Year 2 Year 1 Sales $ 489,000 $ 393,000 Cost of goods sold 330,000 268,000 Gross...
| Year 2 | Year 1 | ||||||
| Sales | $ | 489,000 | $ | 393,000 | |||
| Cost of goods sold | 330,000 | 268,000 | |||||
| Gross profit | $ | 159,000 | $ | 125,000 | |||
| Operating expenses | 130,000 | 116,000 | |||||
| Net income | $ | 29,000 | $ | 9,000 | |||
a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.)
b. State whether the changes from year 1 to year 2 are favorable or unfavorable.
Homework Answers
| Year 2 | Year 1 | |
| Sales | 100% | 100% |
| Cost of Goods Sold | 67.48% | 68.19% |
| Gross profit | 32.52% | 31.81% |
| Operating expenses | 26.58% | 29.52% |
| Net income | 5.93% | 2.29% |
Sales - Favourable
Gross profit - Favourable
Add Answer to:
Year 2
Year 1
Sales
$
489,000
$
393,000
Cost of goods sold
330,000
268,000
Gross...
Year 2 Year 1 Sales $ 529,000 $ 420,000 Cost of goods sold 330,000 268,000...
Year 2 Year 1 Sales $ 529,000 $ 420,000 Cost of goods sold 330,000 268,000 Gross profit $ 199,000 $ 152,000 Operating expenses 130,000 116,000 Net income $ 69,000 $ 36,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes...
Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income...
Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income tax expense Net income Average investment in assets Average stockholders' equity $2,750, 000 1,781,00 375,000 282,000 45,000 84,000 159,000 1,800,000 895,000 Required a. From the information given: 1. Compute the inventory turnover. (Round your answer to 2 decimal places.) 2. Compute the accounts receivable turnover. (Round your answer to 2 decimal places 3. Compute the total operating expenses. 4 Compute the gross profit percentage....
Roy's Toys is a manufacturer of toys and children's products. The following are selected items appearing...
Roy's Toys is a manufacturer of toys and children's products. The following are selected items appearing in a recent balance sh 156 Cash and short-term investments Receivables Inventories Prepaid expenses and other current assets Total current liabilities Total liabilities Total stockholders' equity Dollar amounts stated above are in millions 0-1. Using the information above, compute the amounts of Roy's Toys quick assets. (Enter your answer in millions of dollars.) -2. Using the information above, compute the amounts of Roy's Toys...
Sales Cost of goods sold Sales of goods 2018 $ 80,000 63,900 2017 $75,000 48,900 2016...
Sales Cost of goods sold Sales of goods 2018 $ 80,000 63,900 2017 $75,000 48,900 2016 $57,000 33,600 2015 $56,000 35,100 2014 $50,000 30,000 Dollar amounts stated above are in thousands. a. Compute trend percentages for the above items taken from the financial statements of Lopez Plumbing over a five-year period. Treat 2014 as the base year. b. State whether the trends are favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required A Required...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold 365,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold 365,000 Gross margin 349,000 Selling and administrative expenses 217,000 Net operating income 132,000 Nonoperating items: Gain on sale of equipment 9,000 Income before taxes 141,000 Income taxes 56,400 Net income $ 84,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 33,400 $ 81,600 Accounts receivable 262,000 110,000 Inventory 319,000 276,000 Prepaid...
please expain how to get the nunbers for "flexible budget" column! thank you Problem 21-2A Preparation...
please expain how to get the nunbers for "flexible budget"
column! thank you
Problem 21-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. ints awarded Scored $3,000,000 eBook PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direet labor Machinery repairs (variable...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income $ 150,000 90,000 60,000 40,000 20,000 8,000 $ 12,000 The company's selling and administrative expense for Year 2 includes $7,500 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year i $30,000 $45,000 $ 6,000 Year 2 Current Assets Accounts receivable $ 40,000...
Exercise 14-2 Operating data for Navarro Corporation are presented below. Net sales Cost of goods sold...
Exercise 14-2 Operating data for Navarro Corporation are presented below. Net sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2017 $747,500 469,000 120,500 64,000 29,000 65,000 2016 $604,500 392,000 71,000 50,000 20,500 71,000 Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.3%.) NAVARRO CORPORATION Condensed Income Statements 2017 Percent 2016 Percent Amount Amount $604,500 Net sales $747,500 Cost of goods sold 469,000 392,000 Gross...
15. Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000...
15.
Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000 Gross Profit $94,000 $70,000 Income from operations $32,000 $30,000 Interest expense $2,000 $7,000 Net income $25,000 $18,000 Also known: Total assets in the prior year were $325,500, and in the current year are $345,500. What is the prior year's return on sales? 10.0% 14.6% 21.7% 11.4%
Mountain View's activities for the year included the following: Gross Sales 7,400,000 Cost of goods sold...
Mountain View's activities for the year included the following: Gross Sales 7,400,000 Cost of goods sold 3,100,000 Selling and administrative expenses 900,000 Adjustment for a prior year understatement of depreciation expense 112,000 Sales returns 71,000 Loss on operations of discontinued Segment A 411,000 Royalty income from infringement settlement 800,000 Unrealized loss on equity securities 41,000 Gain on disposal of assets of discontinued business Segment A 375,000 Extraordinary loss from hail storm 143,000 Gain on early extinguishment of convertible bonds 201,000...
Sales (all on credit) Cost of goods sold Average inventory Average accounts receivable Interest expense Income tax expense Net income Average investment in assets Average stockholders' equity $2,750, 000 1,781,00 375,000 282,000 45,000 84,000 159,000 1,800,000 895,000 Required a. From the information given: 1. Compute the inventory turnover. (Round your answer to 2 decimal places.) 2. Compute the accounts receivable turnover. (Round your answer to 2 decimal places 3. Compute the total operating expenses. 4 Compute the gross profit percentage....
Roy's Toys is a manufacturer of toys and children's products. The following are selected items appearing in a recent balance sh 156 Cash and short-term investments Receivables Inventories Prepaid expenses and other current assets Total current liabilities Total liabilities Total stockholders' equity Dollar amounts stated above are in millions 0-1. Using the information above, compute the amounts of Roy's Toys quick assets. (Enter your answer in millions of dollars.) -2. Using the information above, compute the amounts of Roy's Toys...
Sales Cost of goods sold Sales of goods 2018 $ 80,000 63,900 2017 $75,000 48,900 2016 $57,000 33,600 2015 $56,000 35,100 2014 $50,000 30,000 Dollar amounts stated above are in thousands. a. Compute trend percentages for the above items taken from the financial statements of Lopez Plumbing over a five-year period. Treat 2014 as the base year. b. State whether the trends are favorable or unfavorable. Complete this question by entering your answers in the tabs below. Required A Required...
please expain how to get the nunbers for "flexible budget"
column! thank you
Problem 21-2A Preparation and analysis of a flexible budget performance report LO P1, P2, A1 Phoenix Company's 2017 master budget included the following fixed budget report. It is based on an expected production and sales volume of 15,000 units. ints awarded Scored $3,000,000 eBook PHOENIX COMPANY Fixed Budget Report For Year Ended December 31, 2017 Sales Cost of goods sold Direct materials Direet labor Machinery repairs (variable...
Wiley Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net income $ 150,000 90,000 60,000 40,000 20,000 8,000 $ 12,000 The company's selling and administrative expense for Year 2 includes $7,500 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year i $30,000 $45,000 $ 6,000 Year 2 Current Assets Accounts receivable $ 40,000...
Exercise 14-2 Operating data for Navarro Corporation are presented below. Net sales Cost of goods sold Selling expenses Administrative expenses Income tax expense Net income 2017 $747,500 469,000 120,500 64,000 29,000 65,000 2016 $604,500 392,000 71,000 50,000 20,500 71,000 Prepare a schedule showing a vertical analysis for 2017 and 2016. (Round percentages to 1 decimal place, e.g. 12.3%.) NAVARRO CORPORATION Condensed Income Statements 2017 Percent 2016 Percent Amount Amount $604,500 Net sales $747,500 Cost of goods sold 469,000 392,000 Gross...
15.
Account Current year Prior year Net sales $219,000 $180,000 Cost of Goods Sold $125,000 $110,000 Gross Profit $94,000 $70,000 Income from operations $32,000 $30,000 Interest expense $2,000 $7,000 Net income $25,000 $18,000 Also known: Total assets in the prior year were $325,500, and in the current year are $345,500. What is the prior year's return on sales? 10.0% 14.6% 21.7% 11.4%
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