ILLUSTRATION 3. From the following Income Statement of X Ltd. prepare a Comparative Income Statement and interpret the results: (Amount in Lak $ For the year ended 31st March 2015 2016 Net Sales 1,370 838 1,442 926 Cost of Goods Sold Gross Profit Operating Expenses : Administrative Expenses Selling Expenses 532 516 92 94 188 182 282 274 Operating Profit Add : Other Income-Dividend 250 242 44 50 294 292 44 Less : Other Deductions-Interest paid 44 Net Profit before Tax Less : Income-tax 250 248 124 124 Net Profit after Tax 126 124

ILLUSTRATION 3. From the following Income Statement of X Ltd. prepare a Comparative Income Statement and interpret the results: (Amount in Lak $ For the year ended 31st March 2015 2016 Net Sales 1,370 838 1,442 926 Cost of Goods Sold Gross Profit Operating Expenses : Administrative Expenses Selling Expenses 532 516 92 94 188 182 282 274 Operating Profit Add : Other Income-Dividend 250 242 44 50 294 292 44 Less : Other Deductions-Interest paid 44 Net Profit before Tax Less : Income-tax 250 248 124 124 Net Profit after Tax 126 124

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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Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million) Year End 2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost of Sales -679.1 -659 -681.3 -667 Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income/Expenses 11.8 7.6 7 8.2 Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Income Taxes -56.8 -64.2 -67.5 -72.6 Dividends -38.3 -38.7 -39.8 -40.1 CHOICES: A. 108.7B. 132.7C. No choice givenD. 132.8E. 121.8
GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…
Common-Size Income Statement 2016 Revenues $ 29,970 % Cost of goods sold (20,030) Gross profit $ 9,940 % Operating expenses (8,030) Net operating income $ 1,910 % Interest expense (860) Earnings before taxes $ 1,050 % Income taxes (382) Net income $ 668 % Required: 1) Prepare Common size income statement
U6.
Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Yes
Perform the following: a. horizontal analysis b. vertical analysis c. ratio analysis d. interpret the results
Cochran corporation, Inc. has the following income statement: Cochran corporation, Inc. Income statement For the year ended December 31, 2021 net sales $240 Cost of goods sold $150 gross profit $90 Operating expenses $65 Net income $25 Using vertical analysis, what percentage is assigned to operating expenses? a. 27,1% b. 43.3% c. 72.2% d. 260.0%
answer the questions
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10: Application of Financial Ratios Used to Measure Profitability The income statement of Garnet Mfg. Corp. for 2018 shows the following: Sales, net P 700,000 15,000 400,000 Net credit sales Cost of goods sold Cost of goods manufactured Net credit purchases 410,000 150,000 225,000 90,000 212,500 20,000 Raw materials used Net income Total operating expenses Depreciation Net income 90,000 The balance sheet figures as of December 31, 2017 and 2018 are as follows: December 31 2017 2018 P12,500 P 25,000 Cash 17,500 28,750 Marketable securities 10,000 20,000 Accounts receivable, net Inventories: 25,000 35,000 Finished goods Work in process 22,500 15,000 3,750 P 150,000 37,500 17,500 10,000 Raw materials Prepaid expenses Total current assets 2,500 P95,000 37,500 Investments 117,500 187,500 Plant, property and equipment, net
Q4. Comparative financial statement data of Field, Inc., follow: FIELD, INC. Comparative Income Statement Years Ended December 31, 2016 and 2015 VERTICAL HORIZONTAL Increase (Decrease) Amount Percent Net sales (all sales on credit) Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income tax Income tax expense Net income Current assets: Cash Current receivables Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Total assets Total current liabilities Long-term liabilities Total liabilities Capital Total liabilities and equity 2016 $ 500,000 250,000 $ 250,000 140,000 $ 110,000 10,000 $ 100,000 30,000 $ 70,000 2015 $ 400,000 150,000 $ 250,000 100,000 $ 150,000 2016 20,000 $ 130,000 50,000 $ 80,000 FIELD, INC. Comparative Balance Sheet December 31, 2016 and 2015 HORIZONTAL VERTICAL 2015 2016 2015 Percent Percent $ 88,000 121,000 158,000 Increase (Decrease) 2016 2015 Amount Percent Percent Percent $…
1. Utilize the comparative income statement for the amounts needed. Al-Can Products, Inc. Comparative Income Statement For Years Ended December 31, 20xx and 20xx Net Sales Cost of Merchandise Sold Gross Profit on Operations Total Operating Expenses Net Income Before Federal Income Tax Federal Income Tax Expense Net Income After Federal Income Tax Total Stockholders' Equity Net Sales Net Income After Tax Stockholders' Equity CURRENT YEAR Amount $426,500.00 $268,700.00 $157,800.00 $110,800.00 $47,000.00 $7,100.00 $39,900.00 $195,000.00 2. Calculate the amount and percent of increase or decrease from the prior year to the current in the table below. State whether the trend is favorable or unfavorable. Increase (Decrease) PRIOR YEAR Percent $346,800.00 $245,200.00 $101,600.00 $85,200.00 $16,400.00 $2,500.00 $13,900.00 $186,000.00 Trend