(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2012 and 2013 and comment on the same.

Question

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Answer 1

Question

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

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Answer 2

Question

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

Answer 6

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

Answer 7

Chapter 13, Problem 2E

To determine

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

Answer 8

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

Answer 9

To determine

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

Answer 10

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

Answer 11

To determine

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

Answer 12

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

Answer 13

To determine

(d)

Introduction:

Return on equity measures the effectiveness with which a company create profits using its assets. It is a part of the profitability ratio that measures the amount of profit that company earn with each dollar of shareholder’s equity.

To calculate:

The return on equity for 2013 and 2012 and comment on the same.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 13 - Prob. 1Q Ch. 13 - Prob. 2Q Ch. 13 - What is ratio analysis? Why is it useful? Ch. 13 - What benchmarks are commonly used for interpreting...Ch. 13 - Prob. 5Q Ch. 13 - Why are some analyses called horizontal and others...Ch. 13 - Slow Cellar’s current ratio increased from 1.2 to...Ch. 13 - From last year to this year. Colossal Company’s...Ch. 13 - From last year to this year, Berry Barn reported...Ch. 13 - Prob. 10Q

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2012 and 2013 and comment on the same.

Solution Summary: The author explains that gross profit percentage helps the company to compare gross margin to the net sales.

Videos

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

Want to see the full answer?

Chapter 13 Solutions

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2012 and 2013 and comment on the same.

Solution Summary: The author explains that gross profit percentage helps the company to compare gross margin to the net sales.

Videos

(a) Introduction: Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory. To calculate: The gross profit percentage for 2012 and 2013 and comment on the same.

(b) Introduction: Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue. To calculate: The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

(c) Introduction: Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets. To calculate: The fixed asset turnover ratio for 2013 and 2012 and comment on the same.

Want to see the full answer?

Chapter 13 Solutions

(a)

Introduction:

Gross profit percentage helps the company to compare gross margin to the net sales. This ratio tells the profitability at which company sells its inventory.

To calculate:

The gross profit percentage for 2012 and 2013 and comment on the same.

(b)

Introduction:

Profit margin ratio is calculated by dividing net income by the net sales. It helps in calculating the net income as a percentage of revenue.

To calculate:

The net profit margin for 2012 and 2013 and compare company could control its operating expenses from 2012 to 2013.

(c)

Introduction:

Asset turnover ratio calculates the ability of a company to generate sales with the fixed assets. A decline in the ratio means company has overinvested the amount in the fixed assets.

To calculate:

The fixed asset turnover ratio for 2013 and 2012 and comment on the same.