Prepare a horizontal analysis of Nebraska Technologies's income statements. For decreases or negative numbers use a minus sign. Round percentages to one decimal place. Increase (Decrease) Percent Favorable/Unfavorable 1 2 3 4 5 6 7 Sales Wage expense Rent expense Utilities expense Total operating expenses Net income Year 2 $158,400.00 $80,000.00 28,000.00 30,000.00 Year 1 $162,500.00 $92,500.00 30,000.00 25,000.00 $138,000.00 $147,500.00 $20,400.00 $15,000.00

Prepare a horizontal analysis of Nebraska Technologies's income statements. For decreases or negative numbers use a minus sign. Round percentages to one decimal place. Increase (Decrease) Percent Favorable/Unfavorable 1 2 3 4 5 6 7 Sales Wage expense Rent expense Utilities expense Total operating expenses Net income Year 2 $158,400.00 $80,000.00 28,000.00 30,000.00 Year 1 $162,500.00 $92,500.00 30,000.00 25,000.00 $138,000.00 $147,500.00 $20,400.00 $15,000.00

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 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

See similar textbooks

Similar questions

The comparative financial statements of Seward, Inc. include the following data: Current Year Prior Year Income Statement Net Sales Revenue $142,000 $112,000 Cost of Goods Sold 61,000 53,000 Operating Expenses Interest Expense 40, 200 33,200 4,700 4,700 Income Tax Expense 6, 200 29,900 5,200 Net Income 15,900 Balance Sheet Current Assets 127,000 107,000 Plant, Property and Equipment, Net Current Liabilities 110,000 117,000 51,000 44,000 49,000 131,000 224,000 49,000 Long-Term Liabilities Shareholders' Equity Total Liabilities & Shareholders' Equity 137,000 237,000 Which of the following would be shown on Seward's horizontal analysis when calculating percentage changes from t current year? Multiple Choice
Comparative Income Statements Consider the following income statement data from the Ross Company: Current Year Previous Year $525,000 $451,000 336,000 280,000 105,000 100,000 60,000 55,000 7,800 6,400 Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANY Comparative Income Statements Sales Revenue Cost of Goods Sold Selling Expenses Administrative Expenses Total Income before Income Taxes Increase Current Year Previous Year (Decrease) $ $ $ $ $ $ Percent Change % % % % % % % % %
Requirement 1. Prepare a horizontal analysis of the comparative income statement of McCormick Designs, Inc. Round percentage changes to one decimal place. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) McCormick Designs, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 Increase (Decrease) 2024 2023 Amount Percentage Net Sales Revenue $429,000 $373,750 % Expenses: Cost of Goods Sold 204,000 190,450 % Selling and Administrative Expenses 96,000 91,050 % Other Expenses 7,450 5,750 % Total Expenses 307,450 287,250 % Net Income $121,550 $86,500 % Requirement 2. Why did 2024 net income increase by a higher percentage than net sales revenue? Net income increased by a higher percentage than total net…
This year Last year 1050 Assets Cash 1530 Marketable securities Accounts receivable Inventories Total current assets 1810 1220 2050 1770 2900 2790 8290 6830 Gross fixed assets 29480 28090 Less: Accumulated depreciation 14680 13140 Net fixed assets 14800 14950 Total assets Liabilities and Stockholders' Equity 23090 21780 Accounts payable Notes payable Accruals 1560 1540 2760 2160 190 350 Total current liabilities 4510 4050 Long-term debt Common stock Retained earnings Total stockholders' equity 5220 4970 9950 9950 3410 2810 13360 12760 Total liabilities and stockholders' equity 23090 21780
Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7
Assume the following sales data for a company: Current year $896,005 Preceding year 607,844 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? Oa. 47.4% Ob. 15.3% Oc. 32.2% Od. 79.6%
Complete the two final columns shown beside each item in Pinnacle Plus's comparative financial statements. (Decreases should be indicated by a minus sign. Round percentage values to 1 decimal place.) DINNACLE PLUe PINNACLE PLUS Horizontal Analysis Increase (Decrease) in the Current year (versus Previous year). Current Year Previous Year Amount Percentage Income Statement Sales Revenue 118,000 $ 53,600 64,400 $ 104,600 % Cost of Goods Sold 48,800 Gross Profit Operating Expenses Interest Expense 55,800 40,000 35,000 4,800 4,800 Income before Income Tax Expense 19,600 16,000 Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Note Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity 5,880 13,720 $ 4,800 11,200 % 69,620 $ 35,400 10,400 % 18,600 25,800 39,600 95,800 109,000 209,820 $ 194,400 $ 43,600 $ 35,800…
Prepare a horizontal analysis of Vaughn Company's income statements. Use the minus sign to indicate a decrease in the amount and percenta columns. Vaughn Company Income Statements For the Years Ended December 31 Amount Percent Increase/ (Decrease) (Decrease) 20Υ1 20γ0 Increase/ Fees earned $716,800 $896,000 $ Operating expenses 557,760 672,000 Net income $159,040 $224,000
Begin by calculating the gross profit for each year, then prepare a horizontal analysis of revenues and gross profitlong dash—both in dollar amounts and in percentageslong dash—for 20192019 and 20182018. (Enter amounts in millions as provided to you in the problem statement. Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) McDonald Corp. Income Statement - (Partial) Years Ended December 31, 2019 and 2018 (Amounts in millions) 2019 2018 2017 Revenues $9,575 $9,300 $8,975 Cost of Goods Sold 6,250 6,000 5,890 Gross Profit
a. Prepare a vertical analysls percents as whole numbers. Versatile Company Income Statements For the Years Ended December 31 20Y5 20Y5 Percent 20Y4 20Y4 Percent Amount Amount Fees earned $793,000 100 % $672,000 100 % Operating expenses 650,260 81 % 591,360 86 % Income from $142,740 19 % $80,640 14 % operations b. Does the vertical analysis indicate a favorable or an unfavorable trend?
Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. (Round percentages to two decimal places.) Year 2 Year 1 Revenues $394,000 $212,500 Operating expenses: Wages expense $ 79,000 $ 65,000 Rent expense 19,000 18,000 Utilities expense 21,000 14,200 Interest expense 7,500 7,800 Total operating expenses $126,500 $105,000 Net income $267,500 $107,500
Comparative Income Statements Consider the following income statement data from the Mono Company: Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense 2019 2018 $600,000 $450,000 336,000 279,000 105,000 99,000 60,000 50,000 4,000 3,000 Prepare a contparative income statement, showing increases, and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). Sales Revenue Cost of Goods Sold MONO COMPANY Comparative Income Statements ♦ Selling Expenses Administrative Expenses Total Income before Income Taxes ◆ → $ $ 2019 0 $ 0 0 0 0 oooo 0 0 $ 2018 Increase (Decrease) 0 $ 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 Percent Change 0% 0% 0% 0% 0% 0% 0% 0% 0 %