Vertical analysis Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement. EBITDA: EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered. To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

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Answer 1

Question

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)

Answer 2

Question

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

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Answer 3

Question

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

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Answer 4

Question

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

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Answer 5

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

Answer 6

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

Answer 7

Chapter 6, Problem 1ADM

A.

To determine

Vertical analysis

Vertical analysis is the method of financial statement analysis, and it is useful for evaluating company’s performance and financial condition. Vertical analysis is helpful for analyzing the changes in the financial statements over the time, and comparing each item on a financial statement with a total amount from the same statement.

EBITDA:

EBITA is operating income that is expressed by adding back depreciation and amortization expenses. This amount termed as Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the EBITDA calculation, fixed expenses and non-cash items are not considered.

To prepare: A vertical analysis of the sales as a percent of total sales for the five segments.

Answer 8

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

Answer 9

B.

To determine

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

Answer 10

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

Answer 11

C.

To determine

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

Answer 12

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

Answer 13

D.

To determine

To interpret: The analysis in EBITDA margin calculated in Part C.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 6 - What types of costs are customarily included in...Ch. 6 - Which type of manufacturing cost (direct...Ch. 6 - Which of the following costs would be included in...Ch. 6 - In the variable costing income statement, how are...Ch. 6 - Prob. 5DQ Ch. 6 - Discuss how financial data prepared on the basis...Ch. 6 - Prob. 7DQ Ch. 6 - Explain why rewarding sales personnel on the basis...Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Solution Summary: The author explains how vertical analysis is useful for evaluating company's performance and financial condition.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the five segments.

The EBITDA as a percent of sales (EBITDA margin) for the five segments.

To interpret: The analysis in EBITDA margin calculated in Part C.

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Chapter 6 Solutions