Financial and Managerial Accounting - CengageNow
15th Edition
ISBN: 9781337911979
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 2, Problem 4MAD
Analyze Target
The following data (in millions) are taken from the financial statements of Target Corporation (TGT), the owner of Target stores:
a. For Target, determine the amount of change in millions and the percent of change rounded to one decimal place from Year 1 to Year 2 for:
1. Revenue
2. Operating expenses
3. Operating income
b. What conclusions can you draw from your analysis of the revenue and total operating expenses?
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Perform the Reperformance or Recalculation procedures to check the mathematical accuracy ofthe Income Statement. What issue did you find? What is the next step? Create a Correctedversion of the Income Statement.
Income Statement
For the Year Ended
For the Year Ended
Revenue
3/31/2021
3/31/2022
Sales Revenue: Corporate Accounts
$ 353,739.57
$ 343,050.56
Sales Revenues: Storefront
$ 80,649.00
$ 91,411.50
Total Sales Revenue
$ 434,388.57
$ 434,462.06
Cost of Goods Sold: Ingredients
$ 69,736.39
$ 64,645.64
Cost of Goods Sold: Boxes and Cupcake Cups
$ 3,875.55
$ 3,755.55
Cost of Goods Sold: Beverages
$ 5,466.50
$ 5,681.50
Total COGS
$ 76,078.44
$ 74,082.69
Gross Profit
$ 358,310.13
$ 360,379.37
Interest Revenue
$…
Complete this question by entering your answers in the tabs below.
Analysis Analysis
Bal Sheet Inc Stmt
Prepare a vertical analysis of an income statements for Year 4 and Year 3. (Percentages
may not add exactly due to rounding. Round your answers to 2 decimal places. (i.e., .2345
should be entered as 23.45).)
Revenues
Sales (net)
Other revenues
Total revenues
Expenses
Cost of goods sold
FANNING COMPANY
Vertical Analysis of Income Statements
Year 4
Selling, general, and
administrative expense
Interest expense
Income tax expense
Total expenses
Net income
Amount
$
231,900
9,300
241,200
118,800
54,200
6,800
22,800
202,600
$
38,600
Percentage
of Total
Analysis Bal Sheet
%
%
Year 3
Amount
$
211,200
6,400
217,600
102,100
49,100
6,000
21,800
179,000
$
Percentage
of Total
%
%
38,600
Analysis Inc Stmt >
Show less
Income statements for Walton Company for Year 3 and Year 4 follow:
WALTON COMPANY
Income Statements.
Sales
Cost of goods sold.
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
Required A Required B
Year 4
$200, 300
143,300
20,900
12,900
3,200
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Sales
Cost of goods sold
Selling expenses
Administrative expenses
Interest expense
Total expenses
Income before taxes
Income taxes expense
Net income
$180,300
$160,300
20,000
20,000
3,300
5,600
$ 14,400 $ 16,700
Complete this question by entering your answers in the tabs below.
Year 3
$180,300
X Answer is complete but not entirely correct.
Perform a vertical analysis, showing each income statement component as a percentage of…
Chapter 2 Solutions
Financial and Managerial Accounting - CengageNow
Ch. 2 - What is the difference between an account and...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Prob. 6DQCh. 2 - Assume that when a purchase of supplies of 2,650...Ch. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are one of the most common forms...
Ch. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Missing amount from an account On August 1, the...Ch. 2 - Trial balance errors For each of the following...Ch. 2 - Correcting entries The following errors took place...Ch. 2 - Prob. 8BECh. 2 - Prob. 1ECh. 2 - Chart of accounts Superior Interiors is owned and...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Transactions Innovative Consulting Co. has the...Ch. 2 - Journalizing and posting On February 11, 20Y9,...Ch. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Bavarian...Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Rocky Mountain Tours Co....Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Trial balance Based upon the data presented in...Ch. 2 - Trial balance The accounts in the ledger of...Ch. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Errors in trial balance The following preliminary...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries into T accounts and trial balance Marjorie...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance On November 1,...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Lexington Group has...Ch. 2 - Entries into T accounts and trial balance Ken...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Corrected trial balance Tech Support Services has...Ch. 2 - The transactions completed by PS Music during June...Ch. 2 - Analyze Amazon.com Amazon.com, Inc. (AMZN) is the...Ch. 2 - Prob. 2MADCh. 2 - Prob. 3MADCh. 2 - Analyze Target The following data (in millions)...Ch. 2 - Prob. 5MADCh. 2 - Prob. 6MADCh. 2 - Prob. 1TIFCh. 2 - Prob. 4TIFCh. 2 - Prob. 5TIF
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