BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

Using Common Size Income Statement Data

The 2019. 2018. and 2017 income statements for Spinner Entertainment Inc. follow.

Chapter 12, Problem 86PSB, Using Common Size Income Statement Data The 2019. 2018. and 2017 income statements for Spinner

Required:

1. Calculate how much each of the revenues and c changed from 2017 through 2019 using horizontal analysis On percentage terms, rounded to two decimal places). Utilize 2017 as the base year for both 2018 and 2019. You do not need to include the actual dollar amounts shown above.

2. CONCEPTUAL CONNECTION Discuss the primary causes of Spinner’s increase in net income in 2018 and the decrease in 2019.

To determine

(a)

Concept introduction:

Horizontal analysis is a way of making a comparison among two years in which one year is taken to be the base year and the comparison is done with the like items and results are given in terms of percentage.

To prepare:

A statement showing the changes in revenue and expense from 2017 through 2019 using horizontal analysis.

Explanation

The statement using horizontal analysis:

Spinner Entertainment Inc.
Consolidated Income Statements
Particulars 2019(in %) 2018(in %) 2017(in %)
Revenues:
Theme park and resorts 77.76 94.21 100
Filmed entertainment 70.64 84.93 100
Consumer products 50.37 75.10 100
Total Revenue 70.03 86.98 100
Costs and expenses:
Theme park and resorts 83.73 100.73 100
Filmed entertainment 74.08 82.65 100
Consumer products 44.95 71.79 100
Total costs and expenses 73.14 87.95 100
Operating income:
Theme park and resorts 57
To determine

(b)

Concept introduction:

Horizontal analysis is a way of making a comparison among two years in which one year is taken to be the base year and the comparison is done with the like items and results are given in terms of percentage.

The primary causes behind increase in net income in 2018 and decrease in net income in 2019.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 12 Solutions

Show all chapter solutions add
Ch-12 P-11DQCh-12 P-12DQCh-12 P-13DQCh-12 P-14DQCh-12 P-15DQCh-12 P-16DQCh-12 P-1MCQCh-12 P-2MCQCh-12 P-3MCQCh-12 P-4MCQCh-12 P-5MCQCh-12 P-6MCQCh-12 P-7MCQCh-12 P-8MCQCh-12 P-9MCQCh-12 P-10MCQCh-12 P-11MCQCh-12 P-12MCQCh-12 P-13MCQCh-12 P-14MCQCh-12 P-15MCQCh-12 P-16MCQCh-12 P-17MCQCh-12 P-18MCQCh-12 P-19MCQCh-12 P-20MCQCh-12 P-21MCQCh-12 P-22MCQCh-12 P-23MCQCh-12 P-24MCQCh-12 P-25MCQCh-12 P-26MCQCh-12 P-27MCQCh-12 P-28MCQCh-12 P-29MCQCh-12 P-30MCQCh-12 P-31MCQCh-12 P-32MCQCh-12 P-33MCQCh-12 P-34MCQCh-12 P-35MCQCh-12 P-36MCQCh-12 P-37MCQCh-12 P-38MCQCh-12 P-39MCQCh-12 P-40MCQCh-12 P-41MCQCh-12 P-42MCQCh-12 P-43MCQCh-12 P-44MCQCh-12 P-45MCQCh-12 P-46CECh-12 P-47CECh-12 P-48CECh-12 P-49CECh-12 P-50CECh-12 P-51CECh-12 P-52CECh-12 P-53CECh-12 P-54CECh-12 P-55CECh-12 P-56CECh-12 P-57BECh-12 P-58BECh-12 P-59BECh-12 P-60BECh-12 P-61BECh-12 P-62BECh-12 P-63BECh-12 P-64BECh-12 P-65BECh-12 P-66BECh-12 P-67BECh-12 P-68ECh-12 P-69ECh-12 P-70ECh-12 P-71ECh-12 P-72ECh-12 P-73ECh-12 P-74ECh-12 P-75ECh-12 P-76ECh-12 P-77ECh-12 P-78ECh-12 P-79ECh-12 P-80ECh-12 P-81ECh-12 P-82ECh-12 P-83ECh-12 P-84PSACh-12 P-85PSACh-12 P-86PSACh-12 P-87PSACh-12 P-88PSACh-12 P-89PSACh-12 P-90PSACh-12 P-91PSACh-12 P-92PSACh-12 P-93PSACh-12 P-84PSBCh-12 P-85PSBCh-12 P-86PSBCh-12 P-87PSBCh-12 P-88PSBCh-12 P-89PSBCh-12 P-90PSBCh-12 P-91PSBCh-12 P-92PSBCh-12 P-93PSBCh-12 P-94CCh-12 P-95.1CCh-12 P-95.2CCh-12 P-96.1CCh-12 P-96.2CCh-12 P-97.1CCh-12 P-97.2CCh-12 P-97.3CCh-12 P-97.4CCh-12 P-97.5CCh-12 P-97.6CCh-12 P-98.1CCh-12 P-98.2CCh-12 P-98.3CCh-12 P-99.1CCh-12 P-99.2CCh-12 P-99.3CCh-12 P-99.4CCh-12 P-99.5C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Identify several specific characteristics of intelligent behavior.

Principles of Information Systems (MindTap Course List)

What is meant by continuous improvement?

Principles of Information Systems (MindTap Course List)

Investigate the value of temperature for the following items. Write a brief report discussing how these values ...

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

What is a machine tool?

Precision Machining Technology (MindTap Course List)

Suggest three typical business situations where referential integrity avoids data problems.

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Tough Decision Two top candidates who applied for a job within your organization have interviewed well, andyou ...

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)