Horizontal analysis Two income statements for Paragon Company follow: Paragon Company Income Statements For the Years Ended December 31 20Y7 20Y6 $1,416,000 (1,044,000) $372,000 $1,200,000 (900,000) $300,000 Fees earned Expenses Net income Prepare a horizontal analysis of Paragon Company's income statements. Paragon Company Income Statements For the Years Ended December 31 20Y7 20Y6 Fees earned $1,416,000 $1,200,000 Expenses (1,044,000) (900,000) Net income $372,00 $300,000 Increase/(Decrease) Increase/(Decrease) Amount Percent $ % % %

Horizontal analysis Two income statements for Paragon Company follow: Paragon Company Income Statements For the Years Ended December 31 20Y7 20Y6 $1,416,000 (1,044,000) $372,000 $1,200,000 (900,000) $300,000 Fees earned Expenses Net income Prepare a horizontal analysis of Paragon Company's income statements. Paragon Company Income Statements For the Years Ended December 31 20Y7 20Y6 Fees earned $1,416,000 $1,200,000 Expenses (1,044,000) (900,000) Net income $372,00 $300,000 Increase/(Decrease) Increase/(Decrease) Amount Percent $ % % %

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 25BEB: Jasmine Company provided the following income statements for its first 3 years of operation: Refer...

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Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 3 by expressing each line item for Year 3 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Comprehensive income Anson Industries, Inc., reported the following information on its 20Y1 income statement: Prepare the following for Anson Industries, Inc.: A. Income statement, including comprehensive income. B. Income statement and a separate statement of comprehensive income.
Jasmine Company provided the following income statements for its first 3 years of operation: Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)
The income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Refer to the information for Somerville Company on the previous pages. Also, assume that the price per common share for Somerville is 8.10. Required: Compute the price-earnings ratio. (Note: Round the answer to two decimal places.)
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Here are the comparative income statements of Ivanhoe Corporation. IVANHOE CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $612,400 $531,500 Cost of goods sold 447,500 409,400 Gross Profit 164,900 122,100 Operating expenses 78,000 49,600 Net income $ 86,900 $ 72,500 (a)Prepare a horizontal analysis of the income statement data for Ivanhoe Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) IVANHOE CORPORATIONComparative Income Statementchoose the accounting period Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales $612,400 $531,500 $enter a dollar amount enter percentages…
Here are the comparative income statements of Cullumber Corporation. CULLUMBER CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $639,400 $578,200 Cost of goods sold 464,800 433,400 Gross Profit 174,600 144,800 Operating expenses 70,500 43,000 Net income $ 104,100 $ 101,800 (a)Prepare a horizontal analysis of the income statement data for Cullumber Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CULLUMBER CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net…
Current Attempt in Progress Here are the comparative income statements of Oriole Corporation. ORIOLE CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $632,300 $544,800 Cost of goods sold 456,600 415,500 Gross Profit 175,700 129,300 Operating expenses 74,100 44,500 Net income $ 101,600 $ 84,800 (a)Prepare a horizontal analysis of the income statement data for Oriole Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) ORIOLE CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021…
Horizontal Analysis of the Income Statement Income statement data for Boone Company for the years ended December 31, 20Y5 and 20Y4, are as follows: Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax Income tax expenses Net income 20Y5 $748,200 (622,300) $125,900 $(36,890) (33,020) $(69,910) $55,990 (22,400) $33,590 20Y4 Boone Company $580,000 (490,000) $90,000 $(31,000) (26,000) $(57,000) $33,000 (13,200) $19,800 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for 20Y5 when compared with 20Y4. Round percentage answers to one decimal place.
Here are the comparative income statements of Pharoah Corporation. PHAROAH CORPORATIONComparative Income StatementFor the Years Ended December 31 2022 2021 Net sales $609,000 $500,400 Cost of goods sold 463,000 428,500 Gross Profit 146,000 71,900 Operating expenses 77,800 40,300 Net income $ 68,200 $ 31,600 (a)Prepare a horizontal analysis of the income statement data for Pharoah Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) PHAROAH CORPORATIONComparative Income Statementchoose the accounting period For the Years Ended December 31For the Month Ended December 31December 31 Increase or (Decrease) During 2022 2022 2021 Amount Percentage Net sales…