Using vertical analysis, assess the financial performance of Company A and Company B with comparison.
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- A company reported the following: Cost of Goods Sold General, Selling, and Administrative Expenses Income Tax Expense Inventory Net Income Sales Revenue Sales Discounts Sales Returns & Allowances What is the amount of gross profit? Multiple Choice $108,360 $98,950 $121,000 $203, 200 53,120 3,920 16,500 26,080 292,000 3,040 2,640How would you calculate the average rate using the AVERAGEIF formula based on the given information and data below 1 Support 2 Accounting 3 Marketing 4 Sales 5 Engineering 6 Research and Development 7 Business Development 8 Product Management $7,669,000.00 $7,221,000.00 $6,458,000.00 $6,433,000.00 $6,301,000.00 $6,299,000.00 $6,159,000.00 $6,008,000.00Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, and| Problem 2 VERTICAL ANALYSIS. The Lyons Corporation reported the following income stateme data: 20X2 20X1 Net sales $400.000 $250.000 Cost of goods sold $280.000 S160.000 Operating expenses S75.000 $56.000 Requirement: Prepare a comparative income statement for 20X2 and 20X1 using vertical analysis, ana evaluate the results.
- a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 100.0 % 100.0% Cost of goods sold (2,062,500) 550.0 % (61.0)% Gross profit $1,687,500 45.0 % 39.0% Selling expenses $(1,125,000) 0.3 % (23.0)% Administrative expenses (262,500) 0.7 % (10.0)% Total operating expenses $(1,387,500) 37.0 % (33.0)% Operating income $300,000 8.0 % 6.0% Other revenue and expense: Other revenue 15,000 0.4 % 3.0% Other expense (3,750) 0.1 % (1.0)% Income before income tax $311,250 8.3 % 8.0% Income tax expense (93,750) 25 % (2.5)% Net income $217,500 5.8 % 5.5%Stuart Company operates three segments. Income statements for the segments imply that profitability could be improved if Segment A were eliminated. Segment Sales Cost of goods sold Sales commissions Contribution margin. General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Complete this question by entering your answers in the tabs below. Required A Required B STUART COMPANY Income Statements for Year 2 Prepare a schedule of relevant sales and costs for Segment A. Relevant Rev. and Cost items for Segment A Sales Cost of goods sold Sales commissions Advertising expense Effect on income Required a. Prepare a schedule of relevant sales and costs for Segment A. b. Prepare comparative income statements for the company as a whole under two alternatives: (1) the retention of Segment A and (2) the elimination of Segment A. $ $ 163,000 (128,000) (17,000) 0 B $242,000 $256,000 (78,000) (28,000) (86,000)…Performing vertical analysis The Randall Department Stores, Inc. chief executive officer (CEO) has asked you to compare the company’s profit performance and financial position with the averages for the industry. The CEO has given you the company’s income statement and sheet as well as the industry average data for retailers. Requirements Prepare a vertical analysis for Randall for both its income statement and balance sheet. 2 Compare the company’s profit performance and financial position with the average for the industry.
- Find the Cost of goods sold,gross profit on sales, operating expenses and income taxes, net income current year trend percentage only Trend percentages: Sales (net) Solved Case 2 A partial list of trend and common-size percentages for ABC Ltd. is given below. March, current year Cost of goods sold Gross profit on sales Operating expenses and income taxes Net income Common-size percentages: Sales (net) Cost of goods sold Gross profit on sales Operating expenses and income taxes 3 Net income C 120 ? ? ? ? 100 ? 40 20 20 March, previous year 100 100 100 100 100 100 ? ? 25 10Consider the following income statement data for Wildhorse Inc.: Sales revenue Less: Cost of goods sold Gross profit Less: Selling and administration costs Net Income 2024 $99300 47500 51800 23100 $28700 What was the 2024 profit margin closest to? 2023 $86900 56400 30500 18900 $11600es A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement Sales Cost of goods sold. Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income Interest expense Net income before taxes Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total selling and administrative expenses Net operating income This Year $ 7,390,000 4,630,000 2,760,000 Members of the company's board of directors are surprised to see that net income increased by only $232,600 when sales increased by $1,773,600. Interest expense Net income before taxes Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) This Year % % 0.0% Last Year $ 5,616,400 3,512,000 2,104,400 % % 0.0 % 0.0 % % 0.0%…
- Specialty Department Stores chief executive officer (CEO) has asked you to compare the company's profit performance and financial position with the average for the industry. The CEO has given you the company's income statement and balance sheet, as well as the industry average data for retailers. Assets \table[[Current assets, %,.71.1%7. From the following information, interpret the result of operations of a manufacturing concern, using Trend Ratios. Particulars Sales (Net) Less: Cost of goods sold Gross Profit Less: Operating expenses Net Operating Profit Less: Taxes Profit after tax 2018 100 60 40 10 30 15 15 2019 90 60 30 10 20 10 10 Amount (Rs. In Lakhs) 2020 2021 120 70 50 15 35 17.5 17.5 150 80 70 20 50 25 25The following are the income statements for Ace and Diamond Companies. Diamond $ 76,000 49,000 45,600 21,000 30,400 9,500 12,500 $ 11,500 $ 17,900 What are the net income percentages for Ace and Diamond, respectively? Revenue Cost of goods sold Gross margin Operating expenses Net income Multiple Choice 6.09% and 4.25% 16.4% and 23.6% 1.83% and 1.70% 30% and 40% Ace $ 70,000
