Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 14, Problem 14.4E
The comparative condensed income statements of Emley Corporation are shown below.
EMLEY CORPORATION
Comparative Condensed Income Statements
For the Years Ended December 31
| 2017 | 2016 | |
| Net sales | $660,000 | $600,000 |
| Cost of goods sold | 483,000 | 420,000 |
| Gross profit | 177,000 | 180,000 |
| Operating expenses | 125,000 | 120,000 |
| Net income | $ 52,000 | $ 60,000 |
Instructions
(a) Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.
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The comparative condensed income statements of Emley Corporation are shown below.
EMLEY CORPORATIONComparative Condensed Income StatementsFor the Years Ended December 31
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2017
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2016
Net sales
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$726,000
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$661,000
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Cost of goods sold
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531,300
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462,000
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Gross profit
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194,700
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199,000
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Operating expenses
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137,500
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132,000
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Net income
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$Â 57,200
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$Â 67,000
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(a)Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
EMLEY CORPORATIONCondensed Income Statements
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Increase or (Decrease)During 2017
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2017
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2016
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Amount
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Here are the comparative condensed income statements of Concord Corporation.
Concord Corporation
Condensed Income Statements
For the Years Ended December 31
Net sales
Cost of goods sold
Gross profit
Operating expenses
Net income
(a)
2022
Net sales
$636,000
502,440
133,560
89,040
$44,520
2022
2021
$524,000
Cost of goods sold 502,440
435,444
Prepare a horizontal analysis of the income statement data for Concord Corporation, using 2021 as a base. (Show the amounts of
increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or
parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
88,556
49,780
$38,776
2021
CONCORD CORPORATION
Condensed Income Statements
$636,000 $524,000
435,444
$
Increase or (Decrease)
During 2022
Amount
Percentage
%
%
Here are the comparative condensed income statements of Pina Colada Corporation.
PINA COLADA CORPORATION
Condensed Income Statements
For the Years Ended December 31
2022
2021
Net sales
$648,000
$540,000
Cost of goods sold
517,104
465,480
Gross profit
130,896
74,520
Operating expenses
85,536
48,060
Net income
$ 45,360
$ 26,460
(a)
Prepare a horizontal analysis of the income statement data for Pina Colada Corporation, using 2021 as a base. (If
amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or
(55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
PINA COLADA CORPORATION
Condensed Income Statements
+
Increase or (Decrease) During 2022
2022
Amount
Net sales
$648,000
Cost of goods
sold
517,104
Gross profit
130,896
Operating
expenses
85,536
Net income
$ 45,360
2021
$540,000
465,480
74,520
48,060
$ 26,460
$
$
Percentage
%
%
%
%
%
Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 14 - (a) Jose Ramirez believes that the analysis of...Ch. 14 - (a) Distinguish among the following bases of...Ch. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - What do the following classes of ratios measure?...Ch. 14 - What is the difference between the current ratio...Ch. 14 - Hizar Company, a retail store, has an accounts...
Ch. 14 - Which ratios should be used to help answer the...Ch. 14 - The price-earnings ratio of General Motors...Ch. 14 - What is the formula for computing the payout...Ch. 14 - Holding all other factors constant, indicate...Ch. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - Prob. 18QCh. 14 - Prob. 19QCh. 14 - Why is it important to report discontinued...Ch. 14 - You are considering investing in Wingert...Ch. 14 - Prob. 22QCh. 14 - Prob. 23QCh. 14 - You recently received a letter from your Uncle...Ch. 14 - Prob. 14.2BECh. 14 - Using the following data from the comparative...Ch. 14 - Using the same data presented above in BE14-3 for...Ch. 14 - Net income was 500,000 in 2016, 450,000 in 2017,...Ch. 14 - Prob. 14.6BECh. 14 - Prob. 14.7BECh. 14 - Prob. 14.8BECh. 14 - Prob. 14.9BECh. 14 - Prob. 14.10BECh. 14 - The following data are taken from the financial...Ch. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - On June 30. Holloway Corporation discontinued its...Ch. 14 - Prob. 14.1DICh. 14 - Prob. 14.2DICh. 14 - In its proposed 2017 income statement. Hrabik...Ch. 14 - Financial information for Kurzen Inc. is presented...Ch. 14 - Operating data for Navarro Corporation are...Ch. 14 - The comparative condensed balance sheets of Gurley...Ch. 14 - The comparative condensed income statements of...Ch. 14 - Suppose Nordstrom, Inc., which operates department...Ch. 14 - Keener Incorporated had the following transactions...Ch. 14 - Frizell Company has the following comparative...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Wiemers Corporations comparative balance sheets...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Comparative statement data for Farris Company and...Ch. 14 - The comparative statements of Painter Tool Company...Ch. 14 - Prob. 14.3APCh. 14 - Financial information for Messersmith Company is...Ch. 14 - Prob. 14.5APCh. 14 - Prob. 14.6APCh. 14 - Prob. 14.7APCh. 14 - Prob. 14.8APCh. 14 - Prob. 14.9APCh. 14 - Financial Reporting Problem: Apple Inc. Your...Ch. 14 - PepsiCos financial statements are presented at...Ch. 14 - Prob. 14.3BYPCh. 14 - As the CPA for Gandara Manufacturing Inc., you...Ch. 14 - The Management Discussion and Analysis section of...Ch. 14 - Prob. 14.6BYPCh. 14 - Dave Schonhardt, president of Schonhardt...
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