Akerley Convention Center. had a net income of $33,000 and $138,000 for the current and prior years, respectively. Net sales were $115,000 for the current year and $152,000 the prior year. The industry reported a net profit ratio of 83.44% last year and 23.76% this year. a) Calculate Akerley's net profit ratio for the current year to two decimal places. b) Calculate Akerley's net profit ratio for the previous year to two decimal places. c) Is the change in Akerley's net profit ratio favorable or unfavorable?
Akerley Convention Center. had a net income of $33,000 and $138,000 for the current and prior years, respectively. Net sales were $115,000 for the current year and $152,000 the prior year. The industry reported a net profit ratio of 83.44% last year and 23.76% this year. a) Calculate Akerley's net profit ratio for the current year to two decimal places. b) Calculate Akerley's net profit ratio for the previous year to two decimal places. c) Is the change in Akerley's net profit ratio favorable or unfavorable?
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 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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