(Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands): Cool Brewery Ltd. Northern Beer Ltd. 2020 2019 2020 2019 Net sales $203,130 $43,450 Cost of goods sold 98,980 16,160 Operating expenses 83,840 17,460 Interest expense 7,810 410 Income tax expense 4,430 1,020 Cash 11,630 $9,020 4,840 $2,480 Other current assets 90,330 73,510 7,610 7,030 Long-term assets (net) 191,910 195.830 28,170 30,180 Current liabilities 73,120 62,650 3,510 4,140 Long-term liabilities 105,350 110,690 7,630 6,970 Share capital 47,500 51,500 17,000 17,000 Retained earnings 67,900 53,520 12,480 11,580 Prepare a common-size analysis for 2020 for Cool Brewery Ltd. and Northern Beer Ltd. (Round percentage answers to 1 decimal place, e.g. 15.1%.)
(Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands): Cool Brewery Ltd. Northern Beer Ltd. 2020 2019 2020 2019 Net sales $203,130 $43,450 Cost of goods sold 98,980 16,160 Operating expenses 83,840 17,460 Interest expense 7,810 410 Income tax expense 4,430 1,020 Cash 11,630 $9,020 4,840 $2,480 Other current assets 90,330 73,510 7,610 7,030 Long-term assets (net) 191,910 195.830 28,170 30,180 Current liabilities 73,120 62,650 3,510 4,140 Long-term liabilities 105,350 110,690 7,630 6,970 Share capital 47,500 51,500 17,000 17,000 Retained earnings 67,900 53,520 12,480 11,580 Prepare a common-size analysis for 2020 for Cool Brewery Ltd. and Northern Beer Ltd. (Round percentage answers to 1 decimal place, e.g. 15.1%.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 1MCQ
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