Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,352,800 $1,166,200 $980,000 $837,600 $709,800 Interest expense 460,000 419,800 362,600 276,400 220,000 Income tax expense 432,896 326,536 274,400 217,776 170,352 Average total assets 9,960,440 8,811,111 7,542,697 6,439,306 5,501,775 Average stockholders' equity 3,340,247 3,013,437 2,655,827 2,372,805 2,093,805 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: Industry Ratios Return on total assets 17.9 % Return on stockholders' equity 37.3 % Times interest earned 4.6 Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: Year 5 % Year 4 % Year 3 % Year 2 % Year 1 0000

Common-Size Income StatementsConsider the following income statement data from the Ross Company:   Current Year Previous Year Sales revenue $529,000 $454,000 Cost of goods sold 336,000 279,000 Selling expenses 109,000 103,000 Administrative expenses 64,000 58,000 Income tax expense 7,800 5,400 Prepare common-size income statements for each year.  Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Note: Compute percentages for each "Total" (do not add prior percentage amounts to arrive at Totals). ROSS COMPANYCommon-Size Income Statements(Percent of Sales Revenue)   Current Year Previous Year Sales Revenue Answer Answer Cost of Goods Sold Answer Answer Answer Answer Answer Answer     Selling Expenses Answer Answer Administrative Expenses Answer Answer Total Answer Answer Income before Income Taxes Answer Answer Answer Answer Answer Answer Answer Answer PreviousSave AnswersNext

f

Vertical analysis The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions):   AT&T Verizon Revenues $132,447 $127,079 Cost of services (expense) 60,611 49,931 Selling and marketing expense 39,697 41,016 Depreciation and other expenses 20,393 16,533 Operating income $ 11,746 $ 19,599 Required: a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. AT&T Income Statement     Amount Percent Revenues     Cost of services (expense)     Selling and marketing expense     Depreciation and other expenses     Operating income     b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal place. Verizon Income Statement     Amount Percent Revenues     Cost of services (expense)     Selling and marketing expense     Depreciation and other expenses     Operating…

Ratios Analyzing Firm Profitability The following information is available for Buhler Company: Annual Data 2013 2012 Net sales $10,200,000 $9,600,000 Gross profit on sales 3,053,000 2,736,000 Net income 567,600 488,000   Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total assets $8,100,000 $7,700,000 Stockholders' equity 3,800,000 3,200,000 Calculate the following ratios for 2013: Note: Round answers to one decimal place, unless otherwise noted.a. Gross profit percentage Answer   % b. Return on sales Answer   % c. Asset turnover (Round answer to two decimal places.)Answer    d. Return on assets Answer   % e. Return on common stockholders' equity (Buhler Company has no preferred stock.) Answer   %

Trend Analysis Critelli Company has provided the following comparative information:       Year 5     Year 4     Year 3     Year 2     Year 1 Net income $940,300   $810,600   $681,200   $582,200   $493,400   Interest expense 319,700   291,800   252,000   192,100   153,000   Income tax expense 300,896   226,968   190,736   151,372   118,416   Average total assets 5,779,817   5,103,704   4,360,748   3,704,785   3,153,171   Average stockholders' equity 1,975,420   1,769,869   1,548,182   1,373,113   1,203,415     You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:     Industry Ratios Return on total assets 21.5 %   Return on stockholders’ equity 44.4 %   Times interest earned 4.6     Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a.  Return on total assets: Year 5…

Return Ratios and Leverage The following selected data are taken from the financial statements of Redwood Enterprises: Sales revenue   $641,000 Cost of goods sold   356,000 Gross profit   $285,000 Selling and administrative expense   100,000 Operating income   $185,000 Interest expense   50,000 Income before tax   $135,000 Income tax expense (40%)   54,000 Net income   $81,000 Accounts payable   $45,000 Accrued liabilities   70,000 Income taxes payable   10,000 Interest payable   25,000 Short-term loans payable   150,000 Total current liabilities   $300,000 Long-term bonds payable   $500,000 Preferred stock, 10%, $100 par   $250,000 Common stock, no par   600,000 Retained earnings   350,000 Total stockholders' equity   $1,200,000    Total liabilities and stockholders' equity   $2,000,000 Required: 1.  Compute the following ratios for Redwood Enterprises: Return on sales Asset turnover (Assume that total assets at the beginning of the year…

Enola Enterprises Income Statement Year Ended Ended June 30, 2020 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salaries Expense 42,000 Advertising Expense 12,000 Depreciation Expense-Plant Assets 28,000 Total Operating Expenses Income From Operations Other Income (Expenses) Dividend Revenue Interest Expense Total Other Income (Expenses) Net Income Before Income Taxes Income Tax Expense Net Income 10,800 -3,100 229,000 104,000 125,000 82,000 43,000 7,700 50,700 8,000 42,700 Additional data follow: a) Collections from customers are $13,000 more than sales. b) Dividend revenue, interest expense, and income tax expense equal their cash amounts. c) Payments to suppliers are the sum of cost of goods sold plus advertising expense. d) Payments to employees are $1,700 more than salaries expense. e) Cash payment for the acquisition of plant assets is $108,000.