Question 2The comparative income statement of Zalora Company appears below:Zalora CompanyComparative Statements of Comprehensive Incomefor the years ended 31 December2020 (RM)2019 (RM)Net sales750.000650,000Less: ExpensesCost of goods soldSelling expensesInterest expense388,000330,000108,00096,00010,00010,000Income tax expense18,0006,000Other expense2,000Add: Other income2,000Net income224,000210,000Instructions(a) Prepare a horizontal analysis of the Statements of Comprehensive Income datafor Zalora Company using 2019 as a base.(b) Prepare a vertical analysis of the Statements of Comprehensive Income data forZalora Company for 2019 & 2020.(c) State whether 2020 was a good year or a bad year and give a reason.

Horizontal Analysis: Horizontal analysis is a technique of financial statement analysis, which shows…

Question 2 The comparative income statement of Zalora Company appears below: Zalora Company Comparative Statements of Comprehensive Income for the years ended 31 December 2020 (RM) 2019 (RM) Net sales 750,000 650,000 Less: Expenses Cost of goods sold Selling expenses Interest expense 388,000 330,000 108,000 96,000 10,000 10,000

Question 2 The comparative income statement of Zalora Company appears below: Zalora Company Comparative Statements of Comprehensive Income for the years ended 31 December 2020 (RM) 2019 (RM) Net sales 750,000 650,000 Less: Expenses Cost of goods sold Selling expenses Interest expense 388,000 330,000 108,000 96,000 10,000 10,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

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Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income (a) 2021 $1,595 900 695 524 171 80 Your answer is incorrect. 91 25 $66 2020 $1,387 $1,208 743 644 411 233 50 183 2019 46 596 612 402 210 40 170 43 $137 $127 Using horizontal analysis, calculate the horizontal percentage of a base-year amount, assuming 2019 is the base year. (Round answers to 1 decimal place, e.g. 5.2%. Enter negative amounts using either a negative sign preceding the number e.g. -45.1% or parentheses e.g. (45.1) %.)
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The comparative statements of Pharoah Company are presented here: Pharoah CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,898,740 $1,758,700 Cost of goods sold 1,066,740 1,014,200 Gross profit 832,000 744,500 Selling and administrative expenses 508,200 487,200 Income from operations 323,800 257,300 Other expenses and losses Interest expense 23,400 21,400 Income before income taxes 300,400 235,900 Income tax expense 93,400 74,400 Net income $207,000 $161,500 Pharoah CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 126,000 111,000 Inventory 127,400 116,900 Total current assets 387,500 342,100 Plant assets…
[The following information applies to the questions displayed below.] 2021 2020 2019 Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments. Plant assets, net Total assets Numerator: 2021 2020 2019 $548,688 $ 420,340 $ 291,700 330,310 263,974 186,688 156,366 KORBIN COMPANY Comparative Balance Sheets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 218,378 77,914 49,382 127,296 91,082 16,941 1 1 / 1 1 58,007 36,990 94,997 61,369 12,581 $ 74,141 $ 48,788 December 31 2021 $ 62,574 0 Current Ratio 114,438 $ 177,012 $ 25,844 65,000 8,125 78,043 Required: 1. Complete the below table to calculate each year's current ratio. Denominator: $ 41,881 $…
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