According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income 2018 $ 105,000 62,500 42,500 36,500 2017 $ 127,500 73,500 54,000 38,000 500 550 5,450 1,500 $ 3,950 $ 10,000 15,500 5,500 Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? 3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 in 2017. Compute the fixed asset turnover ratios for both years. Did the company better utilize its investment in fixed assets to generate revenues in 2018 or 2017? 4. Gonzalez reported average stockholders' equity of $54,500 in 2018 and $41,300 in 2017. The company has not issued preferred stock. Compute the return on equity ratios for both years. Did the company generate greater returns for stockholders in 2018 than in 2017?

Determining Cost of Goods Sold For a recent year, TechMart reported sales of $30,742 million. Its gross profit was $7,071 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)

The Cullumber Supply Company reported the following information for 2017. Prepare a common-size income statement for the year ended June 30, 2017. (Round answers to 1 decimal place, e.g. 52.7%.) Cullumber Supply CompanyIncome Statement for the Fiscal Year Ended June 30, 2017($ thousands)         % of Net Sales   Net sales   $2,111,000   enter percentages of net sales %   Cost of goods sold   1,464,000   enter percentages of net sales %   Selling and administrative expenses   312,200   enter percentages of net sales %   Nonrecurring expenses   27,600   enter percentages of net sales %   Earnings before interest, taxes, depreciation, and amortization (EBITDA)   $307,200   enter percentages of net sales %   Depreciation   117,000   enter percentages of net sales %   Earnings before interest and taxes (EBIT)   190,200   enter percentages of net sales %   Interest expense   118,600   enter percentages of net sales %   Earnings before taxes (EBT)…

Bellingham Industries, a manufacturer of the furniture industry, had the following               financial performance for the last two years as shown on their income statements below:                               Billingham Industries, Inc.     Comparative Income Statement     For the Years Ended December 31, 2021 and 2020           2021   2020           Amount   Amount       Sales   $1,280,000   $1,180,000       Cost of goods sold   644,800   613,600       Gross profit   635,200   566,400       Selling expenses   230,500   188,800       Administrative expenses   182,500   177,000       Total operating expenses   413,000   365,800       Income from operations   222,200   200,600       Other income   77,000   70,800       Income before income tax   299,200   271,400       Income tax expense   121,600   106,200       Net income   $177,600   $165,200                                     1. Prepare a horizontal analysis using the form provided to…

Blossom Corp.’s sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 575,500 units of product: sales $2,877,500, total costs and expenses $2,984,880, and net loss $107,380. Costs and expenses consisted of the amounts shown below.     Total   Variable   Fixed Cost of goods sold   $2,455,420   $1,887,640   $567,780 Selling expenses   287,750   105,892   181,858 Administrative expenses   241,710   78,268   163,442     $2,984,880   $2,071,800   $913,080 Management is considering the following independent alternatives for 2021. 1.   Increase unit selling price 20% with no change in costs, expenses, and sales volume. 2.   Change the compensation of salespersons from fixed annual salaries totaling $172,650 to total salaries of $69,060 plus a 4% commission on sales.   Compute the break-even point in dollars for 2020. Break-even point   $…

The CVP income statement for Blossom Machine Company for 2021 appears below. BLOSSOMMACHINE COMPANY Income Statement For the Year Ended December 31, 2021 Sales (42,000 units) $1,050,000 Variable expenses Contribution margin Fixed expenses Net income (loss) (b) Answer the following independent questions. (c) What was the company's break-even sales dollars in 2021? 735,000 Your answer is correct. eTextbook and Media 315,000 360,000 ($45,000) Break-even point in sales dollars $ Additional units Your answer is correct. How many additional units would the company have had to sell in 2022 to earn a net income of $45,000? eTextbook and Medial Number of units sold 1,200,000 12,000 Attempts: 3 of 5 used If the company reduces variable costs by $2.50 per unit in 2022 while other costs and unit revenues remain unchanged, how many units will the company have to sell to earn a net income of $45,000? (Round per unit value to 2 decimal places, e.g. 52.75. Final answer to O decimal places, e.g.…

Bellingham Industries, a manufacturer of the furniture industry, had the following               financial performance for the last two years as shown on their income statements below:                               Billingham Industries, Inc.     Comparative Income Statement     For the Years Ended December 31, 2021 and 2020           2021   2020           Amount   Amount       Sales   $1,280,000   $1,180,000       Cost of goods sold   644,800   613,600       Gross profit   635,200   566,400       Selling expenses   230,500   188,800       Administrative expenses   182,500   177,000       Total operating expenses   413,000   365,800       Income from operations   222,200   200,600       Other income   77,000   70,800       Income before income tax   299,200   271,400       Income tax expense   121,600   106,200       Net income   $177,600   $165,200                                     1. Prepare a horizontal analysis using the form provided to…

According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2018. Let's see whether these changes are reflected in the income statement of Gonzalez Industries for the year ended December 31, 2018. Sales Revenue Cost of Goods Sold Gross Profit Selling, General, and Administrative Expenses Interest Expense Income before Income Tax Expense Income Tax Expense Net Income Required 1 Required 2 Required 3 2018 $ 105,000 62,500 Required: 1. Compute the gross profit percentage for each year. Assuming the change from 2017 to 2018 is the beginning of a sustained trend, is Gonzalez likely to earn more or less gross profit from each dollar of sales in 2019? 2. Compute the net profit margin for each year. Did Gonzalez do a better or worse job of controlling operating expenses in 2018 relative to 2017? 3. Gonzalez reported average net fixed assets of $54,700 in 2018 and $45,600 in…