Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Reason for Income Statement Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 750,000 $ 690,000 Cost of goods sold 560,000 288,800 Gross profit 190,000 401,200 Operating expenses 129,200 219,200 Net income 2$ 60,800 2$ 182,000 < Income Statement Reason for Decline in Net Income >

Express the following comparative income statements in common-size percents. Using the common-size percents, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Reason for Income Statement Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year $ Current Year % Prior Year $ Prior Year % Sales $ 750,000 $ 690,000 Cost of goods sold 560,000 288,800 Gross profit 190,000 401,200 Operating expenses 129,200 219,200 Net income 2$ 60,800 2$ 182,000 < Income Statement Reason for Decline in Net Income >

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 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
Albion Inc. provided the following information for its most recent year of operations. The tax rate is 40%. Required: 1. Compute the following: (a) return on sales, (b) return on assets, (c) return on stockholders equity, (d) earnings per share, (e) price-earnings ratio, (f) dividend yield, and (g) dividend payout ratio. 2. CONCEPTUAL CONNECTION If you were considering purchasing stock in Albion, which of the above ratios would be of most interest to you? Explain.
Revenue and expense data for Gresham Inc. for two recent years are as follows: a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to one decimal place. b. Comment on the significant changes disclosed by the comparative income statement.
Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for Cuneo Company above. Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 2. Prepare a common-size income statement for Year 2 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.) 3. Prepare a common-size income statement for Year 3 by expressing each line item as a percentage of sales revenue. (Note: Round percentages to the nearest tenth of a percent.)
Express the following comparative income statements in common-size percents.Using the common-size percentages, which item is most responsible for the decline in net income? Complete this question by entering your answers in the tabs below. Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ % $ % Sales $740,000 100.0 $625,000 100.0 Cost of goods sold 560,300 290,800 Gross profit 179,700 334,200 Operating expenses 128,200 218,500 Net income $51,500 $115,700 Using the common-size percentages, which item is most responsible for the decline in net income? Using the common-size percentages, which item is most…
Express the following comparative income statements in common-size percents.Using the common-size percentages, which item is most responsible for the decline in net income?Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
Express the following comparative income statements in common-size percents.Using the common-size percentages, which item is most responsible for the decline in net income? Income Statement Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ % $ % Sales $725,000 $645,000 Cost of goods sold 570,800 293,200 Gross profit 154,200 351,800 Operating expenses 128,000 251,600 Net income $26,200 $100,200 Reason for Decline in Net Income Using the common-size percentages, which item is most responsible for the decline in net income?
Refer to the information for Cuneo Company above.Required:1. Prepare a common-size income statement for Year 2 by expressing each line item for Year2 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)2. Prepare a common-size income statement for Year 3 by expressing each line item for Year3 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)
For 20Y2, Macklin Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income statement: Please see the attachment for details: Instructions1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis prepared in (1).
For 20Y2, McDade Company reported a decline in net income. At the end of the year, T. Burrows, the president, is presented with the following condensed comparative income statement: Please see the attachment for details: Instructions1. Prepare a comparative income statement with horizontal analysis for the two-year period, using 20Y1 as the base year. Round percentages to one decimal place.2. To the extent the data permit, comment on the significant relationshipsrevealed by the horizontal analysis prepared in (1).
Compute common-size percent for the following comparative income statements (round percent to one decimal). Using the common-size percent, which item is most responsible for the decline in net income? Roberts Corporation Income Statement For Years Ended December 31 Current Year Prior Year Sales $740,000 $625,000 Cost of goods sold 560,300 290,800 Gross profit 179,700 334,200 Operating expenses 128,200 218,500 Net income $ 51,500 $115,700