Question 6 HW Pro forma income statement. Given the income statement in the popup window, E, for California Cement Company for 2013 and an expected sales growth rate of7.43% for 2014, prepare a pro forma income statement for 2014.First, find the percentage of each income statement line from 2013 as a percent of salesData TableCalifornia Cement CompanyIncome Statement for 2013Sales revenue22,868,000-11,678,000$California Cement CompanyCost of goods sold$Income Statement for 2013Selling, general, and administrative expenses$-3,919,000Sales revenue22,868,000Depreciation expenses$-1,367,000Cost of goods sold2$-11,678,000EBIT$5,904,000|Selling, general, and administrative expenses$-3,919,000Interest expense$-174.000Depreciation expenses$-1,367,000Taxable incomeTaxes$5,730,000EBIT5,904,000$-2,511,147Interest expense$-174,000Net income$3,218,853Taxable income5,730,000Taxes$-2,511,147Net income$3,218,853Duin

Income Statement: It is a financial statement that provides income and expenses for the respective…

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First, find the percentage of each income statement line from 2013 as a percent of sales

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 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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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.)
The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.68 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $66,000 in cash dividends during 2016. Metroline Manufacturing's income statement for the year ended December 31, 2015, is given along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2016. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2016. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2016 income? Explain why.
Ratios Analyzing Firm Profitability The following information is available for Buhler Company: Annual Data 2013 2012 Net sales $10,200,000 $9,600,000 Gross profit on sales 3,053,000 2,736,000 Net income 567,600 488,000 Year-End Data Dec. 31, 2013 Dec. 31, 2012 Total assets $8,100,000 $7,700,000 Stockholders' equity 3,800,000 3,200,000 Calculate the following ratios for 2013: Note: Round answers to one decimal place, unless otherwise noted.a. Gross profit percentage Answer % b. Return on sales Answer % c. Asset turnover (Round answer to two decimal places.)Answer d. Return on assets Answer % e. Return on common stockholders' equity (Buhler Company has no preferred stock.) Answer %
The following information is available to you for the Wooden Company: 2011 2010 Net Income. 53,394 39,510 Net Sales 233,715 182,795 From the information provided, calculate Wooden’s profit margin ratio for each year. Be sure to show your calculations. 2011 2010 Comment on the results, assuming that the industry average for the profit margin ratio is 25% for each of the two years.
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $ 2,060,000 $3,000,000 Cost of goods sold 1,277,200 1,644,000 Selling expenses 238,960 456,000 Administrative expenses 329,600 360,000 Income tax expense 123,600 150,000 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant changes disclosed by the comparative income statement.
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $ 2,920,000 $2,150,000 Cost of goods sold 1,769,520 1,182,500 Selling expenses 332,880 322,500 Administrative expenses 449,680 279,500 Income tax expense 169,360 116,100 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant changes disclosed by the comparative income statement. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 1 Current year Current year Previous year Previous year 2 Amount Percent Amount Percent 3 Sales $2,920,000.00 $2,150,000.00 4 Cost of goods sold 1,769,520.00 1,182,500.00 5 Gross profit $1,150,480.00…
INCOME STATEMENT DATA FOR BEZOS COMPANY FOR THE YEARS ENDED DECEMBER 31, 2014 and 2013, ARE AS FOLLOWS 2014 2013 SALES 840,000 600,000 COGS 724,500 525,000 GROSS PROFIT 115,500 75,000 SELLING EXPENSES 52,500 37,500 ADMINISTRATIVE EXPENSES 41,400 30,000 TOTAL OPERATING EXPENSES 93,900 67,500 INCOME BEFORE INCOME TAX 21,600 7,500 INCOME TAX EXPENSE 10,800 2,700 NET INCOME 10,800 4,800 PREPARE A COMPARATIVE INCOME STATEMENT WITH HORIZONTAL…
Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. TannenhillCompany ElectronicsIndustryAverage Sales $4,000,000 100.0 % Cost of goods sold (2,120,000) (60.0) Gross profit $1,880,000 40.0 % Selling expenses $(1,080,000) (24.0) % Administrative expenses (640,000) (14.0) Total operating expenses $(1,720,000) (38.0) % Operating income $160,000 2.0 % Other revenue and expense: Other revenue 120,000 3.0 Other expense (80,000) (2.0) Income before income tax expense $200,000 3.0 % Income tax expense (80,000) (2.0) Net income $120,000 1.0 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the…