Kleino Inc reported the following segment breakdown. Using Vertical Analysis, which segment diminished as a percentage of the overall business in the most recent year? Segment Recent Year Prior Year (in millions) (in millions) Small Business $2,994 $2,539 Consumer 2464 2201 Strategic Partner 508 440 Total Revenues $5,966 $5, 180 Group of answer choices a)None of the above. b) Consumer c)Small Business D)All of the above e) Strategic Partner
Q: The MER-37997 merchandising company reported the following information for last year: Sales Selling…
A: Contribution means the difference between the selling price and variable cost. Break even point…
Q: Following IFRS, which statement is false? Group of answer choices If the revaluation initially…
A: The objective of this question is to identify the false statement among the given options related to…
Q: Choose the correct option. If you prepare a bank reconciliation based on the following information,…
A: BANK RECONCILIATION STATEMENTA bank reconciliation statement is a financial document that reconciles…
Q: Required information [The following information applies to the questions displayed below.] Trey has…
A: Refundable portions of the Child Tax Credit give low-income families vital financial support, which…
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…
A: Cash budget is prepared to identify the total cash receipts and disbursements expected in the…
Q: TB Problem Qu. 4-217 (Algo) Recording purchases, allowances, and discounts taken Prepare journal…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: A company produces pool pumps. Overhead costs have been identified as follows: Activity Pool Cost…
A: The activity rate is calculated as the estimated overhead costs divided by the estimated base…
Q: Common stock is the only class of stock outstanding in Manley Corporation. Total stockholders'…
A: Lets understand the basics.Book value per share is a total shareholder equity divided by number of…
Q: S Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and…
A: Gross profit is the amount of money earned by the entity after deducting the cost of goods sold from…
Q: In 2009, Cilla Company acquired production machinery at a cost of $420,000, which now has…
A: The objective of the question is to calculate the amount that Cilla should recognize as a loss on…
Q: On January 1, 2023, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing.…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary are…
Q: Effect of Transactions on Current Position Analysis Data pertaining to the current position of…
A: Working capital is the ratio which is determined by deducting the total current liabilities from the…
Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a…
A: Instead of recording expenses for each individual item, organizations that use process costing…
Q: When a business suffers a net loss, the journal entry to close the income summary account would be…
A: The objective of the question is to determine the correct journal entry to close the income summary…
Q: Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The…
A: Lets understand the basics.Income statement can be prepared using,(1) Variable or marginal costing…
Q: Mary Ellis owns a small manufacturing company and would like to develop more accurate estimates for…
A: Regression analysis is a statistical method used to analyze the relationship between two or more…
Q: Weston's uses straight-line depreciation to zero over a project's life. A new project has a fixed…
A: The accounting rate of return (ARR) formula is helpful in determining the annual percentage rate of…
Q: Mil-91037 Company's contribution format income statement for the most recent month is shown below:…
A: To calculate the revised net operating income, we need to consider the changes in selling price,…
Q: Part CJohn Peter is aware that there is no Capital Gains tax in Jamaica. He decided to buy a large…
A: The objective of the question is to determine how the gains from the sale of subdivided land would…
Q: 31 5:31 2020-Target-Annual-... TARGET CORPORATION 2020 Form 10-K FINANCIAL STATEMENTS REPORTS . 5G…
A: Part 1: Answer:The provided text appears to be an excerpt from a report or financial statement,…
Q: ompany percent first mortgage bonds ure in terest semiannually on January 1 and July 1. Prime…
A: Corporate Bonds -Corporate bonds are obligations that corporations issue to both public and private…
Q: Sheridan Company manufactures two products, Mini A and Maxi B. Sheridan's overhead costs consist of…
A: Calculating Overhead Applied to Mini A using Activity-Based Costing (ABC)We can find the overhead…
Q: Suppose that Ralph Lauren Company r Date Explanation Uni June 1 Inventory 500 12 Purchase 800 23…
A: Inventory can be valued using various methods -First-in First-Out Method - Under the First-in…
Q: Spartan Corp. applies manufacturing overhead based on direct labor hours. For 2023, Spartan Corp.…
A: Predetermined Overhead Rate:— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Cost of goods sold Freight-out Insurance expense Salaries and wages expense $221,840 6,000 11,000…
A: The income statement is one of the important financial statements of the business. It records the…
Q: Give me correct answer with explanation.j
A: The objective of the question is to calculate the amount of fixed manufacturing overhead cost…
Q: Windsor Company has the following data at December 31, 2020 for its debt securities: Securities Cost…
A: Fair value of the securities means actual replacement value of the securities in the market.…
Q: Microsoft Corporation reported the following information in its financial statements for three…
A: The account receivables turnover ratio is calculated as net sales divided by average account…
Q: Caldwell Supply, a wholesaler, has determined that its operations have three primary activities:…
A: Target cost is the cost the company can incur for the respective expenses to earn the target…
Q: For each of the independent events listed below, analyze the impact on the indicated items at the…
A: To analyze the impact on assets at the end of the current year for each event, let's consider each…
Q: Culver Corporation uses a periodic inventory system and reports the following for the month of June.…
A: FIFO (First-In, First-Out): Items bought first are sold or used first.LIFO (Last-In, First-Out):…
Q: Long-term operating assets can be reported on the balance sheet at fair value instead of historical…
A: The question is asking whether long-term operating assets can be reported at fair value instead of…
Q: Oriole Company Inc. had a beginning inventory of 105 units of Product RST at a cost of $7 per unit.…
A: The cost of goods available for sale is $15,195.Explanation:To determine the cost of goods available…
Q: Give me correct answer with explanation.s
A: The objective of the question is to calculate the cost of jobs transferred to Finished Goods…
Q: Pharoah Corporation provides the following information about its defined benefit pension plan for…
A: Continuity schedule is prepared to calculate the defined benefit obligation for the end of the year.…
Q: PR 6-10 (Static) (LO 6.4, 6.5) Tactile Incorporated uses a joint production process to... Tactile…
A: Joint cost is the total cost incurred in the manufacturing of two or more joint products during the…
Q: K Company has purchased a new machine costing $27,000 and the machine is expected to reduce the…
A: The objective of this question is to calculate the Net Present Value (NPV) of the machine purchased…
Q: OMG is in a country which has a capital gains tax, conducted the following transactions: a.…
A: Capital Gain and LossThe amount earned on the sale of long-term assets like investment, tangible…
Q: Kingbird sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: In 2022, Mao Li Corporation determined that a production machine used in its operations was impaired…
A: The question is asking how the gain due to an increase in the fair value of an asset, which was…
Q: Zofia is self-employed, files a Schedule C, and owns a business that is a qualified business for…
A: Deductions:Tax deduction is the amount that is deducted from the gross total income to calculate…
Q: BloWare's year-end unadjusted trial balance shows accounts receivable of $33,000 and sales of…
A: The bad debts refer to non-performing assets. When the sales are made on account and the amount due…
Q: 5 revenue rest revenue on sale of investments on debt securities on projected benefit obligation I…
A: Step 1: Introduction to statement of comprehensive incomeThe statement of income is produced at year…
Q: ework i 370253A%252+%252Flms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252 Saved Check my…
A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…
Q: Process costing divides units into three groups
A: Process costing is a costing method that is generally used in manufacturing, where the products are…
Q: Hiram's Lakeside is a popular restaurant located on Lake Washington In Seattle. The owner of the…
A: Activity rate is based on Total costs divided by total activity.Total cost of serving is based on…
Q: The following is information related to Sunland Company for its first month of operations. Credit…
A: When an organization prepares the subsidiary ledger, it contains more detailed information about the…
Q: In its first year, Firm KZ recognized $457,500 ordinary business income and a $13,250 loss on the…
A: Book income is the income shown in the financial statements of the business.Taxable income is the…
Q: Zachary Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its…
A: The relevant costs are the costs that are affected by the manager's decision, which means they…
Q: MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is…
A: The incremental effect on the profit after the elimination of one product is either a gain or loss…
Step by step
Solved in 3 steps with 2 images
- Perform a vertical analysis of the P&L (FS Company). "Formula: Vertical Analysis % Each income statement items / Revenues (or Net sales) Fill in each Blank. Round your answers to the nearest tenth percent, i.e. 4.5%. PLEASE SUBMIT YOUR ANSWERS IN % and include the % symbol. Do not leave any blank. If the answer is 0, be sure to put 0. Cost of goods sold Gross profit Net sales $858,000 Select] Other expenses Interest revenue Income from operations Interest expense 2018 Income before income taxes Income tax expense Net income 513,000 345,000 244,000 101,000 4,000 24,000 81,000 33,000 FS Company Comparative P&L statement Years Ended December 31, 2018 and 2017 48,000 % of sales Select J [Select] | Select | [Select] [Select] [Select] [ Select] Select] Select > >5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 2,540 2,000 1,610 1,495 127 80 1,737 803 80 723 181 542 Net Sales Operating costs except depreciation and…Solvency and Profitability Trend Analysis (Graph Picture from A-D is on the buttom for references) 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…
- Vertical analysis (common-size) percentages for Baker Company’s sales revenue, cost of goods sold, and expenses are as follows. Did Baker’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer. Vertical Analysis 2018 2017 2016 Sales revenue 100.0% 100.0% 100.0% Cost of goods sold 60.0 63.9 65.0 Expenses 26.0 26.6 27.5Common-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 $2,740,000 100 % Cost of goods sold 1,753,600 69 Gross profit $986,400 31 % Selling expenses $602,800 18 % Administrative expenses 219,200 7 Total operating expenses $822,000 25 % Operating income $164,400 6 % Other revenue 54,800 2 $219,200 8 % Other expense 27,400 1 Income before income tax $191,800 7 % Income tax expense 82,200 5 Net income $109,600 2 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive…a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average Sales $3,750,000 100.0 % 100.0% Cost of goods sold (2,062,500) 550.0 % (61.0)% Gross profit $1,687,500 45.0 % 39.0% Selling expenses $(1,125,000) 0.3 % (23.0)% Administrative expenses (262,500) 0.7 % (10.0)% Total operating expenses $(1,387,500) 37.0 % (33.0)% Operating income $300,000 8.0 % 6.0% Other revenue and expense: Other revenue 15,000 0.4 % 3.0% Other expense (3,750) 0.1 % (1.0)% Income before income tax $311,250 8.3 % 8.0% Income tax expense (93,750) 25 % (2.5)% Net income $217,500 5.8 % 5.5%
- A condensed income statement for Weber Associates and a partially completed vertical analysis follow. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of net revenues. TIP: In the prior year, Cost of Goods Sold was 31 percent of Net Revenues, computed as ($1,397 ÷ $4,571). 2. Does Cost of Goods Sold, as a percentage of Net Revenues, represent better or worse performance in 2019 as compared to 2018? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the vertical analysis by computing each missing line item as a percentage of net revenues. TIP: In the prior year, Cost of Goods Sold was 31 percent of Net Revenues, computed as ($1,397 ÷ $4,571). (Decreases should be indicated by a minus sign. Round your answers to the nearest whole percent.) Net Revenues Cost of Goods Sold Research and Development Expense Sales and Marketing Expense General and Administrative Expense Income from Operations Other…Refer to the following selected company information to determine the Year 1 and Year 2 common size percentages for operating expenses using Net sales as the base. Year 1 Year 2 Net sales $397,800 $489,400 Cost of goods sold 134,660 210,400 Operating expenses 73,910 76,690 Net earnings 27,490 38,740 Answer: A. 15.3% for Year 1 and 27.3% for Year 2 B. 33.9% for Year 1 and 43% for Year 2 C. 18.6% for Year 1 and 15.7% for Year 2 D. 20.4% for Year 1 and 19.3% for Year 2 E. 100% for Year 1 and 123% for Year 2b. The vertical analysis indicates that the cost of goods sold as a percent of sales by 8 percentage points, while selling expenses - by 4 percentage points, and administrative expenses by 1 percentage points. Thus, net income as a percent of sales by 3 percentage points.
- Assume the following sales data for a company:Current year$832,402 Preceding year608,082What is the percentage increase in sales from the preceding year to the current year? a.136.89% b.36.89% c.73.05% d.26.95% The relationship of $242,729 to $104,267, expressed as a ratio, is a.0.8 b.2.3 c.0.4 d.0.7A. The following items were taken from the financial statements of Salley, Inc. over a three year period: Using the horizontal analysis and 2016 as the base year, compute the change in percentages for net sales, cost of goods sold, gross profit, operating expenses and net income. Explain whether the trends are favorable or unfavorable for each item. Item 2018 Net Sales 825,000 Cost of Goods Sold 630,000 Gross Profit 195,000 Operating Expenses 100,000 Net Income P 95,000 2017 P 740,000 580,000 160,000 80,000 P 80,000 2016 675,000 535,000 140,000 75,000 P 65,000Prepare the common-size financial statement for the entities below and provide a reasoned explanation of the benefits relative to ratios when used to compare performance and establish trends. Income statements for year ending 31 December 2020 Energy Plus Co. ltd V8 Splash Ltd. $’000 $’000 Net revenue 35,119 30,990 Cost of goods sold 12,693 11,088 Gross profit 22,426 19,902 Selling & administrative expenses 13,158 11,358 Other operating expenses 819…