Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

Question

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Answer 1

Question

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

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Answer 2

Question

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

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Answer 3

Question

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

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Answer 4

Question

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Answer 6

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

Answer 7

Chapter 12, Problem 38BP

1.

To determine

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

Answer 8

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Answer 9

2.

To determine

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Answer 10

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Answer 11

3.

To determine

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 12 - Prob. 1DQ Ch. 12 - Which amount is the base amount for vertical...Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - How would you expect a recession to affect asset...Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

Prepare a two column common size income statement and a two column common size balance sheet for Company CA.

Evaluate the profitability ratios (a) ratio of gross profit to net sales; (b) ratio of operating income to net sales; and (c) ratio of net income to net sales. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

Evaluate the profitability ratios (a) ratio of current assets to total assets; and (b) ratio of stockholders’ equity to total assets. Compare those figures with industry averages and state whether those figures are better or worse than industry averages.

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Chapter 12 Solutions