-
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions) $245 $258 125 Revenues Cost of Purchased Crude Oil and Products Other Operating costs Income before Income Tax Expense Income Tax Expense Net Income Required: 1. Compute the gross profit percentage for each year....
-
E13-4 Computing Profitability Ratios (LO 13-4, LO 13-5) According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016 Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit Selling. General, and Administrat Expenses Interest Expense Income before Income Tax Expense Income Tax...
-
The average price of a gallon of gas in 2013 dropped $0.12 (3 percent) from $3.61 in 2012 (to $3.49 in 2013). Let's see whether these changes are reflected in the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions) 2013 2012 $230 $246 128 56 Total Revenues Costs of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income 120 61 49 23 27 $ 26...
-
Cost of Goods Sold Cross Profit Selling General, and sinistra Income before Income Tax Expe Income Tax Expense Net Tato Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2015 to 2016 is the beginning of a sustained trend, is Computer Tycoon likely to earn more or less gross profit from each dollar of sales in 2017? 2. Compute the net profit margin for each year. Given your calculations here and in requirement explain...
-
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 4.8 percent between 2012 and 2013. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31. 2013. $110,000 $135,000 Sales Revenue Cost of Goods Sold 65,000 75,500 45,000 59,500 39,000 Gross Profit Selling, General, and Administrative Expenses 37,000 Interest Expense 600 525 Income before Income Tax Expense7,40019,975 6,000...
-
E13-1 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses (LO 13-2, LO 13-3, LO 13-5) The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2-a. Conduct a...
-
00 E13-8 Computing and Interpreting Liquidity Ratios [LO 13-4, LO 13-5) Trim Corporation is the largest uniform supplier in North America Selected information from its annual report follows. For the 2016 fiscal year, the company reported sales revenue of $60 billion and Cost of Goods Sold of $42 billion Fiscal Year 2016 2015 Balance Sheet (amounts in millions) Cash and Cash Equivalents $53e $425 Accounts Receivable, net 790 Inventories Prepaid Rent and Other Current Assets 650 Accounts Payable Salaries and...
-
E13-8 Computing and Interpreting Liquidity Ratios (LO 13-4, LO 13-5] Trim Corporation is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2016 fiscal year, the company reported sales revenue of $4.7 billion and Cost of Goods Sold of $2.9 billion. Fiscal Year 2016 2015 Balance Sheet (amounts in millions) Cash and Cash Equivalents $400 $360 Accounts Receivable, net 580 Inventories 260 270 Prepaid Rent and Other Current Assets 585 520 Accounts Payable...
-
E13-8 Computing and Interpreting Liquidity Ratios (LO 13-4, LO 13-5) Trim Corporation is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2016 fiscal year, the company reported sales revenue of $6.1 billion and Cost of Goods Sold of $4.3 billion. Fiscal Year 2016 2015 Balance Sheet (amounts in millions) Cash and Cash Equivalents $540 $430 Accounts Receivable, net 860 810 Inventories 330 340 Prepaid Rent and Other Current Assets 795 660 Accounts...
-
E13-7 Computing and Interpreting Selected Liquidity Ratios (LO 13-4, LO 13-5] Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Accounts receivable (net) Inventory Beginning $35,000 50,000 Ending $45,000 30,000 Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required...
The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let's see whether these changes are reflected in the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions) $245 $258 125 Revenues Cost of Purchased Crude Oil and Products Other Operating costs Income before Income Tax Expense Income Tax Expense Net Income Required: 1. Compute the gross profit percentage for each year....
E13-4 Computing Profitability Ratios (LO 13-4, LO 13-5) According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 3.8 percent between January and December 2016 Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31, 2016 Sales Revenue Cost of Goods Sold Gross Profit Selling. General, and Administrat Expenses Interest Expense Income before Income Tax Expense Income Tax...
The average price of a gallon of gas in 2013 dropped $0.12 (3 percent) from $3.61 in 2012 (to $3.49 in 2013). Let's see whether these changes are reflected in the income statement of Chevron Corporation for the year ended December 31, 2013 (amounts in billions) 2013 2012 $230 $246 128 56 Total Revenues Costs of Crude Oil and Products Other Operating Costs Income before Income Tax Expense Income Tax Expense Net Income 120 61 49 23 27 $ 26...
Cost of Goods Sold Cross Profit Selling General, and sinistra Income before Income Tax Expe Income Tax Expense Net Tato Required: 1. Compute the gross profit percentage for each year. Assuming that the change from 2015 to 2016 is the beginning of a sustained trend, is Computer Tycoon likely to earn more or less gross profit from each dollar of sales in 2017? 2. Compute the net profit margin for each year. Given your calculations here and in requirement explain...
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipment fell 4.8 percent between 2012 and 2013. Let's see whether these changes are reflected in the income statement of Computer Tycoon Inc. for the year ended December 31. 2013. $110,000 $135,000 Sales Revenue Cost of Goods Sold 65,000 75,500 45,000 59,500 39,000 Gross Profit Selling, General, and Administrative Expenses 37,000 Interest Expense 600 525 Income before Income Tax Expense7,40019,975 6,000...
E13-1 Preparing and Interpreting a Schedule for Horizontal and Vertical Analyses (LO 13-2, LO 13-3, LO 13-5) The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Required: 1. Conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of Insignia Corporation for the year ended December 31, 2015 (amounts in billions). 2-a. Conduct a...
00 E13-8 Computing and Interpreting Liquidity Ratios [LO 13-4, LO 13-5) Trim Corporation is the largest uniform supplier in North America Selected information from its annual report follows. For the 2016 fiscal year, the company reported sales revenue of $60 billion and Cost of Goods Sold of $42 billion Fiscal Year 2016 2015 Balance Sheet (amounts in millions) Cash and Cash Equivalents $53e $425 Accounts Receivable, net 790 Inventories Prepaid Rent and Other Current Assets 650 Accounts Payable Salaries and...
E13-8 Computing and Interpreting Liquidity Ratios (LO 13-4, LO 13-5] Trim Corporation is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2016 fiscal year, the company reported sales revenue of $4.7 billion and Cost of Goods Sold of $2.9 billion. Fiscal Year 2016 2015 Balance Sheet (amounts in millions) Cash and Cash Equivalents $400 $360 Accounts Receivable, net 580 Inventories 260 270 Prepaid Rent and Other Current Assets 585 520 Accounts Payable...
E13-8 Computing and Interpreting Liquidity Ratios (LO 13-4, LO 13-5) Trim Corporation is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2016 fiscal year, the company reported sales revenue of $6.1 billion and Cost of Goods Sold of $4.3 billion. Fiscal Year 2016 2015 Balance Sheet (amounts in millions) Cash and Cash Equivalents $540 $430 Accounts Receivable, net 860 810 Inventories 330 340 Prepaid Rent and Other Current Assets 795 660 Accounts...
E13-7 Computing and Interpreting Selected Liquidity Ratios (LO 13-4, LO 13-5] Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Accounts receivable (net) Inventory Beginning $35,000 50,000 Ending $45,000 30,000 Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required...