A condensed income statement for Northeast Airlines and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) NORTHEAST AIRLINES Income Statement (summarized) For the Year Ended December 31 (in millions of U.S. dollars) 2016 2015 Sales Revenues $ 20,925 100 % $ 20,320 100 % Salaries and Wages Expense 6,823 33 6,408 Fuel, Oil, Repairs, and Maintenance 4,717 4,646 Other Operating Expenses 5,200 4,725 23 Other Expenses (Revenues) 238 1 652 3 Income before Income Tax Expense 3,947 19 3,889 19 Income Tax Expense 1,370 7 1,361 7 Net Income $ 2,577 % $ 2,528

A condensed income statement for Northeast Airlines and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) NORTHEAST AIRLINES Income Statement (summarized) For the Year Ended December 31 (in millions of U.S. dollars) 2016 2015 Sales Revenues $ 20,925 100 % $ 20,320 100 % Salaries and Wages Expense 6,823 33 6,408 Fuel, Oil, Repairs, and Maintenance 4,717 4,646 Other Operating Expenses 5,200 4,725 23 Other Expenses (Revenues) 238 1 652 3 Income before Income Tax Expense 3,947 19 3,889 19 Income Tax Expense 1,370 7 1,361 7 Net Income $ 2,577 % $ 2,528

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information was available for the year ended December 31, 2016: Sales $ 460,000 Net income 66,140 Average total assets 760,000 Average total stockholders' equity 365,000 Dividends per share 1.33 Earnings per share 3.00 Market price per share at year-end 27.60 a. Calculate margin, turnover, and ROI for the year ended December 31, 2016. (Round your intermediate calculations and final answers to 2 decimal places.) b. Calculate ROE for the year ended December 31, 2016. (Round your answer to 2 decimal places.) c. Calculate the price/earnings ratio for 2016. (Round your answer to 2 decimal places.) d. Calculate the dividend payout ratio for 2016. (Round your answer to 2 decimal places.) e. Calculate the dividend yield for 2016. (Round your answer to 2 decimal places.)
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What is the impact on retained earnings each year?