The following data relate to Alpha Company:2018 2017SalesP500,000 P400,000Cost of Goods Sold 240,000 200,000Gross Profit260,000 200,000160,000 120,00020perating ExpensesProfit100,000 80,000Required:A. Compute the amount and percentage change for eachitem.

Comparative Financial statements or also called horizontal analysis are used to compare the item of…

Answered: The following data relate to Alpha…

The following data relate to Alpha Company: 2018 2017 P500,000 P400,000 240,000 200,000 Sales Cost of Goods Sold Gross Profit 20perating Expenses 260,000 200,000 160,000 120,000 Profit 100,000 80,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

See similar textbooks

Related questions

Q: How much is the capital of CABLES Trading upon formation?

Q: Which is subject to donor's tax?* Merger of usufruct in the owner of the naked title. Delivery of…

A: Donor’s tax is tax imposed on the transfer of property through gifts or donations. The transfer…

Q: What is the dividend yield of a stock that pays an annual dividend of ₱3.75/share where the stock is…

A: Dividend yield is an accounting metric to measure the percentage of dividend paid in comparison to…

Q: explain the roles of integrated reporting in the following aspects: a. Providing information that is…

A: Integrated reporting is conducted by organization to communicate strategy, plan, Governance or…

Q: regardin on how to get income po... if you'll compute it the result will turn out 63,000 but on your…

A: Net Income = (Profit - Interest) x (100 - Tax rate) Net Income = (140,000 - 50,000) x (100 - Tax…

Q: According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets how much should…

A: Solution Concept As per the provisions of IAS 37 , if the outflow of resources is more likely than…

Q: Revo Company reports average total assets of $200,000, revenue of $57,000, net income of $19,000,…

A: Cash flow on total assets can be calculated by dividing the cash flow from operation by its total…

Q: Return on asset is a term often used to express income earned on capital invested in a business…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: The following issues relate to company clients of the firm of accountants you work for. Each company…

A: A lease to be classified as a capital lease needs to meet one of the following criteria:-(a) Lease…

Q: FIFO met

A: Given as, Material 3600 Labour 3400 Overheads 1000

Q: Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system,…

A: It is given in the question that Project II was sold during the year. Hence cost of the Project I…

Q: ____ are held for the purpose of meeting short-term cash commitments rather than for investment or…

A: Short term highly liquid investments that are readily convertible into known amounts of cash and…

Q: 6. A machine costs $30 000 to purchase and $12 000 per year to operate. The machine has a 10-year…

A: Solution Equivalent annual worth method is used to determine the equivalent annual cost that is…

Q: ABC Corporation reports on a calendar year. On August 15, 2020, it stopped business due to…

A: A tax year is an annual accounting period for paying taxes, keeping records and reporting income and…

Q: Budgets are useful vehicles for communication. Critically discuss the above statement and provide…

A: In cost accounting and management accounting, the budget is considered as an effective tool.…

Q: Barney exchanges an office building with an adjusted basis of $280,000 and a fair market value of…

A: The recognized gain or loss value of the asset is determined by comparing its carrying value with…

Q: ANSWER IN 20 MINUTES Sunstar Manufacturing Company produces special kitchen utensils using the…

A: The cost of sales is the overall of all prices incurred withinside the manufacturing of an offered…

Q: The estimated purchases of raw materials would be

A: Raw materials are those materials which are used directly for the production and manufacturing of…

Q: True or false: 1. The use of a dollar breakeven point is important when a firm has more than one…

A: The break-even point is the point at which total cost and total revenue are equal, meaning there is…

Q: What is the controllable margin for the year?

A: Controllable margin refers to a margin which is expected from a balanced and controlled process of…

Q: dvertising expense ravel expense Demonstration models given out Total variable xed expenses Rent…

A: Flexible Budget: Flexible budget is determining the variability of the variable and fixed cost at…

Q: Carlo runs a butcher shop, Carlo Angus MNL, in Manila. Jamie, a close friend who lives in Makati,…

A: A partnership is a form of business that is operated and managed by two or more individuals by…

Q: TRUE OR FALSE 7.If the financial asset is held for trading or if the financial asset is measured at…

A: For better understanding, we need to know about basic concepts

Q: On January 1,2020, Carlo and Jamie formed a partnership with investments of P160,000 and P240,000…

A: Capital balance on December 31, 2021 = Amount invested- share of Carlo in net loss for the year…

Q: Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is…

A: A journal entry is getting used to file a commercial enterprise transaction in an organization's…

Q: Then, prepare the journal entry assuming the payment is made within 10 days (the discount period).

A: Formula: Net sales = Sales - discount where, Discount = Sales x discount rate

Q: The payback period for this proposed investment is:

A: Payback period is the number of years it takes for company to recover the initial investment. It…

Q: Accounting Tom can use the 1031 like kind exchange rules to exchange his personal vehicle for…

A: The answer for the True or false question and relevant explanation are presented hereunder : 1031…

Q: Date Transactions 2022 March 1 The owner, Mrs. Clean, invested the following: building cash 2…

A: Post Closing Trial Balance - Post Closing Trial Balance is the summary of ledgers after providing…

Q: What is the inventory period for a firm with an annual cost of goods sold of P5 million, P1.2…

A: The inventory turnover ratio is a financial ratio that defines the number of times within which…

Q: When studying a project, the following variable costs were estimated for a normal production…

A: The Break-even point (BEP) indicates the level of sales (in units or value) that a company should…

Q: On January 1, Carlo, Jamie, Roma, and Fe, formed CABLES Trading, a local partnership, with capital…

A: Given: - Capital: Carlo=500,000 Jamie=250,000 Roma=350,000…

Q: Cost Flow Methods The following three identical units of Item K113 are purchased during April Item…

A: The inventory is valued using following methods: 1. FIFO 2. LIFO 3. Weighted average method

Q: Identify if TRUE or FALSE If the adjusted cash balance is P10, the unadjusted cash balance is P8…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: A company is considering the following alternatives: Alternative 1 Alternative 2 Revenues…

A: The income statement shows the net income or net loss that is calculated by deducting the expenses…

Q: Rob contributed P30,000 cash, a tract of land, and delivery equipment. Joe contributed P60,000 cash.…

A: It is an agreement made formally between two or more persons to operate and manage business with a…

Q: of Retained Earnings,

A: Retained earnings represent the earnings of the company accumulated over a period of time. The…

Q: Estimated total machine-hours used 2,500 4,000 $ 27,800 Estimated total fixed manufacturing overhead…

A: The overhead rate is calculated as estimated overhead cost divided by estimated base activity.

Q: Which of the following would probably be the appropriate allocation base for allocating overhead in…

A: Solution The manufacturing overhead means the indirect expenses that is incurred in relation to the…

Q: Sheffield Corp. reported the following for 2022: Income tax expense $68000 Contribution margin…

A: Introduction: Controllable cost is a variable cost that may be adjusted based on a business decision…

Q: Explain The role of the IIRC & The integrated reporting under the CPA.

A: integrated reporting is considered to be an important tool in the understanding the relationship…

Q: Q.1.1 For each of the following statements indicate if the statement is true or false. In your…

A: The underlying principles, premises, and circumstances that establish the parameters and…

Q: A characteristic describing a partnership as a judicial personality which can acquire, sell, or…

A: A legal entity is an organization with legal rights and duties, such as the ability to form…

Q: Daxter Bakers is trying to decide whethe Should keep its existing bread-making machi inological…

A: Let us first understand the meaning of opportunity cost Opportunity cost is the benefit foregone…

Q: C.S.Vaughn Company had these transactions involving notes payable. July 1, 2022 Borrows $51,500 from…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: S1: Investors and financial analysts rely on financial data to analyze the performance of a company…

A: Financial statements provide a snapshot of a corporation's financial health at a particular point in…

Q: Accounting A local education institution's budget for 2020/21 for meals was £944,622. During 2020/21…

A: Budget plays important role in everyone's life and Zero base budgeting is the budgeting process…

Q: Question1. What is the process costing income statement? Provide a hypothetical example of a…

A: Process costing is a term used in cost accounting to describe one method for collecting and…

Q: Jose, one of the most famous wedding designers in the country operates a manufacturing business…

A: Manufacturing is a process of converting raw material into finished goods using capital intensive…

Q: When one uses the after-tax weighted average cost of capital (WACC) to value a levered firm, the…

A: Introduction:- The main use of Weighted average cost of capital is to determine the cost of each…

Question

The following data relate to Alpha Company:
2018 2017
Sales
P500,000 P400,000
Cost of Goods Sold 240,000 200,000
Gross Profit
260,000 200,000
160,000 120,000
20perating Expenses
Profit
100,000 80,000
Required:
A. Compute the amount and percentage change for each
item.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Kincaid Company reported the following data (in millions) for the past two years:2019 2018$$$$$2801501304090$$$$$2501401103575Net revenues........................................Cost of goods sold...............................Gross profit..........................................Operating expenses..............................Operating income................................In a vertical analysis of 2019, the operating expenses percentage is closest toa. 225%.b. 69%.c. 14%.d. 32%.
You are given the following extract of an income statement: Particulars 2018 (OMR) 2019(OMR) Net sales 120,000 180,000 Cost of goods sold 108,000 120,000 Gross profit 12,000 60,000 Administrative expenses 2,500 3,800 What is the percentage change in administrative expenses if a common size statement is prepared
In the income statement below, ABC Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million) Year End 2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost of Sales (679.10) (659.00) (681.30) (667.00) Gross Operating Income Selling & Administration (339.70) (348.60) (351.20) (373.30) Depreciation (47.50) (52.00) (55.90) (75.20) Other Income/Expenses 11.80 7.60 7.00 8.20 Earnings Before Interest and Taxes Interest Income 1.30 1.40 1.70 2.00 Interest Expense (16.20) (15.10) (20.50) (23.70) Pre Tax Income Income Taxes (56.80) (64.20) (67.50) (72.60) Net Income Dividends (38.30) (38.70) (39.80) (40.10) Addition to Retained Earnings Group of answer choices 121.8 108.7 132.7 132.8 No choice given
Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million) YEAR END YEAR END YEAR END YEAR END 2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost Sales -679.1 -659 -681.3 -667 Gross Operating Income Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income/Expenses 11.8 7.6 7 8.2 Earnings Before Interest and Taxes Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Pre Tax Income Income Taxes -56.8 -64.2 -67.5 -72.6 Net Income Dividends -38.3 -38.7 -39.8 -40.1 Addition to Retained Earnings
Mac Donald company reported the following on its comparative income statement: 2017 2018 2019 Revenue 9,000 10,000 14,000 Cost of goods sold 6,000 4,000 9,000 Prepare a horizontal analysis of revenue , cost of goods sold and gross profit
Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2016 (in million). What is the right amount? Income Statement ($ Million) YEAR END YEAR END YEAR END YEAR END 2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost Sales -679.1 -659 -681.3 -667 Gross Operating Income Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income/Expenses 11.8 7.6 7 8.2 Earnings Before Interest and Taxes Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Pre Tax Income Income Taxes -56.8 -64.2 -67.5 -72.6 Net Income Dividends -38.3 -38.7 -39.8 -40.1