Horizontal analysis of income statement: In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base. To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

Question

During September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.

Answer 1

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Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

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During September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.

Bluesy Electronics recorded the following financial data: Net Sales $720,500 Average Inventory at Cost = $80,200 Gross Margin Percentage = 42% Calculate the GMROI.

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Answer 2

Question

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Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

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Answer 3

Question

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Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

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Answer 4

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Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

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Answer 5

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Answer 7

Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

Answer 8

Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

Answer 9

Chapter 2, Problem 2.24EX

(a)

To determine

Horizontal analysis of income statement:

In horizontal analysis of income statement, the amount of each item of the current year financial statement is compared with the previous year financial statement. The amount of each item increased or decreased in the current income statement, and its respective percentage can be computed by taking the earlier statement as the base.

To determine: The amount of change in millions, and the percentage of change from the prior year to the recent year.

Answer 10

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

Answer 11

(b)

To determine

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

Answer 12

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

Answer 13

(c)

To determine

To compare: The conclusions on the operating results of Corporation T and Corporation C.

Answer 14

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Solution Summary: The author analyzes the revenue, and operating expenses of Corporation C and compares their results.

To discuss: The conclusions drawn from the analysis of the revenue, and the operating expenses.

To compare: The conclusions on the operating results of Corporation T and Corporation C.

Chapter 2 Solutions