When comparing gross margin and net income from one company to its industry average is a...
When comparing gross margin and net income from one company to its industry average is a representation of . . .
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Diagonal Analysis |
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Horizontal Analysis |
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Regression Analysis |
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Vertical Analysis |
Homework Answers
Vertical analysis is a method of financial statement analysis in which each line item is listed as a percentage of a base figure within the statement.
Vertical analysis makes it much easier to compare the financial statements of one company with another, and across industries. This is because one can see the relative proportions of account balances.
The answer is d)
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When comparing gross margin and net income from one company to
its industry average is a...
- Which of the following is an example of vertical analysis? A. Comparing income statement items...
- Which of the following is an example of vertical analysis? A. Comparing income statement items as a percentage of sales. B. Comparing the change in sales over time. C. Comparing debt with industry averages. D. Comparing gross profit across companies. - When a company issues 30,000 shares of $5 par value common stock for $50 per share, the journal entry for this issuance would include: A. A credit to Additional Paid-in Capital for $1,350,000 B. A debit to Additional...
Data Table Specialty Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31,...
Data Table Specialty Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Specialty Average Net Sales Revenue 777,000 100.0 % 522,144 Cost of Goods Sold 65.8 Gross Profit 254,856 34.2. Operating Expenses 163,170 19.7 Operating Income 91,686 14.5 3,885 Other Expenses 0.4 $ 87,801 14.1 % Net Income i Data Table Specialty Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Specialty Average $ Current Assets Property, Plant, and Equipment,...
A company had net sales of $784,800 and cost of goods sold of $560,400. Its net income was $24,770. The company's gross...
A company had net sales of $784,800 and cost of goods sold of $560,400. Its net income was $24,770. The company's gross margin ratio equals:
A company has sales of $2.5m, a gross margin percent of 40% and a net income...
A company has sales of $2.5m, a gross margin percent of 40% and a net income of $500,000. The balance sheet shows total assets of $1.1m; total liabilities of $600,000; retained earnings of $350,000 and notes payable of $150,000. Please calculate the following: a. Return on Equity: b. Profit margin: c. Return on Assets: d. Cost of goods sold:
Financial Analysis Questions on; Industry: Automotive 1. When the debt to equity ratio and long term...
Financial Analysis Questions on; Industry: Automotive 1. When the debt to equity ratio and long term debt to equity ratio is ABOVE the industry average is it bad or good and what does it tell? 2. When the Inventory turnover ratio, Net income/Employees ratio, and Revenue/Employees ratio are BELOW the industry average, what does it tell? Explain and is it bad or good. 3. When the Asset turnover ratio and receivable turnover ratio are ABOVE the industry average is it...
How does contribution margin differ from gross margin? VIRUS How will net income under variable costing...
How does contribution margin differ from gross margin? VIRUS How will net income under variable costing compare to net income under absorption costing in the following three situations? Explain briefly the cause of any differences. (a) Units produced equal units sold (b) Units produced exceed units sold (c) Units produced are less than units sold
The company reported net Income this year as follow:s ales Cost of goods sold Gross margin...
The company reported net Income this year as follow:s ales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $2,000,000 1,300,000 700,000 490,000 210,000 $ 60,000 (20,000) Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income 250,000 80,000 $170,000 Using the Indirect method, prepare a statement of cash flows for this year. (List any deduction In cash and cash outflows as negatlve amounts.) Lomax Company Statement...
Firm M is a mature company in a mature industry. Its annual net income and net...
Firm M is a mature company in a mature industry. Its annual net income and net cash flows are consistently high and stable. However, M's growth prospects are quite limited, so its capital budget is small relative to its net income. Firm N is a relatively new company in a new and growing industry. Its markets and products have not stabilized, so its annual operating income fluctuates considerably. However, N has substantial growth opportunities, and its capital budget is expected...
Income Statement For the Year Ended on December 31 J&H Corp. Industry Average Net sales $39,000,000 $48,...
Income Statement For the Year Ended on December 31 J&H Corp. Industry Average Net sales $39,000,000 $48,750,000 Operating costs, except depreciation and amortization 31,200,000 39,000,000 Depreciation and amortization 1,560,000 1,950,000 Total operating costs 32,760,000 40,950,000 Operating income (or EBIT) $6,240,000 $7,800,000 Less: Interest expense 624,000 1,170,000 Earnings before taxes (EBT) $5,616,000 $6,630,000 Less: Taxes (40 % ) 2,246,400 2,652,000 Net income $3,369,600 $3,978,000 information given to him, Jeffery submits a report on January 1 with some important calculations for management...
How can I figure out the 2017 net margin and return on equity when I only...
How can I figure out the 2017 net margin and return on equity when I only have percentages from the past two years to work with? [For 2017, my net income is $83,642.39, my gross revenue is $370,875] 2017 2016 2015 Industry Standard Quick Ratio 1.84 2.2 2.8 1.75 Gross Margin 0.59 0.55 0.7 0.7 Net Margin 0.22 0.32 0.24 Return on Equity 0.9 0.78 0.8
Data Table Specialty Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018 Industry Specialty Average Net Sales Revenue 777,000 100.0 % 522,144 Cost of Goods Sold 65.8 Gross Profit 254,856 34.2. Operating Expenses 163,170 19.7 Operating Income 91,686 14.5 3,885 Other Expenses 0.4 $ 87,801 14.1 % Net Income i Data Table Specialty Department Stores, Inc. Balance Sheet Compared with Industry Average December 31, 2018 Industry Specialty Average $ Current Assets Property, Plant, and Equipment,...
How does contribution margin differ from gross margin? VIRUS How will net income under variable costing compare to net income under absorption costing in the following three situations? Explain briefly the cause of any differences. (a) Units produced equal units sold (b) Units produced exceed units sold (c) Units produced are less than units sold
The company reported net Income this year as follow:s ales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $2,000,000 1,300,000 700,000 490,000 210,000 $ 60,000 (20,000) Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income 250,000 80,000 $170,000 Using the Indirect method, prepare a statement of cash flows for this year. (List any deduction In cash and cash outflows as negatlve amounts.) Lomax Company Statement...
Income Statement For the Year Ended on December 31 J&H Corp. Industry Average Net sales $39,000,000 $48,750,000 Operating costs, except depreciation and amortization 31,200,000 39,000,000 Depreciation and amortization 1,560,000 1,950,000 Total operating costs 32,760,000 40,950,000 Operating income (or EBIT) $6,240,000 $7,800,000 Less: Interest expense 624,000 1,170,000 Earnings before taxes (EBT) $5,616,000 $6,630,000 Less: Taxes (40 % ) 2,246,400 2,652,000 Net income $3,369,600 $3,978,000 information given to him, Jeffery submits a report on January 1 with some important calculations for management...
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