Homework Answers
|
Atlanta |
Boston |
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|
Net sales (A) |
$34,600 |
$89,800 |
|
|
Cost of goods sold (B) |
$16,410 |
$62,380 |
|
|
Gross margin (C=A-B) |
$18,190 |
$27,420 |
|
|
Less: Operating expenses |
|||
|
Selling and admin expenses (D) |
$11,960 |
$20,880 |
|
|
Net income (E=C-D) |
$6,230 |
$6,540 |
|
|
1 |
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|
Ans |
Gross margin ratio (Gross margin/Net sales) (C/A) |
53% |
31% |
|
Return on sales (Net income/Net sales) (E/A) |
18% |
7% |
|
|
2 |
Atlanta company has High end retailer base, since the gross margin and return on sales ratios are higher for Atlanta product |
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|
Ans |
Atlanta |
||
|
3 |
Atlanta |
Boston |
|
|
Equity (A) |
17600 |
21800 |
|
|
Net income (B) |
$6,230 |
$6,540 |
|
|
Return on investment (C=B/A) |
35% |
30% |
|
|
Ans |
Most profitable business is Atlanta Since higher Return on investment ratio |
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|
Atlanta |
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The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta $ 36,100 16.670 19.30 Bonton. $ 88,600 64,520) Net sales Cost of goods sold Gross margin Less Operating exp. Selling and admin. exp. Net income (12,180) 7,250 115,866) 8,214 $ $ "All figures are reported in thousands of dollars Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston (Round your answers to the nearest whole number.)...
The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company Net Bales Coat of goods sold Gross margin Less: Operating exp. Selling and admin. exp. Net income Atlanta $ 210,000 (126, 000) 84,000 Boston $ 230,000 (179,400) 50, 600 (67,200) (32, 200) $ 16,800 $ 18,400 "All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston a-2. One of the...
The following income statements were drawn from the annual reports of the Atlanta Company and the...
The following income statements were drawn from the annual
reports of the Atlanta Company and the Boston Company:
*All figures are reported in thousands of dollars.
Required
*All figures are reported in thousands of dollars.
a-1. Compute the gross margin percentages and
return-on-sales ratios of Atlanta and Boston. (Round your
answers to the nearest whole number.)
a-2. One of the companies is a high-end retailer that
operates in exclusive shopping malls. The other operates discount
stores located in low-cost, standalone...
The following income statements were drawn from the annual reports of Toner Sales Company: 2018* $...
The following income statements were drawn from the annual reports of Toner Sales Company: 2018* $ 426,600 (281,556) 145, 044 2019* $ 521,600 (292,096) 229,504 Net sales Cost of goods sold Gross margin Less: Operating expense Selling and administrative expenses Net Income (68,256) 76,788 (83,456) $ 146,048 $ *All dollar amounts are reported in thousands. The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising....
The following income statement was drawn from the records of Rundle Company, a merchandising firm: RUNDLE...
The following income statement was drawn from the records of Rundle Company, a merchandising firm: RUNDLE COMPANY Incone Statement Sales revenue (4,500 units $169) cost of goods sold (4,500 units x $84) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units $2) $ 760,500 (378,000) 382,500 (38,025) (89,000) (31,000) (46,000) (9,000) s 169,475 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of...
The following income statement was drawn from the records of Campbell Company, a merchandising firm: CAMPBELL COM...
The following income statement was drawn from the records of Campbell Company, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31, 2018 $1,072,500 (559,000) 513,500 (53,625) (84,000) (35,000) (48,000) Sales revenue (6,500 units x $165) Cost of goods sold (6,500 units x $86) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $2) (13,000) 279,875 Net income Required a. Reconstruct the income statement using...
The following income statement was drawn from the records of Gibson Company, a merchandising firm: GIBSON COMPANY Incom...
The following income statement was drawn from the records of Gibson Company, a merchandising firm: GIBSON COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (7,000 units X $162) $1,134,000 Cost of goods sold (7,000 units * $85) (595,000 Gross margin 539,000 Sales commissions (108 of sales) (113,400) Administrative salaries expense (87,000) Advertising expense (37,000) Depreciation expense 41,000) Shipping and handling expenses (7,000 units X $2) Net income 246,600 Required a. Reconstruct the income statement using the...
The following income statement was drawn from the records of Walton Company, a merchandising firm: WALTON...
The following income statement was drawn from the records of Walton Company, a merchandising firm: WALTON COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,500 units * $170) Cost of goods sold (6,500 units X $88) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units * $5) Net income $1,105,000 (572,000) 533,000 (110,500) (88,000) (35,000) (46,000) (32,500) $ 221,000 Required a. Reconstruct the income...
The following income statement was drawn from the records of Perez Company, a merchandising firm: PEREZ...
The following income statement was drawn from the records of Perez Company, a merchandising firm: PEREZ COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $166) Cost of goods sold (5,500 units X $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,500 units X $2) Net income $ 913,000 (451, 000) 462,000 (45,650) (84,000) (33,000) (46,000) (11,000) $ 242, 350 Required a....
the following income statement was drawn from the records of Finch Company, a merchandising firm: Chu...
the following income statement was drawn from the records of Finch Company, a merchandising firm: Chu FINCH COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (7,000 units x $168) Cost of goods sold (7,000 units * $83) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,000 units * $3) Net income $1,176,000 (581, 000) 595, een (117,608) (82,280) (39,000) (44,000) (21,800) 291,400 Required a. Reconstruct the...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company: Atlanta $ 36,100 16.670 19.30 Bonton. $ 88,600 64,520) Net sales Cost of goods sold Gross margin Less Operating exp. Selling and admin. exp. Net income (12,180) 7,250 115,866) 8,214 $ $ "All figures are reported in thousands of dollars Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston (Round your answers to the nearest whole number.)...
The following income statements were drawn from the annual reports of the Atlanta Company and the Boston Company Net Bales Coat of goods sold Gross margin Less: Operating exp. Selling and admin. exp. Net income Atlanta $ 210,000 (126, 000) 84,000 Boston $ 230,000 (179,400) 50, 600 (67,200) (32, 200) $ 16,800 $ 18,400 "All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Atlanta and Boston a-2. One of the...
The following income statements were drawn from the annual
reports of the Atlanta Company and the Boston Company:
*All figures are reported in thousands of dollars.
Required
*All figures are reported in thousands of dollars.
a-1. Compute the gross margin percentages and
return-on-sales ratios of Atlanta and Boston. (Round your
answers to the nearest whole number.)
a-2. One of the companies is a high-end retailer that
operates in exclusive shopping malls. The other operates discount
stores located in low-cost, standalone...
The following income statements were drawn from the annual reports of Toner Sales Company: 2018* $ 426,600 (281,556) 145, 044 2019* $ 521,600 (292,096) 229,504 Net sales Cost of goods sold Gross margin Less: Operating expense Selling and administrative expenses Net Income (68,256) 76,788 (83,456) $ 146,048 $ *All dollar amounts are reported in thousands. The president's message in the company's annual report stated that the company had implemented a strategy to increase market share by spending more on advertising....
The following income statement was drawn from the records of Rundle Company, a merchandising firm: RUNDLE COMPANY Incone Statement Sales revenue (4,500 units $169) cost of goods sold (4,500 units x $84) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (4,500 units $2) $ 760,500 (378,000) 382,500 (38,025) (89,000) (31,000) (46,000) (9,000) s 169,475 Required a. Reconstruct the income statement using the contribution margin format. b. Calculate the magnitude of...
The following income statement was drawn from the records of Campbell Company, a merchandising firm: CAMPBELL COMPANY Income Statement For the Year Ended December 31, 2018 $1,072,500 (559,000) 513,500 (53,625) (84,000) (35,000) (48,000) Sales revenue (6,500 units x $165) Cost of goods sold (6,500 units x $86) Gross margin Sales commissions (58 of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units x $2) (13,000) 279,875 Net income Required a. Reconstruct the income statement using...
The following income statement was drawn from the records of Gibson Company, a merchandising firm: GIBSON COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (7,000 units X $162) $1,134,000 Cost of goods sold (7,000 units * $85) (595,000 Gross margin 539,000 Sales commissions (108 of sales) (113,400) Administrative salaries expense (87,000) Advertising expense (37,000) Depreciation expense 41,000) Shipping and handling expenses (7,000 units X $2) Net income 246,600 Required a. Reconstruct the income statement using the...
The following income statement was drawn from the records of Walton Company, a merchandising firm: WALTON COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (6,500 units * $170) Cost of goods sold (6,500 units X $88) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (6,500 units * $5) Net income $1,105,000 (572,000) 533,000 (110,500) (88,000) (35,000) (46,000) (32,500) $ 221,000 Required a. Reconstruct the income...
The following income statement was drawn from the records of Perez Company, a merchandising firm: PEREZ COMPANY Income Statement For the Year Ended December 31, Year 1 Sales revenue (5,500 units x $166) Cost of goods sold (5,500 units X $82) Gross margin Sales commissions (5% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (5,500 units X $2) Net income $ 913,000 (451, 000) 462,000 (45,650) (84,000) (33,000) (46,000) (11,000) $ 242, 350 Required a....
the following income statement was drawn from the records of Finch Company, a merchandising firm: Chu FINCH COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue (7,000 units x $168) Cost of goods sold (7,000 units * $83) Gross margin Sales commissions (10% of sales) Administrative salaries expense Advertising expense Depreciation expense Shipping and handling expenses (7,000 units * $3) Net income $1,176,000 (581, 000) 595, een (117,608) (82,280) (39,000) (44,000) (21,800) 291,400 Required a. Reconstruct the...
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