Concept introduction:
Financial Statement analysis is done using the components of financial statement. These components are Balance sheet, Income statement, Statement of Cash flows etc. Annual report of a company contains financial statement of that year and previous year for comparison. If the company has subsidiaries or segments, the financial statement shall be consolidated for whole business of the company.
Vertical Analysis: Vertical Analysis is used to analyses the % of items in statement for a particular period as the % of total amount. Vertical Analysis is done for particular period for different items. For example analysis of % of assets as % of Total assets for a particular year is done using the Vertical analysis.
Horizontal Analysis: Horizontal Analysis is used to analyses the trend of a particular item. Horizontal Analysis is done for particular items for different periods for example analysis of trend of sales for several years is done using the horizontal analysis.
To calculate:
The Trend % for Net Sales.
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Managerial Accounting
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- Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?arrow_forwardUse the following information for the Quick Studies below. (Algo) ($ thousands) Net sales Current Year $ 802,213 393,339 Prior Year $ 453,350 134,505 Cost of goods sold QS 13-7 (Algo) Trend percents LO P1 Determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in thousands of dollars.) Current Year: Prior Year: Numerator: Trend Percent for Net Sales: 1 1 1 Denominator: = = = Trend Percent 0% 0 %arrow_forwardColeman, Inc. provides the following data from its Income Statement for 2018: Net Sales $ 560,000.00 Cost of Goods Sold $ (160,000.00) Gross Profit $ 400,000.00 Calculate the gross profit percentage. (round your answer to two decimal places) A 71.43% B 25.00% C 100.00% D 28.57%arrow_forward
- Revenue and expense data for Soldner Inc. are as follows: 2014 2013 Sales $1,500,000 $1,450,000 Cost of goodssold 930,000 812,000 Selling expenses 210,000 261,000 Administrative expenses 255,000 232,000 Income tax expense 52,500 72,500 a. Prepare an income statement in comparative form, stating each item for both 2014 and 2013 as a percent of sales. Round to one decimal place. b. Comment on the significant changes disclosed by the comparative income statement.arrow_forwardUse the following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year as the base year. (Enter the answers in thousands of dollars.) ($ thousands) CurrentYear PriorYear Net sales $ 453,100 $ 230,000 Cost of goods sold 222,019 68,080 Trend Percent for Net Sales: Choose Numerator: / Choose Denominator: / = Trend Percent Current Year: / = % Prior Year: / = %arrow_forwardUse the following information to determine the Prior Year and Current Year trend percents for net sales using the Prior Year a base year. (Enter the answers in thousands of dollars.) Current Prior ($ thousands) Year Year $1,155,080 $431,000 565,989 Net sales Cost of goods sold 127,576 Trend Percent for Net Sales: Choose Numerator: IChoose Denominator: Trend Percent %3D Current Year: %3D Prior Year: % %Darrow_forward
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