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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Luxottica Group , the Italian company that sells Ray Ban and Oakley sunglasses, reported net
sales of €7.1 billion in 2012 and €6.2 billion in 2011. Gross profit increased from €4.1 billion in
2011 to €4.7 billion in 2012. Was the increase in gross profit caused by ( a ) an increase in gross
profit per sale, ( b ) an increase in sales volume, or ( c ) a combination of ( a ) and ( b )?
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- Hasbro, Incorporated, sells toys and games in over 120 countries, including popular brands such as Nerf and Play-Doh. The following are selected financial data for the company for the period 2012 to 2016. Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (X) Growth rate in sales (%) Source: Data from Hasbro 2012 to 2016 annual reports Year 2012 2013 2014 2015 2016 2012 Sustainable Growth Rate % % % % % 8.7 33.2 1.02 3.17 (5.2) 2013 7.7 46.2 0.97 2.97 (3.2) 2014 Calculate Hasbro's annual sustainable growth rate from 2012 through 2016. Note: Round your answers to 1 decimal place. 10.2 48.2 0.98 2.72 5.2 2015 11.2 57.0 0.98 3.27 4.7 2016 12.2 55.2 1.03 3.17 13.2arrow_forwardThe 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)…arrow_forwardNeed Answerarrow_forward
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