comparative income statements of Arab Manufacturing Company are shown below. 2019 2020 $38,610 $32,175 $25,740 25,100 19,950 S13,510 S12,225 $10,340 7,700 4,270 2018 Net sales Cost of sales 15,400 Gross profit Selling expenses Administrative 6,565 5,148 4,175 3,861 expenses Total operating S11,970 $10,740 $ 9,009 expenses Operating S 1,540 S1,485 $ 1,331 income Interest expense 95 S 1,231 115 100 Net income S 1,425 S 1,390 before tax Income taxes 655 645 $ 770 $ 745 541 $ 690 Net income Required: a. Perform a vertical, common size analysis of the income statement data for Arab Manufacturing Company in columnar form, using sales as the base. b. Comment briefly on significant trends and relationships revealed by the computations.52 PI
comparative income statements of Arab Manufacturing Company are shown below. 2019 2020 $38,610 $32,175 $25,740 25,100 19,950 S13,510 S12,225 $10,340 7,700 4,270 2018 Net sales Cost of sales 15,400 Gross profit Selling expenses Administrative 6,565 5,148 4,175 3,861 expenses Total operating S11,970 $10,740 $ 9,009 expenses Operating S 1,540 S1,485 $ 1,331 income Interest expense 95 S 1,231 115 100 Net income S 1,425 S 1,390 before tax Income taxes 655 645 $ 770 $ 745 541 $ 690 Net income Required: a. Perform a vertical, common size analysis of the income statement data for Arab Manufacturing Company in columnar form, using sales as the base. b. Comment briefly on significant trends and relationships revealed by the computations.52 PI
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.2.2P
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