1. Explanation Vertical Analysis: The comparison of an item of a financial statement against the total amount of the same financial statement, to determine the relation between the two items, is referred to as vertical analysis Complete the vertical analysis by expressing each line as a percentage of total revenues of Company SA. Company SA Income Statement December 31 Particulars 2016 2015 Amount Percent Amount Percent ( $) (%) ( $) (%) Sales revenues 20,425 100 19,820 100 Salaries and wages expenses 6,798 34 6,383 32 (d) Fuel, oil Repairs and maintenance 4,692 23 (a) 4,621 23 (e) Other Operating Expense 5,175 25 (b) 4,700 24 Other Expense (Revenues) 213 1 637 3 Income before income tax expense 3,547 17 3,479 18 Income tax expense 1,303 6 1,298 7 Net income 2,244 11(c) 2,181 11(f) (Table 1) Working note (a): Calculate the percentage of Fuel, oil, repairs and maintenance in percentage for the year 2016. Fuel , oil, repairs, maintainence in percentage } = ( Fuel , oil, repairs, maintainence ) Sales revenues = $4,692 $20,425 =23% Working note (b): Calculate the percentage of other operating expense for the year 2016. Other operating expense in percenatge } = ( Other operating expense ) Sales revenue = $5,175 $20,425 =25% Working note (c): Calculate the percentage of net income for the year 2016 2. To determine State the performance of Company SA in fuel and oil for the year 2016 as compared to 2015. 3. To determine Identify whether Company SA’s net margin has been increased or decreased in the year 2016.

Loose Leaf For Fundamentals Of Financial Accounting

6th Edition

ISBN: 9781260159547

Author: Phillips Associate Professor, Fred, Libby, Robert, Patricia

Publisher: McGraw-Hill Education

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Question

Chapter 13, Problem 4PB

To determine

Complete the vertical analysis of Company SA

To determine

State the performance of Company SA in fuel and oil for the year 2016 as compared to 2015.

To determine

Identify whether Company SA’s net margin has been increased or decreased in the year 2016.

Expert Solution & Answer

Chapter 13 Solutions

Loose Leaf For Fundamentals Of Financial Accounting

Ch. 13 - What is the general goal of trend analysis?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 - Prob. 6Q Ch. 13 - Slow Cellars current ratio increased from 1.2 to...Ch. 13 - From last year to this year, Colossal Companys...Ch. 13 - From last year to this year, Berry Bam reported...Ch. 13 - Explain whether the following situations, taken...

Ch. 13 - What are the two essential characteristics of...Ch. 13 - Prob. 12Q Ch. 13 - Prob. 13Q Ch. 13 - Prob. 14Q Ch. 13 - Prob. 15Q Ch. 13 - Prob. 16Q Ch. 13 - 1. Which of the following ratios is not used to...Ch. 13 - Prob. 2MC Ch. 13 - Prob. 3MC Ch. 13 - Analysts use ratios to a. Compare different...Ch. 13 - Which of the following ratios incorporates stock...Ch. 13 - Prob. 6MC Ch. 13 - Prob. 7MC Ch. 13 - A bank is least likely to use which of the...Ch. 13 - Prob. 9MC Ch. 13 - (Supplement 13A) Which of the following items is...Ch. 13 - Calculations for Horizontal Analyses Using the...Ch. 13 - Calculations for Vertical Analyses Refer to M13-1....Ch. 13 - Interpreting Horizontal Analyses Refer to the...Ch. 13 - Interpreting Vertical Analyses Refer to the...Ch. 13 - Prob. 5ME Ch. 13 - Prob. 6ME Ch. 13 - Prob. 7ME Ch. 13 - Analyzing the Inventory Turnover Ratio A...Ch. 13 - Inferring Financial Information Using the Current...Ch. 13 - Prob. 10ME Ch. 13 - Identifying Relevant Ratios Identify the ratio...Ch. 13 - Prob. 12ME Ch. 13 - Analyzing the Impact of Accounting Alternatives...Ch. 13 - Describing the Effect of Accounting Decisions on...Ch. 13 - Prob. 1E Ch. 13 - Prob. 2E Ch. 13 - Prob. 3E Ch. 13 - Prob. 4E Ch. 13 - Prob. 5E Ch. 13 - Matching Each Ratio with Its Computational Formula...Ch. 13 - Computing and Interpreting Selected Liquidity...Ch. 13 - Prob. 8E Ch. 13 - Prob. 9E Ch. 13 - Prob. 10E Ch. 13 - Prob. 11E Ch. 13 - Prob. 12E Ch. 13 - Prob. 13E Ch. 13 - Prob. 14E Ch. 13 - Analyzing the Impact of Alternative Inventory...Ch. 13 - Prob. 1CP Ch. 13 - Prob. 2CP Ch. 13 - Prob. 3CP Ch. 13 - Prob. 4CP Ch. 13 - Prob. 5CP Ch. 13 - Prob. 6CP Ch. 13 - Prob. 7CP Ch. 13 - Prob. 1PA Ch. 13 - Prob. 2PA Ch. 13 - Prob. 3PA Ch. 13 - Prob. 4PA Ch. 13 - Prob. 5PA Ch. 13 - Using Ratios to Compare Loan Requests from Two...Ch. 13 - Prob. 7PA Ch. 13 - Prob. 1PB Ch. 13 - Prob. 2PB Ch. 13 - Prob. 3PB Ch. 13 - Prob. 4PB Ch. 13 - Prob. 5PB Ch. 13 - Using Ratios to Compare Loan Requests from Two...Ch. 13 - Prob. 7PB Ch. 13 - Prob. 1SDC Ch. 13 - Prob. 2SDC Ch. 13 - Prob. 5SDC Ch. 13 - Prob. 6SDC Ch. 13 - Prob. 7SDC Ch. 13 - Prob. 1CC

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