1-Complete vertical analysis by using the structure in the upper segment below and horizontal analysis in the lower segment below.
2-Briefly comment on the trend in the revenues and expenses below the horizontal analysis segment.
Homework Answers
|
Comparative consolidated Income statement |
||||
|
For the year ended December 31, 2018 |
||||
|
12/31/2018 Amount |
Percent |
12/31/2017 Amount |
Percent |
|
|
Sales |
$ 32,76,800.00 |
100.00% |
$ 31,46,400.00 |
100.00% |
|
Cost of Goods sold |
$ 20,88,800.00 |
63.75% |
$ 20,08,400.00 |
63.83% |
|
Gross profit |
$ 11,88,000.00 |
36.25% |
$ 11,38,000.00 |
36.17% |
|
Operating Expenses |
||||
|
Selling expenses |
$ 4,76,800.00 |
14.55% |
$ 5,18,000.00 |
16.46% |
|
Administrative expenses |
$ 4,47,200.00 |
13.65% |
$ 4,23,200.00 |
13.45% |
|
Total Operating expenses |
$ 9,24,000.00 |
28.20% |
$ 9,41,200.00 |
29.91% |
|
Operating Income |
$ 2,64,000.00 |
8.06% |
$ 1,96,800.00 |
6.25% |
|
Interest expense |
$ 65,600.00 |
2.00% |
$ 39,200.00 |
1.25% |
|
Income before income tax |
$ 1,98,400.00 |
6.05% |
$ 1,57,600.00 |
5.01% |
|
Income tax expense |
$ 62,400.00 |
1.90% |
$ 56,800.00 |
1.81% |
|
Net income |
$ 1,36,000.00 |
4.15% |
$ 1,00,800.00 |
3.20% |
|
Comparative consolidated Income statement |
||||
|
For the year ended December 31, 2018 |
||||
|
Increase (Decrease) |
||||
|
12/31/2018 |
12/31/2017 |
Amount |
Percent |
|
|
Sales |
$ 32,76,800.00 |
$ 31,46,400.00 |
$ 1,30,400.00 |
4.14% |
|
Cost of Goods sold |
$ 20,88,800.00 |
$ 20,08,400.00 |
$ 80,400.00 |
4.00% |
|
Gross profit |
$ 11,88,000.00 |
$ 11,38,000.00 |
$ 50,000.00 |
4.39% |
|
Operating Expenses |
||||
|
Selling expenses |
$ 4,76,800.00 |
$ 5,18,000.00 |
$ (41,200.00) |
-7.95% |
|
Administrative expenses |
$ 4,47,200.00 |
$ 4,23,200.00 |
$ 24,000.00 |
5.67% |
|
Total Operating expenses |
$ 9,24,000.00 |
$ 9,41,200.00 |
$ (17,200.00) |
-1.83% |
|
Operating Income |
$ 2,64,000.00 |
$ 1,96,800.00 |
$ 67,200.00 |
34.15% |
|
Interest expense |
$ 65,600.00 |
$ 39,200.00 |
$ 26,400.00 |
67.35% |
|
Income before income tax |
$ 1,98,400.00 |
$ 1,57,600.00 |
$ 40,800.00 |
25.89% |
|
Income tax expense |
$ 62,400.00 |
$ 56,800.00 |
$ 5,600.00 |
9.86% |
|
Net income |
$ 1,36,000.00 |
$ 1,00,800.00 |
$ 35,200.00 |
34.92% |
Comment
The company has shown great results due to decrease in expenses in comparison to last year. Even though revenues have not increased that much but due to high reduction in expense net income has increased by 35% approx.
, Alternate answer with 1 decimal place in Percentages
|
Comparative consolidated Income statement |
||||
|
For the year ended December 31, 2018 |
||||
|
Increase (Decrease) |
||||
|
12/31/2018.. |
12/31/2017.. |
Amount |
Percent |
|
|
Sales |
$ 32,76,800.00 |
$ 31,46,400.00 |
$ 1,30,400.00 |
4.1% |
|
Cost of Good sold |
$ 20,88,800.00 |
$ 20,08,400.00 |
$ 80,400.00 |
4.0% |
|
Gross profit |
$ 11,88,000.00 |
$ 11,38,000.00 |
$ 50,000.00 |
4.4% |
|
Operating Expenses |
||||
|
Selling expenses |
$ 4,76,800.00 |
$ 5,18,000.00 |
$ (41,200.00) |
-8.0% |
|
Administative expenses |
$ 4,47,200.00 |
$ 4,23,200.00 |
$ 24,000.00 |
5.7% |
|
Total Operating expenses |
$ 9,24,000.00 |
$ 9,41,200.00 |
$ (17,200.00) |
-1.8% |
|
Operating Income |
$ 2,64,000.00 |
$ 1,96,800.00 |
$ 67,200.00 |
34.1% |
|
Interest expense |
$ 65,600.00 |
$ 39,200.00 |
$ 26,400.00 |
67.3% |
|
Income before income tax |
$ 1,98,400.00 |
$ 1,57,600.00 |
$ 40,800.00 |
25.9% |
|
Income tax expense |
$ 62,400.00 |
$ 56,800.00 |
$ 5,600.00 |
9.9% |
|
Net income |
$ 1,36,000.00 |
$ 1,00,800.00 |
$ 35,200.00 |
34.9% |
|
Comparative consolidated Income statement |
||||
|
For the year ended December 31, 2018 |
||||
|
12/31/2018 Amount |
Percent |
12/31/2017 Amount |
Percent |
|
|
Sales |
$ 32,76,800.00 |
100.0% |
$ 31,46,400.00 |
100.0% |
|
Cost of Good sold |
$ 20,88,800.00 |
63.7% |
$ 20,08,400.00 |
63.8% |
|
Gross profit |
$ 11,88,000.00 |
36.3% |
$ 11,38,000.00 |
36.2% |
|
Operating Expenses |
||||
|
Selling expenses |
$ 4,76,800.00 |
14.6% |
$ 5,18,000.00 |
16.5% |
|
Administative expenses |
$ 4,47,200.00 |
13.6% |
$ 4,23,200.00 |
13.5% |
|
Total Operating expenses |
$ 9,24,000.00 |
28.2% |
$ 9,41,200.00 |
29.9% |
|
Operating Income |
$ 2,64,000.00 |
8.1% |
$ 1,96,800.00 |
6.3% |
|
Interest expense |
$ 65,600.00 |
2.0% |
$ 39,200.00 |
1.2% |
|
Income before income tax |
$ 1,98,400.00 |
6.1% |
$ 1,57,600.00 |
5.0% |
|
Income tax expense |
$ 62,400.00 |
1.9% |
$ 56,800.00 |
1.8% |
|
Net income |
$ 1,36,000.00 |
4.2% |
$ 1,00,800.00 |
3.2% |
Add Answer to:
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20x1
20x2
Variance (Horizontal)
#/$
%
Rooms available:
300.00
300.00
0.00%
Rooms sold:
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81,140.00
2.21%
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74.10%
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Complete a vertical and horizontal analysis for the balance
sheet.
Below is the summary operating statement
20x1
20x2
Variance (Horizontal)
#/$
%
Rooms available:
300.00
300.00
0.00%
Rooms sold:
79,388.00
81,140.00
2.21%
Occupancy:
72.50%
74.10%
2.21%
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183.62
191.33
7.71
4.20%
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133.12
141.78
8.66
6.51%
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176.20
185.65
9.45
5.36%
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75.55%
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should assess the firm’s liquidity, activity, debt, and
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