Accounting CMulford: Financial Statement Analysis: 13 Using Return on Assets and Return on Equity to Compare Performance Across Companies Thiokol Corp. and Wyman-Gordon, Inc. In a recent fiscal year, Thiokol Corp. reported sales of $889.5 million and net income of $51.4 million. For the same year, Wyman-Gordon, reported sales of $499.6 million and net income of $25.2 million, about half the income of Thiokol. Both companies are in the same industry, aerospace and defense. Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 $ 51.4 $ 818.3 $ 447.9 Wyman-Gordon $ 499.6 $ 25.2 $ 375.9 $ 109.9 Sales Net income Total assets Shareholders' equity Calculate: Return on assets Return on equity Why is Return on equity so different for the two companies?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
- ROI and Margin Arbus Company provided the following information: Turnover 1.3 Operating assets $106,000 Operating income 6,620 Required: 1. What is ROI? (Round your answer to three decimals.) 0.062 ✓ 2. What is margin? (Round your answer to two decimals.) X FeedbackVertical analysis Two income statements for Cornea Company follow: Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Fees earned $1,570,000 $1,300,000 Expenses (832,100) (780,000) Net income $737,900 $520,000 Required: a. Prepare a vertical analysis of Cornea Company’s income statements. If required, round your percentage to the nearest whole number. Cornea Company Income Statements For the Years Ended December 31 20Y9 20Y8 Amount Percent Amount Percent Fees earned $1,570,000 % $1,300,000 % Expenses (832,100) % (780,000) % Operating income $737,900 % $520,000 % b. Does the vertical analysis indicate a favorable or an unfavorable trend?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
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