analysis of the increase in their gross profit in2021 based on their past two-year comparative income statements which show: 2021 2020 Sales 1,237,500 1,000,000
Q: KPT Enterprises COMPARITIVE INCOME STATEMENT for years ended 31 December 2020 Revenues and gains…
A: The comparative income statement is described as that statement in which the operating results for a…
Q: The sales and profit for two years are as below: Sales Profit 2019 60000 17000 2020 90000 32000…
A: Total cost = Sales - profit 2019 = 60000 - 17000 = 43000 2020 = 90000 - 32000 = 58000
Q: Assume that sales revenue in 2022 changed to $755,00 and cost of goods changed to $512,000. Income…
A: Formula: Net income = Total Revenues - Total Expenses
Q: The management of Bataan Corporation ask you to submit an analysis of the increase in their gross…
A: PARTICULAR 2020 2021 SALES 1,000,000 1,237,500 COST OF SALES 800,000 950,000 GROSS…
Q: Income Statement For the year ended Dec. 31, 2020.and 202019 2020 2019 P 5,150,000 150,000 5,000,000…
A: The ratio analysis analyzes the financial statements including income statement and balance sheet of…
Q: From the French Instrument Corporation second-quarter report ended 2020, do a vertical analysis for…
A: A vertical analysis is one of the financial statement analysis in which one base item is chosen and…
Q: Prepare a 2020 income statement for Crane Corporation based on the following information: Cost of…
A: Introduction: An income statement is a financial statement that shows a company's income and costs.…
Q: The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income…
A: Ratio analysis is the technique used to analyze the financial health of the company. Different…
Q: Direction: Based on the information given, perform a vertical analysis for GHI Company's Income…
A: Hi student Since there are multiple questions, we will answer only the first question. If you want…
Q: Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative…
A: Answer) KORBIN COMPANY Common -Size Comparative Income Statements For the Years Ended…
Q: Prepare a vertical analysis of the income statement data for Whispering Winds Corporation for both…
A: To analyze the income statements vertically, the items are compared as the percentage of sales.
Q: debt-to-equity ratio
A: Debt-to-equity ratio = Total noncurrent liabilities/Total shareholders' equity
Q: Estimate the value of a share of common stock using the residual operating income (ROPI) model as of…
A: Information Provided: Discount rate (WACC) of 7.8% Humana 2018 2019 2020 2021 2022 Terminal…
Q: 1. Prepare a comparative statements for Sunshine Co. showing an income statement for 3 year period.…
A: solution ; The comparative income statement is the income statement that is prepared for more than…
Q: ACTUAL PROJECTED FOR THE YEAR ENDED 31 DECEMBER FOR THE YEAR ENDED 31 DECEMBER 2016 2017 2018 2019…
A: The gross profit margin formula, Gross Profit Margin = (Revenue – Cost of Goods Sold) / Revenue x…
Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a…
A: Return on sales = Net incomeNet sales×100
Q: In 2O2O Coca Cola reported net operating revenues of P18.2 billion and cost of goods sold for P0.8…
A: The gross profit rate indicates the percentage of the profit earned by the business after deducting…
Q: Fragile Express Delivery Company’s earnings before interest and taxes (EBIT) was $725 million.…
A: NOPAT or net operating profit after taxes is calculated as EBIT less taxes on EBIT
Q: Billingham Industries, Inc. Comparative Income Statement For the years ended December 31, 2021 and…
A: Vertical analysis of income statement :— It is a type of income statement in which all items of…
Q: Operating data for Joshua Corporation are presented below. 2020 2019 Sales revenue $…
A: For vertical analysis, the items of income statement are compared to sales in percentage form.
Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a…
A: Year 2020 2021 Net income 200000 225000 Net sales 5050000 7000000
Q: What amount should be recognized by Ripple as profit from sale for the year ended December 31, 2020?…
A: Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…
Q: 2020 2019 General and administrative expenses 21,600 24,000 Interest expense 1,500 1,500 Net sales…
A: Operating profit margin:- It is the ratio of Operating income divided by Net Sales. Formula: OPM%…
Q: Retail Corporation reported the following Income Statement for the past two years: Retail…
A: Solution Formulas- 1- Gross profit in percentage = Gross profit / Sales *100. 2- operating profit…
Q: Chupapi Inc. has a gross profit ratio of 16.67 % for the year 2020. If Chupapi Inc. has gross profit…
A: Gross profit margin = Gross profit / Net sales where, Gross profit = Net Sales - Cost of goods sold
Q: Halal Berhad’s comparative financial statements for the years ending 31 December 2020, and 2019, are…
A: Times interest earned ratio is one of the profitability ratio which shows how much earnings are…
Q: Consolidated income Štatement 12 Months Ended in USD millions, except per share data Dec. 31, 2020…
A: Generally accepted accounting principles excludes dirty surplus in reformulated income statement.…
Q: The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income…
A: Inventory Turnover = Cost of goods sold / Average Inventory Days in Inventory = 360 / Inventory…
Q: Barry's Burgers reported net sales of: 2019 $300,000 2020 $330,000 2021 $360,000 If 2019 is the base…
A: Sales is the revenue generated from the regular business operation of the company. The horizontal…
Q: The CEO of PDL Corporation would like to see a five-year (2023-2027) cumulative net income…
A: Income Statement is a summary of all revenues, gains and all expenses and losses incurred during…
Q: Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to…
A: While preparing an income statement, we can use ratio analysis to find out the missing figures. For…
Q: The following information related to TRT Company for the years 2019 and 20 1. Income Statement…
A: The return on investment ratio (also known as ROI) would be the most popular profitability…
Q: COMPARATIVE STATEMENTS Sikat Manufacturing Corporation Income Statement For the year ended Dec. 31,…
A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 2020 2019 (dollars in millions) $ 37,580 2,231 1,318 $33,075 1,283 Net sales Earnings before taxes…
A: Solution:- Computation of Vertical and Horizontal analysis from the above information as follows:-
Q: Calculate the quick ratio for Los Altos, Inc., for both years, using the financial statements…
A: Quick ratio = Quick assets / Current liabilities where, Quick assets = Total current assets -…
Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a…
A: 2020 Net income = P200,000 Net sales = P5,050,000 2021 Net income = P225,000 Net sales = P7,000,000
Q: Prepare a horizontal analysis of the following comparative income statement for the Buff Bodies…
A: Horizontal analysis is prepared to calculate the variance from previous year by showing…
Q: Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative…
A: Income statement: The income statement determines the net income of the business by subtracting the…
Q: What effect did the expansion have on sales and net income? What effect did the expansion have on…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Total Assets for Wendy's Pumpkins on 1 January 2020 was $650,000 and on 31 December 2020 was…
A: The ratio analysis helps to analyse the financial statements of the business on the basis of various…
Q: The comparative condensed income statements of Dubai Company are shown below. Dubai Company…
A: Income statement analysis made by the corporation for analyzing their progress and efficiency in…
Q: What is the statement of comprehensive income for the year Dec. 2020 showing the ratio of each item…
A: Horizontal analysis means where the analysis is made with regard with two different period where as…
Q: Analyze the Gross profit ratio and give you a report on the same in 2020 and|2019? Gross profit…
A: Gross profit refers to the difference between the net sales revenue and cost of goods sold. Gross…
Q: Retail Corporation reported the following Income Statement for the past two years: Retail…
A: The net income from a company's main, core business operations is known as operating profit. Since…
Q: comparative income statements of Arab Manufacturing Company are shown below. 2019 2020 $38,610…
A: Vertical analysis compares two amounts of a same period. In Vertical analysis, a figure is taken as…
Q: Prepare a horizontal analysis of the income statement data for Pina Colada Corporation using 2021 as…
A: Income Statement :— Income Statement is A part of the financial statement of the which include all…
Q: Forecast Apple’s 2021 income statement based on its 2020 financial statements. Use the 4-year…
A: Income statement shows the net income or loss earned / incurred by an organization during the year.…
Q: Meagley Company presents the following condensed income statement and balance sheet information for…
A: Vertical Analysis - Common Size Statement is also known as the vertical analysis method. The Company…
Q: Statement of Comprehensive Income For the Year-ended December 31 2019 2020 Sales P 10,040,000 P…
A: Profitability ratio includes: Gross profit margin Net profit margin Operating profit margin Return…
Q: Operating data for Cheyenne Corp. are presented below. 2022 2021 Sales revenue $831,900 $629,500…
A: Vertical analysis means the analysis of each item in the income statement form the value of sales…
What is the gross profit declined due to increase in cost in the amount?
Step by step
Solved in 2 steps
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
- Fisafolia Corporation has gross income from operations of $210,000 and operating expenses of $160,000 for 2019. The corporation also has $30,000 in dividends from publicly traded domestic corporations in which the ownership percentage was 45 percent. Calculate the corporation's dividends received deduction for 2019. $_____________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $135,000. Calculate the corporation's dividends received deduction for 2019. $___________ Assume that instead of $210,000, Fisafolia Corporation has gross income from operations of $158,000. Calculate the corporation's dividends received deduction for 2019. $_____________LONG-TERM FINANCING NEEDED At year-end 2019, total assets for Arrington Inc. were 1.8 million and accounts payable were 450,000. Sales, which in 2019 were 3.0 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to 500,000 in 2019, and retained earnings were 475,000. Arrington plans to sell new common stock in the amount of 130,000. The firms profit margin on sates is 5%; 35% of earnings will be retained. a. What were Arringtons total liabilities in 2019? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.)Roseau Company is preparing its annual earnings per share amounts to be disclosed on its 2019 income statement. It has collected the following information at the end of 2019: 1. Net income: 120,400. Included in the net income is income from continuing operations of 130,400 and a loss from discontinued operations (net of income taxes) of 10,000. Corporate income tax rate: 30%. 2. Common stock outstanding on January 1, 2019: 20,000 shares. 3. Common stock issuances during 2019: July 6, 4,000 shares; August 24, 3,000 shares. 4. Stock dividend: On October 19, 2019, the company declared a 10% stock dividend that resulted in 2,700 additional outstanding shares of common stock. 5. Common stock prices: 2019 average market price, 30 per share; 2019 ending market price, 27 per share. 6. 7% preferred stock outstanding on January 1, 2019: 1,000 shares. Terms: 100 par, nonconvertible. Current dividends have been paid. No preferred stock issued during 2019. 7. 8% convertible preferred stock outstanding on January 1, 2019: 800 shares. The stock was issued in 2018 at 130 per share. Each 100 par preferred stock is currently convertible into 1.7 shares of common stock. Current dividends have been paid. To date, no preferred stock has been converted. 8. Bonds payable outstanding on January 1, 2019: 100,000 face value. These bonds were issued several years ago at 97 and pay annual interest of 9.6%. The discount is being amortized in the amount of 300 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 9. Compensatory share options outstanding: Key executives may currently acquire 3,000 shares of common stock at 20 per share. The options were granted in 2018. To date, none have been exercised. The unrecognized compensation cost (net of tax) related to the options is 4 per share. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Show how Roseau would report these earnings per share figures on its 2019 income statement. Include an explanatory note to the financial statements.
- DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2019 income statement (shown in thousands of dollars). Prior to reporting this income statement, the company wants to determine its annual dividend. The company has 320,000 shares of common stock outstanding, and its stock trades at 37 per share. a. The company had a 25% dividend payout ratio in 2018. If Brooks wants to maintain this payout ratio in 2019, what will be its per-share dividend in 2019? b. If the company maintains this 25% payout ratio, what will be the current dividend yield on the companys stock? c. The company reported net income of 1.35 million in 2018. Assume that the number of shares outstanding has remained constant. What was the companys per-share dividend in 2018? d. As an alternative to maintaining the same dividend payout ratio. Brooks is considering maintaining the same per-share dividend in 2019 that it paid in 2018. If it chooses this policy, what will be the companys dividend payout ratio in 2019? e. Assume that the company is interested in dramatically expanding its operations and that this expansion will require significant amounts of capital. The company would like to avoid transactions costs involved in issuing new equity. Given this scenario, would it make more sense for the company to maintain a constant dividend payout ratio or to maintain the same per-share dividend? Explain.Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.