1.
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Calculate:
Common size percents of above data.
2.
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Calculate:
Gross margin ratio.
3.
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
To Comment:
Compare gross margin with industry ratio.
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
- Comparing Income Statements and Balance Sheets of CompetitorsFollowing are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch (clothing retailer in the high-end market) and TJX Companies (clothing retailer in the value-priced market). (a) Express each income statement amount as a percentage of sales. Round your answers to one decimal place (ex: 0.2345 = 23.5%). Income Statement ($ millions) ANF TJX Sales $4,680 $21,058 Cost of goods sold 1,599 Answer 16,021 Answer Gross profit 3,081 Answer 5,037 Answer Total expenses 2,435 Answer 4,003 Answer Net income $ 646 Answer $ 1,034 Answer (b) Express each balance sheet amount as a percentage of total assets. Round your answers to one decimal place (ex: 0.2345 = 23.5%). Balance Sheet ($ millions) ANF TJX Current assets $1,010 Answer $3,929 Answer Long-term assets 1,627 Answer 2,608 Answer Total assets…arrow_forwardCompute for the ratio that measures the margin of sales of Nezuko Inc. is achieving?arrow_forwardSave Mivatin Products Ltd. reported the following on its 2011 comparative income statement: (In millions) 2011 2010 2009 Net sales $148.5 $139.0 $149.5 Cost of sales 129.5 108.0 114.0 Perform a horizontal analysis of net sales, cost of sales, and gross margin, both in dollar amounts and in percentages, for 2011 and 2010. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) Mivatin Products Ltd. Income Statement - (Adapted) For the Year Ended December 31, 2011 and 2010 Increase/(Decrease) (amounts in millions) 2011 2010 2011 2010 2009 Amt. % Amt % Net sales $148.5 $139.0 $149.5 Cost of sales 129.5 108.0 114.0 Gross marginarrow_forward
- Vertical analysis (common-size) percentages for Cullumber Company’s sales revenue, cost of goods sold, and expenses are listed here. Vertical Analysis 2022 2021 2020 Sales revenue 100.0 % 100.0 % 100.0 % Cost of goods sold 60.0 64.2 65.6 Expenses 24.7 27.1 29.5 Calculate Cullumber’s net income as a percent of sales. (Round answers to 1 decimal place, e.g. 5.2.) 2022 2021 2020 Net income Enter percentages rounded to 1 decimal place. Enter percentages rounded to 1 decimal place. Enter percentages rounded to 1 decimal place. Did Cullumber’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Cullumber’s net income as a percent of sales Choose the correct answer increaseddecreasedremained unchangedarrow_forwardFor this question, calculate all values to 2 decimal places of £M (e.g. £123.45M) unless otherwise specified, and all ratios to 2 decimal places of percentage (e.g. 9.87%). You are given the following income statements and balance sheets for Freddie M Corporation for fiscal years 2045 and 2046 (all figures are in £ million), Income Statement Balance Sheet Sales Cost of goods sold Gross margin Wage & salaries expense Depreciation expense Earnings before interest and tax Interest expenses Taxes Net income Dividends Change in shareholder's equity Assets: Cash & equivalents Receivables Inventories Current Assets Property, plant & equipment Accumulated depreciation Net property, plant & equip Total Assets 2045 400.00 -200.00 200.00 -50.00 -25.00 125.00 -25.00 -60.00 40.00 -16.00 24.00 2045 2046 480.00 -240.00 240.00 -60.00 -25.00 155.00 -20.00 -70.00 65.00 -26.00 39.00 2046 Liabilities: 30.00 36.00 Payables 60.00 Short-term debt 50.00 50.00 60.00 Long-term debt 130.00 156.00 Total…arrow_forwardIn a common size financial statement, which of the following is given a percentage of 100 percent? Total liabilities Net income Net Sales Cost of goods sold MA MacBook Pro 57 W P # LEarrow_forward
- Profitability Ratios Provide brief definition of what Profitability ratios mean to the company. What are the differences between Apple and Samsung in relationship to each of the ratios? See attached for ratios Net Profit Margin Samsung vs Apple Gross Profit Margin Samsung vs Apple Return on Equity (ROE) Samsung vs Apple Net Return on Assets Samsung vs Apple 3. What does it mean to the company’s profitability? Is it good or bad?arrow_forwardSome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Llabiltles and Owners' Equlty Current assets Current liabilities $ 2,198 $ 2,690 $ 2,941 $ 2,857 Accounts payable 4,722 12,658 Cash Notes payable Other Accounts recelvable 5,691 13,692 1,795 2,206 116 Inventory 99 Total $20,321 $22,240 Total $ 4,092 $ 5,012 $ 14,200 $16,960 Long-term debt Owners' equity Common stock 42,500 and paid-in surplus $42,500 $ Accumulated retained 39,769 Flxed assets 15,699 earnings Net plant and 82,269 $56,170 $ 82,001 Total $ 58,199 $ equipment Total liabilitles and owners' 104,241 Total assets $76,491 $104,241 $ 76,491 $ equity SMOLIRA GOLF, INC. 2019 Income Statement Sales $189,170 Cost of goods sold Depreclation 127,103 5,243 $56,824 1,340 EBIT Interest pald Taxable Income $55,484 Тахes 19,419 Net Income $36,065 Dividends $ 11,995 24,070 Retalned earningsarrow_forward1. The annual net income of MAC Industries since 2005 is given below. Years t (since 2005) Net Income 1 4 6 12 15 $1,500 $2,500 $2,875 $2,850 $2,250 a. Create a scatter plot that includes your curve of best fit on top of the data. You should try several functions and make your choice based on best r-squared value. b. Find the year that Net Income was at its highest point. c. What was the income in that year?arrow_forward
- A company has an EPS of $1.65, a book value per share of $16.17, and a market/book ratio of 1.4x. What is its P/E ratio? Do not round intermediate calculations. Round your answer to two decimal places. Xarrow_forwardWhat is the comparison (analysis) of the Days Sales Outstanding of Industry Average Ratio and the Company A Ratio? The Days Sales Outstanding has decreased and increased. Why? Industry Average DSO 2015: 138 days 2016: 104 days 2017: 173 days 2018: 125 days 2019: 98 days Company A DSO 2015: 245 days 2016: 338 days 2017: 332 days 2018: 169 days 2019: 81 daysarrow_forwardK In early 2022, the following information,, was true about Abercrombie and Fitch (ANF) and The Gap (GPS), both clothing retailers. Values (except price per share) are in millions of dollars. a. What is the market-to-book ratio of each company? b. What conclusion do you draw from comparing the two ratios? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) ANF GPS Book Equity $825 $2,724 Price per Share $39.04 $18.04 Number of Shares 47.99 million 366.79 million -arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education