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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
![b. Does the percentage that you calculated in Fuel, Oil, Repairs, and Maintenance suggest that fuel costs, as
a percentage of sales, decreased, increased, or stayed the same in 2016 compared to 2015?
O Increased
O Decreased
O Stayed the same
c. Is Northeast's net profit margin improving, declining, or staying the same from 2015 to 2016?
O Improving
O Declining
O Staying the same](https://content.bartleby.com/qna-images/question/176205cf-6965-40e9-a799-ef0e1b5def40/74e134ba-a920-4130-8955-2935c8ef46c6/aqjt2js_thumbnail.png)
Transcribed Image Text:b. Does the percentage that you calculated in Fuel, Oil, Repairs, and Maintenance suggest that fuel costs, as
a percentage of sales, decreased, increased, or stayed the same in 2016 compared to 2015?
O Increased
O Decreased
O Stayed the same
c. Is Northeast's net profit margin improving, declining, or staying the same from 2015 to 2016?
O Improving
O Declining
O Staying the same
![A condensed income statement for Northeast Airlines and a partially completed vertical analysis are
presented below.
ts
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.)
еВook
Print
NORTHEAST AIRLINES
Income Statement (summarized)
For the Year Ended December 31
eferences
(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
Income before Income Tax Expense
3,947
19
3,889
19
Income Tax Expense
Net Income
1,370
7
1,361
7
$ 2,577
% $ 2,528
%
中](https://content.bartleby.com/qna-images/question/176205cf-6965-40e9-a799-ef0e1b5def40/74e134ba-a920-4130-8955-2935c8ef46c6/08urg6_thumbnail.png)
Transcribed Image Text:A condensed income statement for Northeast Airlines and a partially completed vertical analysis are
presented below.
ts
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.)
еВook
Print
NORTHEAST AIRLINES
Income Statement (summarized)
For the Year Ended December 31
eferences
(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
Income before Income Tax Expense
3,947
19
3,889
19
Income Tax Expense
Net Income
1,370
7
1,361
7
$ 2,577
% $ 2,528
%
中
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