Survey of Accounting (Accounting I)
Solutions
Survey of Accounting (Accounting I)
Vertical analysis for income statement
For 20Y6, Fishing Experiences Inc. initialed a sales promotion campaign that included the expenditure of an additional $45,000 for advertising. At the end of the year, Colt Schultz. the president, is presented with the following condensed comparative income statement:
Instructions
Prepare a comparative income statement for the two-year period, presenting a vertical analysis of each item in relationship to sales for each of the years.
Concept Introduction:
Vertical Analysis:
Vertical Analysis is used to analyze the % of items in statement for a particular period as the % of total amount. Vertical Analysis is done for a particular period for different items. For example, analysis of % of current assets as % of Total assets for a particular year is done using the Vertical analysis.
To Prepare:
A comparative income statement using Vertical analysis.
A comparative income statement using Vertical analysis is prepared as follows:
| Vertical Analysis of Income Statement | ||||
| 20X6 | 20Y5 | |||
| Amount | % | Amount | % | |
| A | (A/1200000) | B | (B/1000000) | |
| Sales | $ 1,200,000 | 100.00% | $ 1,000,000 | 100.00% |
| Cost of Goods Sold | $ (624,000) | -52.00% | $ (558,000) | -55.80% |
| Gross Profit | $ 576,000 | 48.00% | $ 442,000 | 44.20% |
|   Selling expenses | $ (120,000) | -10... | ||
Chapter 9 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addFlow of costs and income statement Technology Accessories Inc. is a designer, manufacturer, and distributor of ...
Financial & Managerial Accounting
Sales-related transactions The debits and credits for five related transactions, (1) through (5), are presented...
Financial And Managerial Accounting
Use the data in Exercises 9-27 and 9-28 to analyze the accounts receivable turnover ratios of H.J. Heinz Compan...
Financial Accounting
When viewed from the highest to most elemental level, the data hierarchy is a. file, record, attribute. b. attr...
Accounting Information Systems
The costs transferred from a prior process to a subsequent process are a. treated as another type of materials ...
Managerial Accounting: The Cornerstone of Business Decision-Making
Using the following revenue journal for Bowman Cleaners Inc., identify each of the posting references, indicate...
Financial Accounting
Todd Company purchased a patent with a remaining life of 10 years for 100,000 cash. Prepare the journal entry f...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Jacks Lawn Service Company has the following information related to its current year payroll as of December 31:...
College Accounting (Book Only): A Career Approach
International fair value accounting International Financial Reporting Standard No. 16 provides companies the op...
Accounting (Text Only)
Equity Method On January 1, 2019, Jones Company acquires a 30% interest in Fink Company by purchasing 3,000 of ...
Intermediate Accounting: Reporting And Analysis
Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, were a...
Corporate Financial Accounting
What information usually is included in the charter?
College Accounting, Chapters 1-27
Why is it necessary to adjust the Merchandise Inventory account under a periodic inventory system?
College Accounting (Book Only): A Career Approach
ATT and Facebook: Free cash flow ATT Inc. is a leading global provider of telecommunication services. Facebook,...
Financial & Managerial Accounting
Define each of the following loan terms, and explain how they are related to one another: the prime rate, the r...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Describe the four variables of the marketing mix.
Contemporary Marketing
If taxi fares in a city rise, what will happen to the total revenue received by taxi operators? If the fares ch...
Exploring Economics
According to the Quantity theory of money and the Fisher effect, if the central bank increases the rate of mone...
Principles of Macroeconomics (MindTap Course List)
When Werner and Thompson, a Los Angeles business and financial management firm, offered Iranian-born Firoz Bahm...
Management, Loose-Leaf Version
The Kroger Company is one of the largest grocery retailers in the United States, with over 2000 grocery stores ...
Statistics for Business & Economics, Revised (MindTap Course List)
Communication Technology E-Mail Social Media Team Web. The millennial (those born after 1985) do not remember a...
Essentials of Business Communication (MindTap Course List)
Pew Research Center is a nonpartisan polling organization that provides information about issues, attitudes, an...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
What are the key factors on which external financing depends, as indicated in the AFN equation?
Fundamentals of Financial Management (MindTap Course List)
FINANCIAL STATEMENTS The Davidson Corporation's balance sheet and income statement are provided here. Davidson ...
Fundamentals of Financial Management (MindTap Course List)
Draw an example of a production possibilities frontier for Robinson Crusoe, a shipwrecked sailor who spends his...
Principles of Microeconomics (MindTap Course List)
Describe four marketing management philosophies
MKTG 12:STUDENT ED.-TEXT
At the time you are studying the material in this chapter, which phases of the business cycle do you think the ...
Foundations of Business (MindTap Course List)
Consider a country that imports a good from abroad. For each of following statements, state whether it is true ...
Principles of Macroeconomics (MindTap Course List)
Referring to Appendix 9A, discuss fully the following statement: Protecting the private key is a critical eleme...
Pkg Acc Infor Systems MS VISIO CD
A key control concern described in Table 8.2 (p. 280) regarding the systems development manager is that systems...
Accounting Information Systems
Give an example of a positive statement and an example of a normative statement that somehow relates to your da...
Essentials of Economics (MindTap Course List)
Below are some data from the land of milk and honey. a. Compute nominal GDP, real GDP, and the GDP deflator for...
Brief Principles of Macroeconomics (MindTap Course List)
Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects,...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
(Game Theory) Suppose there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Draw and explain a production possibilities frontier for an economy that produces milk and cookies. What happen...
Principles of Economics (MindTap Course List)
Statement of cash flows direct method applied to PR 131A The comparative balance sheet of Livers Inc. for Decem...
Corporate Financial Accounting
What is value-chain analysis? What role does it play in strategic cost analysis?
Cornerstones of Cost Management (Cornerstones Series)
Research and Analysis Using the Annual Report Obtain Whole Foods' 2016 annual report (filed November 18, 2016) ...
Cornerstones of Financial Accounting
Over the past two years, Kermit Stone, the controller of Hilton Company, has been concerned that the company ha...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Represent the following data in bar graph form.
Microeconomics
Again using the data from Exhibit 11, derive personal income (PI) from national income (NI). Then make the requ...
Economics For Today
Which of the following statements explains the vicious circle of poverty? a. By investing in education and infr...
Micro Economics For Today
Economists prefer to compare Real GDP figures for different years instead of comparing GDP figures. Why?
Economics (MindTap Course List)
A 40 reduction in taxes increases Real GDP by 100, and a 50 increase in government spending increases Real GDP ...
Macroeconomics
A steel manufacturer needs to cool 17 pieces of steel. The weight and due date for each piece are listed in the...
Practical Management Science
What are the advantages of calculating a Supplier Performance Index? What are the challenges associated with de...
Purchasing and Supply Chain Management
