FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
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Question
Chapter 13, Problem 8QS
To determine
Introduction: Vertical analysis is done as a comparison or defining the relationship between the items of the same year. The representation is done vertically by determining the relative contribution made by each item to a particular item of the same year.
To prepare: The common-size percent of cost of goods sold.
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Students have asked these similar questions
Use the following selected Information from Letterman Corporation to determine the Year 1 and Year 2 common size percentages for cost of goods sold using Net sale
Year
Year
Net sales
Cost of goods sold
2$
538,600
$4
436,200
223,900
135,830
Operating expenses
Net earnings
81,640
78,680
41,260
29,260
Multiple Choice
123.5% for Year 2 and 100.0% for Year 1.
7.7% for Year 2 and 6.7% for Year 1.
56.7% for Year 2 and 49.2% for Year 1.
176.3% for Year 2 and 203.3% for Year 1.
41.6% for Year 2 and 31.1% for Year 1.
!
Required information
Use the following information to determine the prior year and current year trend percents for net sales using
the prior year as the base year.
($ thousands)
Net sales
Cost of goods sold
Current Year Prior Year
$ 802,971
394,306
$ 454,365
135,325
Current Year:
Prior Year:
Determine the Prior Year and Current Year common-size percents for cost of goods sold using net sales as the base. (Enter the
answers in thousands of dollars.)
Common-Size Percent for Cost of Goods Sold using Net Sales as the base:
Denominator:
Numerator:
Analysis period cost of goods sold
$
$
Check my work
394,306 /
135,325 / $
454,365
Common-size percents
0 %
29.78 %
Determine the Prior Year and Current Year common-size percents for cost of goods sold using net sales as the base. (Ente
answers in thousands of dollars.)
Current
Prior
($ thousands)
Year
Year
$ 805,182 $456,779
396,513
Net sales
Cost of goods sold
137,643
Common-Size Percent for Cost of Goods Sold using Net Sales as the base:
Choose Numerator:
IChoose Denominator:
Common-Size Percents
Current Year:
Prior Year:
II
II
Chapter 13 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 10QS
Ch. 13 - Prob. 11QSCh. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Prob. 15QSCh. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - Prob. 18QSCh. 13 - Prob. 19QSCh. 13 - Prob. 20QSCh. 13 - Prob. 21QSCh. 13 - Prob. 22QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Exercise 13-6 Common-size percents P2
Simon...Ch. 13 - Prob. 7ECh. 13 - Exercise 13-8 Liquidity analysis and...Ch. 13 - Exercise 13-9 Risk and Capital structure analysis...Ch. 13 - Exercise 13-10 Efficiency and Profitability...Ch. 13 - Exercise 13-11 profitability analysis P3 Refer to...Ch. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Problem 13-4A Calculation of financial statement...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Problem 13-6BAIncome statement computations and...Ch. 13 - Prob. 13SPCh. 13 - Prob. 1.1AACh. 13 - Prob. 1.2AACh. 13 - Prob. 1.3AACh. 13 - Prob. 2.1AACh. 13 - Prob. 2.2AACh. 13 - Prob. 2.3AACh. 13 - Prob. 3.1AACh. 13 - Prob. 3.2AACh. 13 - Prob. 3.3AACh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - ENTREPRENEURIAL DECISION A1 P1 P2 P3 BTN 13-7...
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