VERDescribe the trend of revenues from 2007 to 2010. What observations can be drawn?Describe the trend of operating income from 2007 to 2010. What observations can be drawn?Describe the trend of net income from 2007 to 2010. What observations can be drawn? GMA NETWORK INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEcurrency in philippine pesos, in millions2010200920082007Revenues100.0%100.0%100.0%100.0%Cost of Goods Sold40.7%39.3%40.3%40.3%GROSS PROFIT (Gross Income/Net Revenues)59.3%60.7%59.7%59.7%Selling General & Admin Expenses, Total24.7%23.5%22.5%22.5%Depreciation & Amortization, Total2.6%3.2%3.6%3.3%Other Operating Expenses1.4%1.5%1.4%1.3%OTHER OPERATING EXPENSES, TOTAL28.7%28.2%27.5%27.1%INCOME FROM OPERATIONS (Operating Income)30.5%32.5%32.2%32.5%Interest Expense0.0%-0.1%-0.1%-0.2%Interest and Investment Income0.6%0.5%0.7%0.7%Income (Loss) on Equity Investments0.1%-0.1%-0.1%0.0%Currency Exchange Gains (Loss)-0.2%-0.1%0.0%-0.2%Other Non-Operating Income (Expenses)0.2%0.2%0.4%0.9%Gain (Loss) on Sale of Assets0.1%0.1%0.3%0.0%Other Unusual Items, Total0.0%0.0%0.0%0.2%NET INCOME BEFORE TAX31.2%33.1%33.4%33.9%Income Tax Expense8.0%8.8%10.9%11.2%NET INCOME23.2%24.3%22.5%22.6%

The Statement of Comprehensive Income - The statement of comprehensive income is the profit earned…

GMA NETWORK INC. CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME currency in philippine pesos, in millions 2010 2009 2008 2007 Revenues 100.0% 100.0% 100.0% 100.0% Cost of Goods Sold 40.7% 39.3% 40.3% 40.3% GROSS PROFIT (Gross Income/Net Revenues) 59.3% 60.7% 59.7% 59.7% Selling General & Admin Expenses, Total Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL 24.7% 23.5% 22.5% 22.5% 2.6% 3.2% 3.6% 3.3% 1.4% 1.5% 1.4% 1.3% 28.7% 28.2% 27.5% 27.1% INCOME FROM OPERATIONS (Operating Income) 30.5% 32.5% 32.2% 32.5% Interest Expense 0.0% -0.1% -0.1% -0.2% 0.7% -0.1% Interest and Investment Income 0.6% 0.5% 0.7% Income (Loss) on Equity Investments 0.1% -0.1% 0.0% Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) -0.2% -0.1% 0.0% -0.2% 0.2% 0.2% 0.4% 0.9% Gain (Loss) on Sale of Assets 0.1% 0.1% 0.3% 0.0% Other Unusual Items, Total NET INCOME BEFORE TAX 0.0% 0.0% 0.0% 0.2% 31.2% 33.1% 33.4% 33.9% Income Tax Expense 8.0% 8.8% 10.9% 11.2% NET INCOME 23.2% 24.3% 22.5% 22.6%

GMA NETWORK INC. CONSOLIDATED STATEMENTS OF COMPREHEN SIVE INCOME currency in philippine pesos, in millions 2010 2009 2008 2007 Revenues 100.0% 100.0% 100.0% 100.0% Cost of Goods Sold 40.7% 39.3% 40.3% 40.3% GROSS PROFIT (Gross Income/Net Revenues) 59.3% 60.7% 59.7% 59.7% Selling General & Admin Expenses, Total Depreciation & Amortization, Total Other Operating Expenses OTHER OPERATING EXPENSES, TOTAL 24.7% 23.5% 22.5% 22.5% 2.6% 3.2% 3.6% 3.3% 1.4% 1.5% 1.4% 1.3% 28.7% 28.2% 27.5% 27.1% INCOME FROM OPERATIONS (Operating Income) 30.5% 32.5% 32.2% 32.5% Interest Expense 0.0% -0.1% -0.1% -0.2% 0.7% -0.1% Interest and Investment Income 0.6% 0.5% 0.7% Income (Loss) on Equity Investments 0.1% -0.1% 0.0% Currency Exchange Gains (Loss) Other Non-Operating Income (Expenses) -0.2% -0.1% 0.0% -0.2% 0.2% 0.2% 0.4% 0.9% Gain (Loss) on Sale of Assets 0.1% 0.1% 0.3% 0.0% Other Unusual Items, Total NET INCOME BEFORE TAX 0.0% 0.0% 0.0% 0.2% 31.2% 33.1% 33.4% 33.9% Income Tax Expense 8.0% 8.8% 10.9% 11.2% NET INCOME 23.2% 24.3% 22.5% 22.6%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,850,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,450,000.00 4 Gross profit $4,850,000.00 $4,550,000.00 5 Selling expenses $2,170,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,797,500.00 $3,500,000.00 8 Income from operations $1,052,500.00 $1,050,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets…
Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,850,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,450,000.00 4 Gross profit $4,850,000.00 $4,550,000.00 5 Selling expenses $2,170,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,797,500.00 $3,500,000.00 8 Income from operations $1,052,500.00 $1,050,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets…
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Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,850,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,450,000.00 4 Gross profit $4,850,000.00 $4,550,000.00 5 Selling expenses $2,170,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,797,500.00 $3,500,000.00 8 Income from operations $1,052,500.00 $1,050,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets…
Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Sales $10,850,000.00 $10,000,000.00 3 Cost of goods sold 6,000,000.00 5,450,000.00 4 Gross profit $4,850,000.00 $4,550,000.00 5 Selling expenses $2,170,000.00 $2,000,000.00 6 Administrative expenses 1,627,500.00 1,500,000.00 7 Total operating expenses $3,797,500.00 $3,500,000.00 8 Income from operations $1,052,500.00 $1,050,000.00 9 Other revenue 99,500.00 20,000.00 10 $1,152,000.00 $1,070,000.00 11 Other expense (interest) 132,000.00 120,000.00 12 Income before income tax $1,020,000.00 $950,000.00 13 Income tax expense 420,000.00 400,000.00 14 Net income $600,000.00 $550,000.00 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 1 20Y2 20Y1 2 Assets…
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Selected comparative statement data for Oriole Company are presented below. All balance sheet data are as of December 31. 20222021Net sales$1,165,000 $1,125,000Cost of goods sold705,000 645,000Interest expense20,000 15,000Net income154,945 145,000Accounts receivable145,000 125,000Inventory105,000 100,000Total assets785,000 700,000Preferred stock (6%)205,000 200,000Total stockholders’ equity635,000 525,000 Compute the following ratios for 2022. (Round answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)Profit marginenter the profit margin in percentages %(b)Asset turnoverenter the asset turnover in times times(c)Return on assetsenter the return on assets in percentages %(d)Return on common stockholders’ equityenter the return on common stockholders' equity in percentages %
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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information:     20Y8     20Y7     20Y6     20Y5     20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:   20Y4–20Y8 Return on total assets 28%…
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information:     20Y8     20Y7     20Y6     20Y5     20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:   20Y4–20Y8 Return on total assets 28%…
what does the percentages mean in vertical analysis? Year 4 % of Sales Year 3 % of Sales Assets Current Assets Cash $          40,000 6.67 $          36,000 6.67 Marketable Securities 20000 3.33 6000 1.11 Accounts Receivable 54000 9.00 46000 8.52 Inventories 135000 22.50 143000 26.48 Prepaid Items 25000 4.17 10000 1.85 Total Assets current 274000 45.67 241000 44.63 Investments 27000 4.50 20000 3.70 plant net 270000 45.00 255000 47.22 Land 29000 4.83 24000 4.44 Total Assets $        600,000 100.00 $        540,000 100.00 Liabilities and Stock equity Liabilities Current Liabilities Notes payable $          17,000 2.83 $            6,000 1.11 Accounts payable 113800 18.97 100000 18.52 salaries payable 21000 3.50 15000 2.78 Total current liabilities 151800 25.30 121000 22.41 Noncurrent liabilities…