Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

Question

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Answer 1

Question

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.

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Students have asked these similar questions

Please provide answer this general accounting question

Premier Lighting Co. shows Merchandise Inventory of $35,000. Based on a count taken on December 31, merchandise inventory at the end of the year actually totaled $28,000. The adjusting entry to remove the old merchandise inventory balance would be: A)a debit to Income Summary of $28,000 and a credit to Merchandise Inventory for The adjusting entry to remove the old merchandise inventory balance would be:

Please provide the answer to this general accounting question with proper steps.

Answer 2

Question

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.

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Answer 3

Question

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.

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Answer 4

Question

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.

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Answer 5

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.

Answer 6

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

Answer 7

Chapter 13, Problem 1BTN

1.

To determine

To compute: Year 2013, 2014 and 2015 trend percents for net sales, cost of sales, operating income, other income(expense)net, provision for income taxes and net income of A Company by using 2013 as base year.

Answer 8

1.

Expert Solution

Explanation of Solution

To compute trend percents, base amount is required firstly. Base amount is an amount which is predecided.

Formula to calculate trend percent is:

$Trend Percent (%)= Analysis Period Amount Base Period Amount ×100$

Trend percents are shown below:

Particulars	2015(%)	2014(%)	2013(%)
Net sales	136.75	106.95	100
Cost of sales	131.41	105.30	100
Operating income	145.37	107.15	100
Other income (expense) net	111.16	84.78	100
Provision for income taxes	145.76	106.52	100
Net income	144.16	106.68	100

Working Notes:

Trend percents for Sales:
$Trend percent 2015= $233,715 $170,910 ×100 =136.75%$

$Trend percent 2014= $182,795 $170,910 ×100 =106.95%$

$Trend percent 2013= $170,910 $170,910 ×100 =100%$

Trend percents for Cost of sales:
$Trend percent 2015= $140,089 $106,606 ×100 =131.41%$

$Trend percent 2014= $112,258 $106,606 ×100 =105.30%$

$Trend percent 2013= $106,606 $106,606 ×100 =100%$

Trend percents for operating income:
$Trend percent 2015= $71,230 $48,999 ×100 =145.37%$

$Trend percent 2014= $52,503 $48,999 ×100 =107.15%$

$Trend percent 2013= $48,999 $48,999 ×100 =100%$

Trend percents for other income (expense) net:
$Trend percent 2015= $1,285 $1,156 ×100 =111.16%$

$Trend percent 2014= $980 $1,156 ×100 =84.78%$

$Trend percent 2013= $1,156 $1,156 ×100 =100%$

Trend percents for provision for income tax:
$Trend percent 2015= $19,121 $13,118 ×100 =145.76%$

$Trend percent 2014= $13,973 $13,118 ×100 =106.52%$

$Trend percent 2013= $13,118 $13,118 ×100 =100%$

Trend percents for net income:
$Trend percent 2015= $53,394 $37,037 ×100 =144.16%$

$Trend percent 2014= $39,510 $37,037 ×100 =106.68%$

$Trend percent 2013= $37,037 $37,037 ×100 =100%$

Thus, Except other income (expenses). All other items show increased percents in every year.

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

Answer 13

2.

To determine

To compute: Common size percent of (a) total current assets (b) property, plant and equipment, net and (c) goodwill plus acquired tangible assets, net for A Company for the year 2014 and 2015.

Answer 14

2.

Expert Solution

Explanation of Solution

Formula to calculate common size percent is:

$Common Size Percent (%)= Analysis Year Amount Base Year Amount ×100$

Common size percents are shown below:

Particulars	2015(%)	2014(%)
(a) Total current assets	30.77	29.56
(b) Property, plant and equipment, net	7.74	8.9
(c) Goodwill plus acquired intangible assets, net	3.10	3.78

Working notes:

(a) Common size percents of total current assets:

$Common size percent 2015 = $89,378 $290,479 ×100 =30.77%$

$Common size percent 2014 = $68,531 $231,839 ×100 =29.56%$

(b) Common size percents of property, plant and equipment, net:

$Common size percent 2015 = $22,471 $290,479 ×100 =7.74%$

$Common size percent 2014 = $20,624 $231,839 ×100 =8.9%$

(c) Common size percents of goodwill plus acquired intangible assets, net:

$Common size percent 2015 = $9009 $290,479 ×100 =3.10%$

$Common size percent 2014 = $8758 $231,839 ×100 =3.78%$

Answer 15

2.

Expert Solution

Answer 16

2.

Expert Solution

Answer 17

Expert Solution

Answer 18

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.

Answer 19

3.

To determine

To explain: Changes across the year for the income statement trends computed in part 1 and the balance sheet percents computed in part 2.

Answer 20

3.

Expert Solution

Explanation of Solution

Trend percents of income statement items represent an increased trend. Such as net sales trend percent is 136.75 in the year 2015 and 106.95 in the 2014 same has been increases with 29.8 (136.75-106.95).
Only other income is reduced in 2014, all other income statement trends show increased numbers.
Common size percent of balance sheet items shows increase in the current assets of the company. For example total current assets of the company have been increased to 30.77% in 2015 year from 29.56% in 2014.
Other assets marginaly reduced in 2015 as a percentage of total assets.

Thus, A Company works quite efficiently.