FINAN&MANAG ACCT (LL) W/ACCESS
9th Edition
ISBN: 9781265063900
Author: Wild
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 3.3AA
To determine
Introduction: Financial ratios help in comparing the performance of the company with its previous performance as well as that of competitors in the industry. They are divided into four building blocks. These blocks are liquidity and efficiency, solvency, profitability, and market prospects.
The gross margin ratio on sales outperformed or underperformed the industry average of 25%.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
In a common size financial statement, which of the following is given a percentage of 100
percent?
Total liabilities
Net income
Net Sales
Cost of goods sold
MA
MacBook Pro
57
W
P
#
LE
Key figures for Samsung follow (in $ millions).
Cash and equivalents
Accounts receivable, net
Inventories
Retained earnings
$ 23,069 Cost of sales
30,144 Revenues
22,966 Total assets
218,440
$ 126,336
197, 691
302,511
Required:
1. Compute common-size percents for Samsung using the data given.
2. What is Samsung's gross margin ratio on sales?
3. Does Samsung's gross margin ratio outperform or underperform the industry average of 25%?
1. Angel Trading presents the following sales figures in terms of
units.
2014
10 000
2015
11 650
2016
12 395
2017
14 670
2018
18 485
2019
Required: Determine the projected sales on 2019 using either
simple moving average or arithmetic geometric curve.
Chapter 13 Solutions
FINAN&MANAG ACCT (LL) W/ACCESS
Ch. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Prob. 9QSCh. 13 - Prob. 10QS
Ch. 13 - Prob. 11QSCh. 13 - Prob. 12QSCh. 13 - Prob. 13QSCh. 13 - Prob. 14QSCh. 13 - Prob. 15QSCh. 13 - Prob. 16QSCh. 13 - Prob. 17QSCh. 13 - Prob. 18QSCh. 13 - Prob. 19QSCh. 13 - Prob. 20QSCh. 13 - Prob. 21QSCh. 13 - Prob. 22QSCh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Exercise 13-6 Common-size percents P2
Simon...Ch. 13 - Prob. 7ECh. 13 - Exercise 13-8 Liquidity analysis and...Ch. 13 - Exercise 13-9 Risk and Capital structure analysis...Ch. 13 - Exercise 13-10 Efficiency and Profitability...Ch. 13 - Exercise 13-11 profitability analysis P3 Refer to...Ch. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Problem 13-4A Calculation of financial statement...Ch. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Prob. 1PSBCh. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 4PSBCh. 13 - Prob. 5PSBCh. 13 - Problem 13-6BAIncome statement computations and...Ch. 13 - Prob. 13SPCh. 13 - Prob. 1.1AACh. 13 - Prob. 1.2AACh. 13 - Prob. 1.3AACh. 13 - Prob. 2.1AACh. 13 - Prob. 2.2AACh. 13 - Prob. 2.3AACh. 13 - Prob. 3.1AACh. 13 - Prob. 3.2AACh. 13 - Prob. 3.3AACh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Where on the income statement does a company...Ch. 13 - Prob. 1BTNCh. 13 - Prob. 2BTNCh. 13 - Prob. 3BTNCh. 13 - Prob. 4BTNCh. 13 - ENTREPRENEURIAL DECISION A1 P1 P2 P3 BTN 13-7...
Knowledge Booster
Similar questions
- Comparing Income Statements and Balance Sheets of CompetitorsFollowing are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch (clothing retailer in the high-end market) and TJX Companies (clothing retailer in the value-priced market). (a) Express each income statement amount as a percentage of sales. Round your answers to one decimal place (ex: 0.2345 = 23.5%). Income Statement ($ millions) ANF TJX Sales $4,680 $21,058 Cost of goods sold 1,599 Answer 16,021 Answer Gross profit 3,081 Answer 5,037 Answer Total expenses 2,435 Answer 4,003 Answer Net income $ 646 Answer $ 1,034 Answer (b) Express each balance sheet amount as a percentage of total assets. Round your answers to one decimal place (ex: 0.2345 = 23.5%). Balance Sheet ($ millions) ANF TJX Current assets $1,010 Answer $3,929 Answer Long-term assets 1,627 Answer 2,608 Answer Total assets…arrow_forwardAn analyst is evaluating the profi tability of Daimler AG (Xetra: DAI) over a recentfi ve-year period. He gathers the following revenue data and calculates the followingprofi tability ratios from information in Daimler’s annual reports:2009 2008 2007 2006 2005Revenues (€ millions) 78,924 98,469 101,569 99,222 95,209Gross profi t margin 16.92% 21.89% 23.62% 20.60% 19.48%Operating profi t (EBIT) margin a–1.92% 2.77% 8.58% 5.03% 3.02%Pretax margin –2.91% 2.84% 9.04% 4.94% 2.55%Net profi t margin –3.35% 1.73% 4.78% 3.19% 2.37%aEBIT (Earnings before interest and taxes) is the operating profi t metric used by Daimler.Daimler’s revenue declined from 2007 to 2008 and from 2008 to 2009. Further,Daimler’s 2009 revenues were the lowest of the fi ve years. Management’s discussion ofthe decline in revenue and EBIT in the 2009 Annual Report notes the following:Th e main reason for the decline [in EBIT] was a signifi cant drop in revenuedue to markedly lower unit sales in all vehicle segments as a…arrow_forward($ and units in 000s) Units Contact Su textbook, v help. Sales COGS Gross Profit Selling Expense Administrative Expense Asking Operating Income Ask one qu Other Income (Expense) Keep quest Net Income include all 2018 80 1,200 720 480 204 216 60 84 144 100% 2017 62.5 MAY 30 1,000 500 500 250 150 100 0 100 100% Required: Using vertical analysis, evaluate the results of operations in 2017 and 2018. Quantify the percentages of each line item to sales. Evaluate the drivers of net income, including gross profit, selling and administrative expenses, and other income. What is the overall percentage point change in profitability and what is the contribution (positive or negative) of each driver. Explain the effect of each driver on profitability and the possible scenarios of each based on the data above. Which are areas of concern? Which areas are positive? What additional questions would you have? Preview Like you, we deeply value honesty and integrity. Learn about our honor co...e. *Response…arrow_forward
- 1. The annual net income of MAC Industries since 2005 is given below. Years t (since 2005) Net Income 1 4 6 12 15 $1,500 $2,500 $2,875 $2,850 $2,250 a. Create a scatter plot that includes your curve of best fit on top of the data. You should try several functions and make your choice based on best r-squared value. b. Find the year that Net Income was at its highest point. c. What was the income in that year?arrow_forwardVertical analysis (common-size) percentages for Cullumber Company’s sales revenue, cost of goods sold, and expenses are listed here. Vertical Analysis 2022 2021 2020 Sales revenue 100.0 % 100.0 % 100.0 % Cost of goods sold 60.0 64.2 65.6 Expenses 24.7 27.1 29.5 Calculate Cullumber’s net income as a percent of sales. (Round answers to 1 decimal place, e.g. 5.2.) 2022 2021 2020 Net income Enter percentages rounded to 1 decimal place. Enter percentages rounded to 1 decimal place. Enter percentages rounded to 1 decimal place. Did Cullumber’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Cullumber’s net income as a percent of sales Choose the correct answer increaseddecreasedremained unchangedarrow_forwardCafua Corporation makes cell phone covers and has the following comparative income statement for the years ended December 31, 2025 and 2024: (Cick the icon to view the comparative income statement.) Read the requirement. Begin by completing a horizontal analysis of Cafua Corporation's income statement. (Use a minus sign or parentheses to show an amount and/or percentage decrease. Round all percentages to the nearest tenth percent, X.X. For example, enter 10.2% as 10.2. Complete all input boxes. If the base amount is $0, enter a "0" in the percentage column.) Revenues: Net Sales Revenue Other Revenues Total Revenues Expenses: Cost of Goods Sold Engineering, Selling, and Administrative Expenses Interest Expense Income Tax Expense Other Expenses Total Expenses Cafua Corporation Income Statement Years Ended December 31, 2025 and 2024 Net Income 2025 $ $ 1,100,000 $ 1,000,000 9,000 1,100,000 1,009,000 781,000 205,700 26,400 27,500 8,800 2024 1,049,400 50,600 $ 673,000 193,000 15,000 14,000…arrow_forward
- Save Mivatin Products Ltd. reported the following on its 2011 comparative income statement: (In millions) 2011 2010 2009 Net sales $148.5 $139.0 $149.5 Cost of sales 129.5 108.0 114.0 Perform a horizontal analysis of net sales, cost of sales, and gross margin, both in dollar amounts and in percentages, for 2011 and 2010. (Round the percentages to one decimal place, X.X%. Use a minus sign or parentheses to indicate a decrease.) Mivatin Products Ltd. Income Statement - (Adapted) For the Year Ended December 31, 2011 and 2010 Increase/(Decrease) (amounts in millions) 2011 2010 2011 2010 2009 Amt. % Amt % Net sales $148.5 $139.0 $149.5 Cost of sales 129.5 108.0 114.0 Gross marginarrow_forwardCompute for the ratio that measures the margin of sales of Nezuko Inc. is achieving?arrow_forwardRefer to the following mentioned data. Net sales Cost of products sold Gross margin (In millions) 2017 2016 $34,954 $30, 040 14,274 13, 395 $20, 680 $16, 645 2017 2016 2015 Required: a. Calculate the gross profit ratio for each of the past three years. (Round your answers to 2 decimal places.) 2015 $26, 091 13, 655 $12, 436 59.16 % 55.41 % 47.66 %arrow_forward
- Refer to the following mentioned data. Net sales Cost of products sold Gross margin 2017 2016 2015 Required: a. Calculate the gross profit ratio for each of the past three years. (Round your answers to 2 decimal places.) (In millions) 2016 2017 2015 $34,894 $30,411 $26,113 14,318 13,376 13,767 $20,576 $17,035 $12,346 Cost of goods sold Gross profit 58.94 % % % b. Assume that Campbell's net sales for the first four months of 2018 totaled $12.79 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2017. (Round Intermediate calculations to 2 decimal places. Enter your answers in millions rounded to nearest whole number (1.e., 5,000,000 should be entered as 5).) million millionarrow_forwardWhat is the comparison (analysis) of the Days Sales Outstanding of Industry Average Ratio and the Company A Ratio? The Days Sales Outstanding has decreased and increased. Why? Industry Average DSO 2015: 138 days 2016: 104 days 2017: 173 days 2018: 125 days 2019: 98 days Company A DSO 2015: 245 days 2016: 338 days 2017: 332 days 2018: 169 days 2019: 81 daysarrow_forwardSome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Llabiltles and Owners' Equlty Current assets Current liabilities $ 2,198 $ 2,690 $ 2,941 $ 2,857 Accounts payable 4,722 12,658 Cash Notes payable Other Accounts recelvable 5,691 13,692 1,795 2,206 116 Inventory 99 Total $20,321 $22,240 Total $ 4,092 $ 5,012 $ 14,200 $16,960 Long-term debt Owners' equity Common stock 42,500 and paid-in surplus $42,500 $ Accumulated retained 39,769 Flxed assets 15,699 earnings Net plant and 82,269 $56,170 $ 82,001 Total $ 58,199 $ equipment Total liabilitles and owners' 104,241 Total assets $76,491 $104,241 $ 76,491 $ equity SMOLIRA GOLF, INC. 2019 Income Statement Sales $189,170 Cost of goods sold Depreclation 127,103 5,243 $56,824 1,340 EBIT Interest pald Taxable Income $55,484 Тахes 19,419 Net Income $36,065 Dividends $ 11,995 24,070 Retalned earningsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College