The management of Bataan Corporation ask you to submit an analysis of the increase in their gross profit in2021 based on their past two-year comparative income statements which show: 2021 2020 Sales 1,237,500 1,000,000 Cost of sales 950,000 800,000 Gross profit 287,000 200,000 The only known factor given is the sales price increased 12.5% beginning January 2021.

The management of Bataan Corporation ask you to submit an analysis of the increase in their gross profit in2021 based on their past two-year comparative income statements which show: 2021 2020 Sales 1,237,500 1,000,000 Cost of sales 950,000 800,000 Gross profit 287,000 200,000 The only known factor given is the sales price increased 12.5% beginning January 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The management of Bataan corporation asked you to submit an analysis of the increase in their gross profit in 2021 based on their past two-year comparative income statements which shows: sales =2020 -1,000,000; 2012- 1,237,500. Cost of Sales= 2020- 800,000; 2021- 950,000. Gross profit =2020- 200,000; 2021 - 287,000. The only known factor given to you is the sales price increased 12.5% beginning January 2021. The increase in gross profit due to increase in volume is a. 50,000 B. 35,000 C. 20,000 D. None of these
The management of Bataan corporation asked you to submit an analysis of the increase in their gross profit in 2021 based on their past two-year comparative income statements which shows: sales =2020 -1,000,000; 2012- 1,237,500. Cost of Sales= 2020- 800,000; 2021- 950,000. Gross profit =2020- 200,000; 2021 - 287,000. The only known factor given to you is the sales price increased 12.5% beginning January 2021. The increase in sales price caused an increase in gross profit by a. 100,000 B. 137500 C. 110,000 D. None of these
The management of Bataan corporation asked you to submit an analysis of the increase in their gross profit in 2021 based on their past two-year comparative income statements which shows: sales =2020 -1,000,000; 2012- 1,237,500. Cost of Sales= 2020- 800,000; 2021- 950,000. Gross profit =2020- 200,000; 2021 - 287,000. The only known factor given to you is the sales price increased 12.5% beginning January 2021. The percentage change in volume is: a. 12.750% B. 11% C. 15.125% D. None of these
What is the gross profit declined due to increase in cost in the amount? The management of Bataan Corporation ask you to submit an analysis of the increase in their gross profit in2021 based on their past two-year comparative income statements which show: 2021 2020 Sales 1,237,500 1,000,000 950,000 287,000 Cost of sales 800,000 Gross profit 200,000 The only known factor given is the sales price increased 12.5% beginning January 2021.
Prepare a projected statement of comprehensive income for the year ended 31 December 2021 to determine the sales needed to produce a profit after tax that is 25% more than that for the year ending 31 December 2020. (Where applicable round of amounts to the nearest rand) INFORMATION: Calder Enterprises Statement of Comprehensive Income for the year ended 31 December 2020 R Sales 5 445 000 Cost of sales (3 539 250) Gross profit Operating expenses Income from operations Interest expense 1905 750 (1 122 000) 783 750 (98 900) Profit before tax 684 850 Income tax (191 758) Profit after tax 493 092 Additional information: 1. Cost of sales is expected to be 60% of sales. 2. Operating expenses will increase by 4%. 3. Interest expense will increase to R120 000. 4. The tax rate will remain at 28% 3.2 Use the information from question 3.1 (not your solution) and calculate the following for the year ending 31 December 2020: 3.2.1 Gross margin 3.2.2 Net profit margin 3.2.3 Operating margin 3.2.4…
Chupapi Inc. has a gross profit ratio of 16.67 % for the year 2020. If Chupapi Inc. has gross profit of P 1,090,000 and P 6,000,000 net sales on year 2021, What would be the gross profit margin of Chupapi Inc, during 2021? * 36.33% 18.17 % 16.57 % O 15. 76 %
The portion of the functional income statements of BP Company for 2021 and 2020 are presented below: 2021 2020 Sales Cost of goods sold Gross margin P890,000 P800,000 530,000 450.000 360.000 350.000 Assuming that effective January of 2021 the unit cost is higher by 6 percent, calculate the change in sales due to change in volume rounded to nearest thousands.
1. Prepare a comparative statements for Sunshine Co. showing an income statement for 3 year period. 2020. 2021Sale 475,000. 505,000Less: Cost of sales. 210,000. 250,000Gross Profit on Sales. 265,000 255,000Less: Operating Expenses. 180,000. 155,000Net Income 85,000. 100,000
The sales and profit for two years are as below: Sales Profit 2019 60000 17000 2020 90000 32000 Calculate sales when profit is OMR 100000
The following data for the years ended December 31, 2019 and 2020 were presented to the management Zigzag Company: 2020 = Net sales: %3D 1,363,000, Cost of Sales: 911,800, Gross Profit: 451,200; 2019 = Net Sales: %3D 1,250,000, Cost of Sales: 776,000, Gross Profit: 474,000. The management requested you to determine the cause of the decline in gross profit on sales in spite of the favorable information given by the sales division that the quantity sold in 2020 was higher than in 2019 and that the production costs in 2020 were lower than that of 2019 by 6%. The percent change in volume is: 17.50% 14.00% 25.00% ) 20.00%
The following information was taken from the financial statements of Sunland Company: 2021 2020 Gross profit on sales $678,600 $760,000 Income before income taxes 205,400 225,000 Net income 260,000 225,000 Net income as a percentage of net sales 10% 9% Please show steps to finding answer Compute the cost of goods sold in dollars and as a percentage of net sales for each year. (Round percentages to 1 decimal place, e.g. 15.2%) 2021 2020 Cost of goods sold in dollars $enter a dollar amount $enter a dollar amount Cost of goods sold as a percentage of net sales nter percentages rounded to 1 decimal place % nter percentages rounded to 1 decimal place %
From the following information, calculate Operating ratios and operating profit ratio and net profit ratio of "E" company for two years: Particulars 2019 2020 Sales 15.00.000 20.00.000 Cost of Goods Sold 7.50.000 9.00.000 Administrative Expenses 1.00.000 1.50,000 Šales Expense 2,50.000 3.00,000 Depreciation 1.00,000 1,00,000 Financial Expenses 1.00,000 1,00.000 Income of Interest-Dividend 2.00.000 2,00.000 Other expense (Non-Operating) 50,000 50.000