The second step is to prepare a common-size income statement for the firm. Complete the common-size income statement below: (Round to one decimal place.) Common-Size Income Statement 2016 Revenues $ 29,970 % Cost of goods sold (20,030) Gross profit $ 9,940 % Operating expenses (8,030) Net operating income $ 1,910 % Interest expense (860) Earnings before taxes $ 1,050 % Income taxes (382) Net income $ 668 %

The second step is to prepare a common-size income statement for the firm. Complete the common-size income statement below: (Round to one decimal place.) Common-Size Income Statement 2016 Revenues $ 29,970 % Cost of goods sold (20,030) Gross profit $ 9,940 % Operating expenses (8,030) Net operating income $ 1,910 % Interest expense (860) Earnings before taxes $ 1,050 % Income taxes (382) Net income $ 668 %

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter4: The Accounting Cycle

Section: Chapter Questions

Problem 2MAD: Analyze and compare Zynga, Electronic Arts, and Take-Two Data (in millions) from recent financial...

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Comparing Two Companies in the Same Industry: Chipotle and Panera Bread This case should be completed after responding to the requirements in Decision Case 13-2. Refer to the financial statement information of Chipotle and Panera Bread reprinted at the back of the book. Required Using the format in Example 13-5, prepare common-size comparative income statements for 2014 and 2013, for Panera Bread. Use total revenues as the base (i.e., 100%). Round all percentages to the nearest one-tenth of a percent. The common-size comparative income statements indicate the relative importance of items on the statement. Compare the common-size income statements of Panera Bread and Chipotle. What are the most important differences between the two companies income statements? Using the format in Example 13-4, prepare common-size comparative balance sheets at the end of 2014 and 2013, for Panera Bread. Round all percentages to the nearest one-tenth of a percent. The common-size comparative balance sheets indicate the relative importance of items on the statement. Compare the common-size balance sheets of Panera Bread and Chipotle. What are the most important differences between the two companies balance sheets?
Analyze and compare Zynga, Electronic Arts, and Take-Two Data (in millions) from recent financial statements of Zynga Inc. (ZNGA), Electronic Arts Inc. (EA), and Take-Two Interactive Software, Inc. (TTWO) are as follows: a. Compute the working capital for Year 2 and Year 1 for each company. b. Which company has the largest working capital? c. Compute the current ratio for Year 2 and Year 1 for each company. Round to one decimal place. d. For Year 2, rank the companies from most liquid to least liquid based upon the current ratio.
The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:
Profitability Ratios The following data came from the financial statements of Israel Company: Revenue $900,000 Assets $600,000 Expenses 600,000 Liabilities 100,000 Net income 300,000 Average equity 500,000 Required:
Active Fast Berhad has the following income statement items for 2021: Revenue/Sales RM559,236 Cost of goods sold RM311,003 EBIT RM248,233 Interest expenses RM93,938 Income tax expenses RM54,003 Dividend payment 40% of net profit What is the amount of the firm's retained earnings? Select one: a. RM163,438 b. RM60,175 c. RM40,117 d. RM148,910
Given the following information for Smashville, Inc., construct an income statement for the year: Cost of goods sold: $189,000 Investment income: $1,700 Net sales: $323,000 Operating expense: $43,000 Interest expense: $7,400 Dividends: $9,000 Tax rate: 21 % What are retained earnings for the year?
Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2016 (in million). What is the right amount? Income Statement ($ 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
Presented below is the 2024 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2024 ($ in thousands) Sales revenue $ 8,020 Operating expenses: Cost of goods sold $ 3,530 Depreciation expense 410 Insurance expense 270 General and administrative expense 1,970 Total operating expenses 6,180 Income before income taxes 1,840 Income tax expense (770) Net income $ 1,070 Balance Sheet Information ($ in thousands) December 31, 2024 December 31, 2023 Assets: Cash $ 470 $ 370 Accounts receivable 920 1,000 Inventory 810 770 Prepaid insurance 135 105 Equipment 2,950 2,650 Less: Accumulated depreciation (1,180) (770) Total assets $ 4,105 $ 4,125 Liabilities and Shareholders' Equity: Accounts payable $ 470 $ 530 Accrued liabilities (for general & administrative expense) 470 570 Income taxes payable 370 320 Notes…
Tisdale Incorporated reports the following amount in its December 31, 2021, income statement. Sales revenue Nonoperating revenue Selling expenses General expenses $300,000 110,000 60,000 50,000 Income tax expense Cost of goods sold Administrative expenses $ 30,000 190,000 40,000 Required:1. Prepare a multiple-step income statement.2. Explain how analyzing the multiple levels of profitability can help in understanding the future profit-generating potential of Tisdale Incorporated.
Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions. Income Statement Total Sales213.8 Cost of Sales151.3 Gross Profit213.8-151.3 Selling and Administrative Expenses22.3 Research and Development 7.7 Depreciation and Amortization4.5 Other Income2.4 EBIT213.8-151.3-22.3-7.7-4.5+2.4 Interest Expense5.8 Pretax Income213.8-151.3-22.3-7.7-4.5+2.4-5.8 Taxes( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.30 Net Income( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.70 Balance Sheet Assets Liabilities Cash65.8Accounts Payable43.3Accounts Receivable54.4Notes Payable/Short term debt1.6Inventories4.4 Total Current Assets65.8+54.4+4.4Total Current Liabilities43.3+1.6 Net property, plant and equipment103.4Long-term debt80.0Total long-term assets103.4Total long-term debt liabilities80.0 Total Liabilities43.3+1.6+80.0 Stockholders' Equity (Total Equity)65.8+ 54.4+4.4+103.4-43.3-1.6-80.0Total…
What would a multi-step vertical analysis income income statement look like for Brea Corporation as of December 31, 2020? Ledger Accounts and their balances: Accounts payable $18,700 Accounts receivable 33,900 Cash 30,700 Cost of goods sold 257,100 General and Administration Expenses 257,100 Inventory 46,700 Income taxes 28,700 Other revenue & gains 900 Other expenses & losses 1,700 Prepaid expenses 2,100 Sales revenue 762,400 Selling expenses 135,200
The President of Paroy, has asked you to gather some statistics about his Company’s solvency. You have compiled the following data: Net Income Income Tax Rate P 900 000 34% Total Liabilities Total Stockholders 2 048 000 Interest Expense 100 000 Equity 4 352 000 REQUIRED: Using these data, calculate: 1.)Times interest earned ratio 2.)Debt ratio 3.)Equity ratio

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Common-Size Income Statement		2016
Revenues	$	29,970	%
Cost of goods sold		(20,030)
Gross profit	$	9,940	%
Operating expenses		(8,030)
Net operating income	$	1,910	%
Interest expense		(860)
Earnings before taxes	$	1,050	%
Income taxes		(382)
Net income	$	668	%