TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings Consolidated Statement of Earnings (in thousands, except earning per share) Fiscal Year Ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Net revenues Cash Sales Credit Sales Total Net Revenues $2,888 6,046 8,935 $2,751 5,258 8,009 $2,456 4,572 7,028 Cost of Sales Gross Profit 5,361 3,574 4,405 3,604 3,725 3,303 Salaries Insurance Depreciation General and administrative expenses Subtotal operating expenses Operating income Interest expense 1,258 155 150 489 2,052 1,522 10 1,183 116 135 479 1,913 1,691 11 1,112 93 122 361 1,687 1,616 11 Earnings before income taxes Income taxes 1,512 529 1,680 588 1,605 562 $ 983 Net Earnings Per Common Share Net Earnings Basic Net Earnings Diluted $1,092 $1,043 $ 0.28 $ 0.25 $ 0.31 $ 0.27 $ 0.30 $ 0.26 Weighted average shares outstanding: Basic Diluted 3,500 4,000 3,500 4,000 3,500 4,000

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question

Perform a horizontal analysis for the MLC income statement (Table 4–7)
for 2011 and 2012. Write an explanation of this analysis.

TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings
Consolidated Statement of Earnings
(in thousands, except earning per share)
Fiscal Year Ended:
Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011
Net revenues
Cash Sales
Credit Sales
Total Net Revenues
$2,888
6,046
8,935
$2,751
5,258
8,009
$2,456
4,572
7,028
Cost of Sales
Gross Profit
5,361
3,574
4,405
3,604
3,725
3,303
Salaries
Insurance
Depreciation
General and administrative expenses
Subtotal operating expenses
Operating income
Interest expense
1,258
155
150
489
2,052
1,522
10
1,183
116
135
479
1,913
1,691
11
1,112
93
122
361
1,687
1,616
11
Earnings before income taxes
Income taxes
1,512
529
1,680
588
1,605
562
$ 983
Net Earnings
Per Common Share
Net Earnings Basic
Net Earnings Diluted
$1,092
$1,043
$ 0.28
$ 0.25
$ 0.31
$ 0.27
$ 0.30
$ 0.26
Weighted average shares outstanding:
Basic
Diluted
3,500
4,000
3,500
4,000
3,500
4,000
Transcribed Image Text:TABLE 4-7| Moderately Large Corporation Consolidated Statement of Earnings Consolidated Statement of Earnings (in thousands, except earning per share) Fiscal Year Ended: Dec. 31, 2013 Dec. 31, 2012 Dec. 31, 2011 Net revenues Cash Sales Credit Sales Total Net Revenues $2,888 6,046 8,935 $2,751 5,258 8,009 $2,456 4,572 7,028 Cost of Sales Gross Profit 5,361 3,574 4,405 3,604 3,725 3,303 Salaries Insurance Depreciation General and administrative expenses Subtotal operating expenses Operating income Interest expense 1,258 155 150 489 2,052 1,522 10 1,183 116 135 479 1,913 1,691 11 1,112 93 122 361 1,687 1,616 11 Earnings before income taxes Income taxes 1,512 529 1,680 588 1,605 562 $ 983 Net Earnings Per Common Share Net Earnings Basic Net Earnings Diluted $1,092 $1,043 $ 0.28 $ 0.25 $ 0.31 $ 0.27 $ 0.30 $ 0.26 Weighted average shares outstanding: Basic Diluted 3,500 4,000 3,500 4,000 3,500 4,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Horizontal Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education