Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 13, Problem 13.3DC
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?
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River Valley Production Inc. seeks to increase its market share and improve its results. The company takes as a starting point the current scenario and the results obtained in 2018 and 2019. Like other companies, River Valley uses financial ratios (ratios) as tools for analyzing the results obtained at the end of the period. Consider the data presented in the financial statements below and analyze the company's results based on the financial ratios.1. Use the financial statements to calculate the following financial ratios for the years 2018 and 2019: 1.1 Days Sales Outstanding (DSO)1.2 Assets Turnover Ratio1.3 Return on Assets (ROA)1.4 Return on Equity (ROE)
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Accounts Receivable
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42,000
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Property, Plant, and Equipment, net
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This problem is based on the 2017 annual report of Campbell Soup Company. Answer the following questions. Refer to the Selected Financial Data for parts (a) to (d).Required:
Find the net sales in 2014. (Enter your answer in millions.)
Calculate the operating income (earnings before interest and taxes) in 2013. (Enter your answer in millions.)
Calculate the difference between operating income (earnings before interest and taxes) and net income (net earnings) in 2015. (Enter your answer in millions.)
Find the year(s) in which net income (net earnings) decreased compared to the previous year.
attatched are the charts needed for the following questions, I have tried to figure these out but I come up with incorrect answers. Thank You
The financial statements for Tyler Toys, Inc. are shown in the popup window:
LOADING...
.
Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders?
Tyler Toys, Inc.
Income Statement for Years Ending December 31, 2013 and 2014
2014
2013
Revenue
$14,147,690
$13,566,481
Cost of goods sold
$-8,447,054
$-8,131,319
Selling, general, and administrative expenses
$-998,405
$-981,658
Depreciation
$-1,498,619
$-1,472,478
EBIT
$3,203,612
$2,981,026
Interest expense
$-376,184
$-355,975
Taxes
$-1,074,423
$-997,519
Net income
$1,753,005
$1,627,532
Right-click on the table and select Copy to Clipboard and then right-click the
highlighted texts in the popup dialogue box and select Copy in order to paste its…
Chapter 13 Solutions
Financial Accounting: The Impact on Decision Makers
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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
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- Grammatico Company has just completed its third year of operations. The income statement is as follows: Selected information from the balance sheet is as follows: Required: Note: Round answers to two decimal places. 1. Compute the times-interest-earned ratio. 2. Compute the debt ratio. 3. CONCEPTUAL CONNECTION Assume that the lower quartile, median, and upper quartile values for debt and times-interest-earned ratios in Grammaticos industry are as follows: How does Grammatico compare with the industrial norms? Does it have too much debt?arrow_forwardComparing Two Companies in the Same Industry: Chipotle and Panera Bread Refer to the financial information for Chipotle and Panera Bread reproduced at the end of this book and answer the following questions: Required What is the dollar amount of inventories that each company reports on its balance sheet at the end of the most recent year? What percentage of total assets do inventories represent for each company? What does this tell you about the nature of their business? Refer to Note 1 in Chipotles annual report. What inventory valuation method does the company use? Refer to Note 2 in Panera Breads annual report. What inventory valuation method does the company use? How do both companies deal with situations in which the market value of inventory is less than its cost? Given the nature of their businesses, which inventory system, periodic or perpetual, would you expect both Chipotle and Panera Bread to use? Explain your answer.arrow_forwardJasmine Company provided the following income statements for its first 3 years of operation: Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.)arrow_forward
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How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License