FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 2, Problem 61P
a.
To determine
Calculate the missing amounts for each of the four years.
b.
To determine
Calculate the gross profit margin for each of the four years and comment on its level and on any trends that are evident.
c.
To determine
Identify the major cost categories constituting for the operating expenses.
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Calculate the profit margin (net income or net profit/total sales)for Rock Castle construction for this fiscal year. What’s the percentage
Assume a company's Income Statement for Year 12 is as follows:
is
Income Statement Data
Net Revenues from Footwear Sales
Cost of Pairs Sold
Warehouse Expenses
Marketing Expenses
3.00.
2.10.
2.20.
29.0.
4.00.
Administrative Expenses
Operating Profit (Loss)
Interest Income (Expense)
Pre-tax Profit (Loss)
Income Taxes
Net Profit (Loss)
Year 12
(in 000s)
$ 580,000
350,000
45,000
90,000
15,000
80,000
Based on the above income statement data and the formula for calculating the interest coverage ratio
presented in the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ratio
(20,000)
60,000
18,000
$ 42,000
Ans
>
Income statements for Puppy Daycare Company for Year 3 and Year 4 follow:
Items
Sales
Cost of goods sold
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
Required A Required B
Year 4
$159,000
Sales
Cost of goods sold
Selling expenses
73,500
23,650
32,500
Administrative expenses
Total expenses
Income before taxes
Income taxes
Net income
129,650
29,350
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.
5,870
$ 23,480
Complete this question by entering your answers in the tabs below.
$
Year 3
$140,600
Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year
4.
Note: Round percentages to 1 decimal place. Negative amounts should be entered with a minus sign.
43,400
26,500
30,600…
Chapter 2 Solutions
FINANCIAL ACCOUNTING
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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