Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem 15.34BP
Computing trend analysis and return on common equity
Net sales revenue, net income, and common
Requirements
- 1. Compute trend analyses for each item for 2015-2017. Use 2014 as the base year, and round to the nearest whole percent.
- 2. Compute the
rate of return on common stockholders' equity for 2015- 2017, rounding to three decimal places.
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Computing trend analysis and return on common equity
Net sales revenue, net income, and common stockholders’ equity for Azbel Mission Corporation, a manufacturer of contact lenses, follow for a four-year period.
Requirements
Compute trend analyses for each item for 2017-2019. Use 2016 as the base year, and round to the nearest whole percent.
Compute the rate of return on common stockholders’ equity for 2017-2019, rounding to three decimal places.
Net sales revenue, net income, and common stockholders' equity for Eyesight Mission Corporation, a manufacturer of contact lenses, follow for a four-year period.
E (Click the icon to view the net sales revenue, net income, and common equity)
Read the requirements.
Requirement 1. Compute trend analyses for each item for 2017-2019. Use 2016 as the base year, and round to the nearest whole percent.
Begin by computing Eyesight Mission Corporation's trend analysis for net sales revenue, then compute Eyesignt Mission Corporation's trend analysis for net income and finally compute Eyesight Mission Corporation's trend analysis for com
2019
2018
2017
2016
Net Sales Revenue
766,000
708,000
644.000
664,000
Trend Percentages
115 %
107 %
97 %
100 %
Net Income
60,000
$4
38,000 $
36.000
2.
44.000
Trend Percentages
136 %
86 %
82 %
100 %
Ending Common Stockholdors' Equity
368,000
352 000 $
326,000 $ 296,000
Trend Percentages
124 %
119 %
110
100 %
% OTI
Requirement 2. Compute the rate of return on…
Computing trend analysis and return on common equity
Net sales revenue, net income, and common stockholders’ equity for Eyesight Mission Corporation, a manufacturer of contact lenses, follow for a four-year period.
Requirements
Compute trend analyses for each item for 2017-2019. Use 2016 as the base year, and round to the nearest whole percent.
Compute the rate of return on common stockholders’ equity for 2017-2019, rounding to three decimal places.
Chapter 15 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 15 - What part of the Libertys annual report is written...Ch. 15 - Horizontal analysis of Liberty's balance sheet for...Ch. 15 - Vertical analysis of Liberty's balance sheet for...Ch. 15 - Which statement best describes Liberty's acid-test...Ch. 15 - Liberty's inventory turnover during 2017 was...Ch. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Liberty's rate of return on common stockholders'...Ch. 15 - The company has 2,500 shares of common stock...Ch. 15 - Prob. 10AQC
Ch. 15 - What ate the three main ways to analyze financial...Ch. 15 - What is an annual report? Briefly describe the key...Ch. 15 - Prob. 3RQCh. 15 - What is trend analysis, and how does it differ...Ch. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 9RQCh. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Briefly describe the ratios that can be used to...Ch. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. 15RQCh. 15 - Prob. 15.1SECh. 15 - Performing horizontal analysis McDonald Corp....Ch. 15 - Calculating trend analysis Variline Corp. reported...Ch. 15 - Performing vertical analysis Hoosier Optical...Ch. 15 - Preparing common-size income statement Data for...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Shine's Companies, a home improvement store chain,...Ch. 15 - Prob. 15.9SECh. 15 - Prob. 15.10SECh. 15 - Prob. 15.11SECh. 15 - Using ratios to reconstruct a balance sheet...Ch. 15 - Prob. 15.13SECh. 15 - Prob. 15.14SECh. 15 - Prob. 15.15ECh. 15 - Computing trend analysis Grand Oaks Realty's net...Ch. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Analyzing the ability to pay liabilities Big Bend...Ch. 15 - Analyzing profitability Varsity, Inc.s comparative...Ch. 15 - Prob. 15.23ECh. 15 - Using ratios to reconstruct a balance sheet The...Ch. 15 - Prob. 15.25ECh. 15 - Computing earnings per share Falconi Academy...Ch. 15 - Prob. 15.27APCh. 15 - Prob. 15.28APCh. 15 - Prob. 15.29APCh. 15 - Prob. 15.30APCh. 15 - Using ratios to evaluate a stock investment...Ch. 15 - Prob. 15.32APCh. 15 - Preparing an income statement The following...Ch. 15 - Computing trend analysis and return on common...Ch. 15 - Prob. 15.35BPCh. 15 - Prob. 15.36BPCh. 15 - Determining the effects of business transactions...Ch. 15 - Prob. 15.38BPCh. 15 - Prob. 15.39BPCh. 15 - Prob. 15.40BPCh. 15 - Prob. 15.41CPCh. 15 - Lance Berkman is the controller of Saturn, a dance...Ch. 15 - Prob. 15.1CTEI
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- Net sales revenue, net income, and common stockholders' equity for Eyesight Mission Corporation, a manufacturer of contact lenses, follow for a four-year period. E (Click the icon to view the net sales revenue, net income, and common equity) Read the requirements. Requirement 1. Compute trend analyses for each item for 2017 2019 Use 2016 as the base year, and round to the nearest whole percent. Begin by computing Eyesight Mission Corporation's trend analysis for net sales revenue, then compute Eyesight Mission Corporation's trend analysis for net income and finally compute Eyesight Mission Corporation's trend analysis for common stockholders' equity 2019 2018 2017 2016 Net Sales Revenue $4 766,000 $4 708 000 644 000 664,000 Trend Percentages 100 % Requirements 2019 2018 2017 2016 766,000 $ 708,000 $ 644,000 $ 664,000 44,000 Net Sales Revenue $4 Net Income 60,000 38,000 36,000 Ending Common Stockholders' Equity 368,000 352,000 326,000 296,000arrow_forward- Your answer is partially correct. Make a 5-year trend analysis, using 2016 as the base year, of (1) net sales and (2) net income. Comment on the significance of the trend results. (To satisfy this requirement you must access information regarding performance in prior years. This information is provided in the complete annual report available on the company's website.) (Round percentages to 0 decimal places, eg. 15% and enter amounts in millions) (1) Net sales Trend (2) Net income Trend $ $ eTextbook and Media 2020 274515 27 57411 26 % % $ $ 2019 APPLE INC. Trend Analysis of Net Sales and Net Income For the Five Years Ended 2020 2018 260174 21 55256 21 % % $ $ PRAL 265595 23 59531 30 % % $ $ 2017 229234 6 48351 6 % % $ $ 2016 215639 0 45687 0 % % Assistance Usedarrow_forward不 Net sales, net income, and total assets for Alex Shipping, Inc., for a five-year period follow: (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate trend percentages for each item for 2018 through 2021. Use 2017 as the base year and round to the nearest percent. Alex Shipping, Inc. - Trend Percentages Net sales Net income Total assets 2021 2020 2019 2018 2017 199 % 161 % 115% 99% 100% 100 % 146 % 100% 123% 34 % 94% 100% 124 % 108 % 100% Requirement 2. Calculate the rate of return on net sales for 2019 through 2021, rounding to the nearest one-tenth percent. Explain what this means. Begin by selecting the rate of return on net sales (return on sales) formula and enter the amounts to calculate the percentages. (Enter amounts in thousands as provided to you in the problem statement. Complete all input fields. Enter "O" for any zero amounts and enter the return on sales amounts as percentages rounded to one-tenth percent, XX%.) ) 2019 2020 2021 ( ( Net…arrow_forward
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