Homework Answers
ANSWER A
COMMON SIZE INCOME STATEMENT
| MEMPHIS | % | BILLINGS | % | |
| SALES | 1002400 | 100 | 1220200 | 100 |
| COST OF GOOD SOLD | 681200 | 68 | 765200 | 62.7 |
| GROSS PROFIT | 321200 | 32 | 455000 | 37.3 |
| OPERTING EXPENSE | 254600 | 25.4 | 322000 | 26.4 |
| NET PROFIT | 66600 | 6.6 | 133000 | 10.9 |
ANSWER B
| MEMPHIS | BILLINGS | |
| RETURN ON ASSET=NET INCOME/TOTAL ASSETS*100% | ROA=66600/1340000*100%=4.97% | ROA=133000/1280000*100%=10.39% |
| RETURN ON EQUITY=NET INCOME/EQUITY*100% | ROE=66600/370000*100%=18% | ROE=133000/380000*100%=35% |
ANSWER C
BILLINGS COMPANY is more profitable from shareholder's perspective this is we can tell from by looking at ROE . ROE of billings co. is more than Memphis Co.
ANSWER D
HIGH END RETAILER-BILLINGS
DISCOUNT STORE-MEMPHIS
This is we can tell from there Net profit retailer store have high profit than a discount store.
Add Answer to:
Exercise 4-19A (Algo) Using common size statements and ratlos to make comparisons LO 4-8 The following...
k -Chapter 36 Saved Exercise 3-18 Using common size statements and ratlos to make comparisons LO...
k -Chapter 36 Saved Exercise 3-18 Using common size statements and ratlos to make comparisons LO 3-5 At the end of 2018 the following information is available for Billings and Phoneix companies Billings Phoneix 53,000,e00 $3,00e Cost of goods sold 1,80,e00 2,100 780 3,758,880 3,758 Stockholders' equity 1,8e0,8e0 1,200 Sales Operating expenses Total assets 960,800 Required a. Prepare common size income statements for each company b. One company is a high-end retailer. and the other operates a discount store. Which...
The following information is available for the Memphis and Billings companies: Required a. Prepare a common...
The following information is available for the Memphis and
Billings companies:
Required
a. Prepare a common size income statement for each
company.
b. Compute the return on assets and return on
equity for each company.
c. Which company is more profitable from the
stockholders’ perspective?
d. One company is a high-end retailer, and the
other operates a discount store. Which is the discounter?
Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,240,960 800, 480 338, 240...
The following information is available for the Memphis and Billings companies: $ Sales Cost of goods...
The following information is available for the Memphis and Billings companies: $ Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis 946,400 654,200 244,600 1,140,000 340,000 Billings $1,147,200 732,200 301,000 1,150,000 380,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates...
The following information is available for the Memphis and Billings companies: Sales Cost of goods sold...
The following information is available for the Memphis and Billings companies: Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,500,000 1,050,000 350,000 1,800,000 720,000 Billings $1,500,000 1,125,000 250,000 1,800,000 720,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates a...
Exercise 13-4 Computing and interpreting common-size percents LO P2 Express the following comparative income statements in...
Exercise 13-4 Computing and interpreting common-size percents LO P2 Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Reason for Income Statement Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year % $ % $ 735,000 $ 645,000 562,700...
Exercise 13-4 Computing and interpreting common-size percents LO P2 Express the following comparative income statements in...
Exercise 13-4 Computing and interpreting common-size percents LO P2 Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Reason for Income Decline in Net Statement Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ $ % Sales $ 750,000 $ 665,000...
Exercise 1-19A Preparing financial statements LO 1-7, 1-8, Dakota Company experienced the following events during 2018:...
Exercise 1-19A Preparing financial statements LO 1-7, 1-8, Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2...
Required information Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following...
Required information Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below.) Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 494,327 $ 378,695 $ 262,800 Cost of goods sold 297,585 238, 199168,192 Gross profit 196, 742 140,496 94,608 Selling expenses 70,194 52,260 34,690 Administrative expenses 44,489 33, 325 21,812 Total...
Part 2 of 4 Required information Problem 17-2A Ratios, common-size statements, and trend percents LO P1,...
Part 2 of 4 Required information Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below.) Selected comparative financial statements of Korbin Company follow. points eBook KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $414,761 $317,741 $220,500 Cost of goods sold 249,686 201,766 141, 120 Gross profit 165,075 115,975 79,380 Selling expenses 58,896 43,848 29,106 Administrative expenses 37,328 27,961...
Che Express the following comparative income statements in common-size percents. Using the common-size percentages, which item...
Che Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) the GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ % $ Sales $ 795,000 $ 690,000 Cost of goods sold 568,100 286,600 Gross...
k -Chapter 36 Saved Exercise 3-18 Using common size statements and ratlos to make comparisons LO 3-5 At the end of 2018 the following information is available for Billings and Phoneix companies Billings Phoneix 53,000,e00 $3,00e Cost of goods sold 1,80,e00 2,100 780 3,758,880 3,758 Stockholders' equity 1,8e0,8e0 1,200 Sales Operating expenses Total assets 960,800 Required a. Prepare common size income statements for each company b. One company is a high-end retailer. and the other operates a discount store. Which...
The following information is available for the Memphis and
Billings companies:
Required
a. Prepare a common size income statement for each
company.
b. Compute the return on assets and return on
equity for each company.
c. Which company is more profitable from the
stockholders’ perspective?
d. One company is a high-end retailer, and the
other operates a discount store. Which is the discounter?
Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,240,960 800, 480 338, 240...
The following information is available for the Memphis and Billings companies: $ Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis 946,400 654,200 244,600 1,140,000 340,000 Billings $1,147,200 732,200 301,000 1,150,000 380,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates...
The following information is available for the Memphis and Billings companies: Sales Cost of goods sold Operating expenses Total assets Stockholders' equity Memphis $1,500,000 1,050,000 350,000 1,800,000 720,000 Billings $1,500,000 1,125,000 250,000 1,800,000 720,000 Required a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable from the stockholders' perspective? d. One company is a high-end retailer, and the other operates a...
Exercise 13-4 Computing and interpreting common-size percents LO P2 Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Reason for Income Statement Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year % $ % $ 735,000 $ 645,000 562,700...
Exercise 13-4 Computing and interpreting common-size percents LO P2 Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Reason for Income Decline in Net Statement Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ $ % Sales $ 750,000 $ 665,000...
Exercise 1-19A Preparing financial statements LO 1-7, 1-8, Dakota Company experienced the following events during 2018: 1. Acquired $25,000 cash from the issue of common stock. 2. Paid $20,000 cash to purchase land. 3. Borrowed $20,000 cash. 4. Provided services for $60,000 cash. 5. Paid $2,000 cash for utilities expense. 6. Paid $40,000 cash for other operating expenses. 7. Paid a $5,000 cash dividend to the stockholders. 8. Determined that the market value of the land purchased in Event 2...
Required information Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below.) Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $ 494,327 $ 378,695 $ 262,800 Cost of goods sold 297,585 238, 199168,192 Gross profit 196, 742 140,496 94,608 Selling expenses 70,194 52,260 34,690 Administrative expenses 44,489 33, 325 21,812 Total...
Part 2 of 4 Required information Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3 [The following information applies to the questions displayed below.) Selected comparative financial statements of Korbin Company follow. points eBook KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales $414,761 $317,741 $220,500 Cost of goods sold 249,686 201,766 141, 120 Gross profit 165,075 115,975 79,380 Selling expenses 58,896 43,848 29,106 Administrative expenses 37,328 27,961...
Che Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) the GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ % $ Sales $ 795,000 $ 690,000 Cost of goods sold 568,100 286,600 Gross...
Most questions answered within 3 hours.
-
Which of the following is a provision of
NAFTA?
A.
Common accounting rules
B.
Adding new...
asked 8 minutes ago -
Need to do in Python? Can do in Javascript but not in Python
Write a function...
asked 23 minutes ago -
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 1 hour ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 3 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 5 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 6 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 7 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 8 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 7 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago