Metlock, Inc. has the following Income Statement (in millions): METLOCK, INC. Income Statement For the Year Ended December 31, 2023 Net Sales $178 Cost of Goods Sold 119 Gross Profit 59 Operating Expenses 40 Net Income $ 19 Using vertical analysis, what percentage is assigned to net sales? 100% 50% Can't be computed 150%

Metlock, Inc. has the following Income Statement (in millions): METLOCK, INC. Income Statement For the Year Ended December 31, 2023 Net Sales $178 Cost of Goods Sold 119 Gross Profit 59 Operating Expenses 40 Net Income $ 19 Using vertical analysis, what percentage is assigned to net sales? 100% 50% Can't be computed 150%

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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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
Sheffield Enterprises reports the following information for 2026: Net sales Cost of goods sold Average common stockholders' equity Average total assets Total assets Retained Earnings Net income Sheffield's gross profit margin is $2325000 1585650 1219000 679000 783000 596000 433000
Using the income statement information for Einsworth Corporation that follows, prepare a vertical analysis of the income statement for Einsworth Corporation. Einsworth Corporation Income Statement 1 Amount Percentage 2 Sales $1,200,000.00 3 Cost of goods sold 780,000.00 4 Gross profit $420,000.00
Waterway Corporation, Inc. has the following income statement (in millions): Waterway Corporation, Inc. Income Statement For the Year Ended December 31, 2017 Net Sales $390 Cost of Goods Sold 311 Gross Profit 79 Operating Expenses 40 Net Income $39 Using vertical analysis, what percentage is assigned to net income? 100% 90% O 10% O 17%
9 - The income statement of a Business for the period 2019 is as follows: 31.12.2019 % Gross sales 45.200 TL 102.72 Discounts From Sales 1.200 TL 2.72 Net Sales 44,000 TL 100.00 Cost of sales 12.500 TL 28.41 Gross Profit on Sales 31,500 TL 71.59 This table was prepared according to which of the following analysis methods? a) Technical analysis B) Analysis with Vertical Percentage Method NS) Ratio Analysis D) Comparative Tables Analysis TO) Trend Percentages Analysis
TASK THREЕ: Income Statement for the year ended 31 December 2020 Edward Frankie Company Company $ Sales 100,000 80,000 Less: Cost of goods sold 60,000 50,000 Gross Profit 40,000 30,000 Less: Expenses 36.000 18,000 Net Profit 4.000 12,000 1. Calculate the gross profit ratio, net profit ratio and expense to sales ratio for each of the company respectively. 2. Comment the profitability of the two companies.
VERTICAL ANALYSIS Give the analysis per line item. Sabina Electronics Comparative Income Statement This year Last year This year 5,000,000 3,875,000 1,125,000 653,000 472,000 72,000 400,000 120,000 280,000 110,000 Last year 4,350,000 3,450,000 900,000 548,000 352,000 72,000 280,000 84,000 196,000 95,000 Sales 100% 100% Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes 78% 79% 23% 21% 13% 13% 9% 8% 1% 2% 6% 2% 5% 2% 8% Income taxes (30%) Net income 2% 6% Common dividends 2% 101,000 579,000 680,000 Net income retained 170,000 3% 2% Beginning retained earnings Ending retained earnings 680,000 850,000
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Compare and contrast the net income margins of both Company A and B. Do you think the company with the lower net income margin is in absolute financial distress? Explain.
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