A condensed income statement for Corolla Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. 2. Does Corolla's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Corolla"s net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) COROLLA CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues 2$ 2,085 100 % $ 2,155 100 % Cost of Goods Sold 1,727 83 % 1,631 % Selling, General, and Administrative Expenses 243 % 310 14 % Other Operating Expenses 45 2 % 11 % Interest Expense 14 35 2 % Income before Income Tax Expense 56 3 % 168 % Income Tax Expense 5 0 % 30 1% Net Income 2$ 51 % 138 % Required 1 Required 2 >
A condensed income statement for Corolla Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. 2. Does Corolla's Cost of Goods sold for the current year, as a percentage of revenues, represent better or worse performance as compared to that for the previous year? 3. Has Corolla"s net profit margin increased, or decreased, over the two years? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) COROLLA CORPORATION Income Statement (summarized) (in millions of U.S. dollars) Current Year Previous Year Sales Revenues 2$ 2,085 100 % $ 2,155 100 % Cost of Goods Sold 1,727 83 % 1,631 % Selling, General, and Administrative Expenses 243 % 310 14 % Other Operating Expenses 45 2 % 11 % Interest Expense 14 35 2 % Income before Income Tax Expense 56 3 % 168 % Income Tax Expense 5 0 % 30 1% Net Income 2$ 51 % 138 % Required 1 Required 2 >
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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