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Below are amounts found in the income statements of three companies. Operating Expenses $5,900 Cost of Goods Nonoperating Expenses $2,900 7,900 Income Tax Company Henry Net Sales Sold Expense $2,900 $50,000 53,000 $15,еее 39,220 38,280 Grace 14,100 James 58,000 3,900 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Before Net Income / Gross Profit Income Income Taxes Loss 35,000 s 5,900 $ 23,300 (8,220) Henry 26,200 $ Grace 13,780 14,100 (8,220) James 19,720 3,900 15,820 11,920 Req 1 Req 2a >

Below are amounts found in the income statements of three companies. Operating Expenses $5,900 Cost of Goods Nonoperating Expenses $2,900 7,900 Income Tax Company Henry Net Sales Sold Expense $2,900 $50,000 53,000 $15,еее 39,220 38,280 Grace 14,100 James 58,000 3,900 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Before Net Income / Gross Profit Income Income Taxes Loss 35,000 s 5,900 $ 23,300 (8,220) Henry 26,200 $ Grace 13,780 14,100 (8,220) James 19,720 3,900 15,820 11,920 Req 1 Req 2a >

Managerial Accounting: The Cornerstone of Business Decision-Making
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 22BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...
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Below are amounts found in the income statements of three companies. Operating Expenses $5,900 14,100 3,900 Cost of Goods Nonoperating Expenses $2,900 7,900 Income Tax Net Sales Sold Company Henry Expense $2,900 $50,000 $15,000 Grace 53,000 39,220 James 58,000 38,280 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Income Before Net Income / Gross Profit Income Taxes Loss Henry $ 35,000 $ 5,900 $ 26,200 $ 23,300 Grace 13,780 14,100 (8,220) (8,220) James 19,720 3,900 15,820 11,920 < Req 1 Req 2a >
Transcribed Image Text:Below are amounts found in the income statements of three companies. Operating Expenses $5,900 14,100 3,900 Cost of Goods Nonoperating Expenses $2,900 7,900 Income Tax Net Sales Sold Company Henry Expense $2,900 $50,000 $15,000 Grace 53,000 39,220 James 58,000 38,280 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. (Negative amounts should be indicated by a minus sign.) Operating Income Income Before Net Income / Gross Profit Income Taxes Loss Henry $ 35,000 $ 5,900 $ 26,200 $ 23,300 Grace 13,780 14,100 (8,220) (8,220) James 19,720 3,900 15,820 11,920 < Req 1 Req 2a >
Below are amounts found in the income statements of three companies. Cost of Goods Operating Expenses $5,900 14,100 3,900 Nonoperating Expenses $2,900 7,900 Income Tax Company Henry Net Sales Sold Expense $2,900 $50,000 $15,000 Grace 53,000 58,000 39,220 38,280 James 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate the gross profit ratio. Gross Profit Ratio Accounts in Ratio Amounts Net sales Henry %3D Cost of goods sold Net sales Grace Cost of goods sold Net sales James Cost of goods sold Rea 1 Rea 2b
Transcribed Image Text:Below are amounts found in the income statements of three companies. Cost of Goods Operating Expenses $5,900 14,100 3,900 Nonoperating Expenses $2,900 7,900 Income Tax Company Henry Net Sales Sold Expense $2,900 $50,000 $15,000 Grace 53,000 58,000 39,220 38,280 James 3,900 Required: 1. For each company, calculate (a) gross profit, (b) operating income, (c) income before income taxes, and (d) net income. 2-a. For each company, calculate the gross profit ratio. 2-b. Which company has the most favorable ratio? Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each company, calculate the gross profit ratio. Gross Profit Ratio Accounts in Ratio Amounts Net sales Henry %3D Cost of goods sold Net sales Grace Cost of goods sold Net sales James Cost of goods sold Rea 1 Rea 2b
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