TABLE 5–4 Abbreviated Income Statement The Van Accessible Corp All figures in $thousands except Earnings Per Share 31-Dec-13 31-Dec-12 Total revenue Cost of Revenue Gross Profit 1,789,654 478,963 1,310,691 65,987 1,244,704 544,444 700,260 14.01 703,904 275,963 427,941 57,896 370,045 289,635 80,410 1.61 Operating Expenses Operating Income Interest and Taxes Net Income Earnings Per Share 50,000,000 Shares outstanding
TABLE 5–4 Abbreviated Income Statement The Van Accessible Corp All figures in $thousands except Earnings Per Share 31-Dec-13 31-Dec-12 Total revenue Cost of Revenue Gross Profit 1,789,654 478,963 1,310,691 65,987 1,244,704 544,444 700,260 14.01 703,904 275,963 427,941 57,896 370,045 289,635 80,410 1.61 Operating Expenses Operating Income Interest and Taxes Net Income Earnings Per Share 50,000,000 Shares outstanding
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 17.1EX
Related questions
Question
Using the Van Accessible data from Table 5–4:
- Calculate the degree of operating leverage (DOL).
- Calculate the degree of financial leverage (DFL).
- Calculate the degree of combined leverage (DCL).
- Explain what DOL, DFL, and DCL mean.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning