Revenue is the total income earned by an organization by selling goods or rendering services. Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below: Net income = Gross profit − Operating expenses To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

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Answer 1

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Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

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Answer 2

Question

Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

Answer 6

Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

Answer 7

Chapter 5, Problem 5.1EYCT

(a)

To determine

Revenue is the total income earned by an organization by selling goods or rendering services.

Net income represents the revenue after the deduction of operating expenses from the gross profit. Its mathematical representation is as below:

Net income=Gross profit−Operating expenses

To Compute: The percentage change in total revenue, and in net income from 2013 to 2014 for Incorporation A.

Answer 8

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

Answer 9

(b)

To determine

Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income and net sales. It is calculated by using the following formula:

Profit Margin=Net incomeNet sales×100

To Calculate: The profit margin for the year 2012, 2013, and 2014 of Incorporation A.

Answer 10

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

Answer 11

(c)

To determine

Gross profit rate is the financial ratio that evaluates the money left over out of the total revenues after deducting the cost of goods sold. Thus, it shows the relationship between the gross margin and net sales. It is calculated by using the following formula:

Gross profit rate=Gross profitNet sales×100

To Calculate: The gross profit rate for the year 2012, 2013, and 2014 of Incorporation A.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the percentage change in total revenue and net income from 2013 to 2014 for Incorporation A.

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