The current year's amount of net income is 9% larger than that of the preceding year....
The current year's amount of net income is 9% larger than that of the preceding year. Does this indicate an improved operating performance? Discuss.
Homework Answers
Answer:
Yes, this indicates an improved operating performance.
Net Income is one of the measures of operating performance. Increase of 9% in net income does indicate improved operating performance.
Net profit can increase through improved performance.
Increase of 9% in net income may be result of:
1. Growth in sales with net profit margin as % remaining same.
2. Growth in sales with costs growing but with % increases in costs are lesser than that of sales
3. Sales remaining same but net income improves through better management of costs resulting in decrease in costs
All of above are indicators of improved operating performance.
Add Answer to:
The current year's amount of net income is 9% larger than that
of the preceding year....
The net income reported on the income statement for the current year was $334,100. Depreciation recorded...
The net income reported on the income statement for the current year was $334,100. Depreciation recorded on equipment and a building amounted to $101,710 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $90,280 $96,010 Accounts receivable (net) 111,780 118,690 Inventories 223,470 206,830 Prepaid expenses 12,870 14,850 Accounts payable (merchandise creditors) 96,330 103,900 Salaries payable 15,720 13,840 Required: A....
The net income reported on the income statement for the current year was $318,700. Depreciation recorded...
The net income reported on the income statement for the current year was $318,700. Depreciation recorded on equipment and a building amounted to $93,980 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $90,370 $95,280 Accounts receivable (net) 111,660 118,570 Inventories 232,780 203,250 Prepaid expenses 12,000 15,310 Accounts payable (merchandise creditors) 96,420 104,940 Salaries payable 15,310 13,420 Required: A....
O Changes in current operating assets and liabilities-indirect method Instructions Amount Descriptions Reconciliation of Net Income...
O Changes in current operating assets and liabilities-indirect method Instructions Amount Descriptions Reconciliation of Net Income Instructions Huluduey Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $32,350 $27,670 Inventory 18,640 15,960 Accounts payable 15,940 14,650 Dividends payable 51,460 48,000 Adjust net income of $213,480 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list...
16.3 #5 The net income reported on the income statement for the current year was $346,400....
16.3 #5 The net income reported on the income statement for the current year was $346,400. Depreciation recorded on equipment and a building amounted to $99,330 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $90,570 $96,530 Accounts receivable (net) 111,490 119,020 Inventories 222,910 208,840 Prepaid expenses 13,500 14,540 Accounts payable (merchandise creditors) 96,260 103,590 Salaries payable 15,150 12,980...
The net income reported on an income statement for the current year was $63,000. Depreciation recorded...
The net income reported on an income statement for the current year was $63,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the Cash flows from operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments....
The net income reported on the income statement for the current year was $232,500. Depreciation recorded...
The net income reported on the income statement for the current year was $232,500. Depreciation recorded on equipment and a building amounted to $69,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $63,940 $66,500 Accounts receivable (net) 81,080 82,060 Inventories 159,850 141,380 Prepaid expenses 8,890 9,380 Accounts payable (merchandise creditors) 71,420 74,210 Salaries payable 10,290 9,240 a. Prepare...
QUESTION 2 On this year's income statement Norton Company reported net income of $10.000. During the...
QUESTION 2 On this year's income statement Norton Company reported net income of $10.000. During the year, accounts receivable changed by $549. Inventory changed by 5-3.377, accounts payable changed by 5-1,596, and depreciation of $17.576 was recorded. Using only this information what was the amount of net cash flow from operating activities reported using the indirect method?
3. What amount should be reported on the current year's income statement for Insurance Expense?
E4-5 (Static) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following:a. A two-year insurance premium of $4,800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1 .b. At December 31 of the...
What is the firm's current year net profit margin? What is the firm's net income for...
What is the firm's current year net profit margin?
What is the firm's net income for the current year
What is the firm's current year operating profit margin?
What is the firm's current year gross profit margin?
What is the entry for the current year's interest expense on a
common sized income statement?
??? unanswered not submitted Attempts Remaining: Infinity Category Prior Year Current Year Accounts payable ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000...
On the basis of the following data for Breach Co. for the current and preceding years...
On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000. Current Year Prior Year Assets Cash Accounts Receivable (net) $74,000...
O Changes in current operating assets and liabilities-indirect method Instructions Amount Descriptions Reconciliation of Net Income Instructions Huluduey Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $32,350 $27,670 Inventory 18,640 15,960 Accounts payable 15,940 14,650 Dividends payable 51,460 48,000 Adjust net income of $213,480 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. Refer to the Amount Descriptions list...
The net income reported on an income statement for the current year was $63,000. Depreciation recorded on fixed assets for the year was $24,000. Balances of the current asset and current liability accounts at the end and beginning of the year are listed below. Prepare the Cash flows from operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments....
QUESTION 2 On this year's income statement Norton Company reported net income of $10.000. During the year, accounts receivable changed by $549. Inventory changed by 5-3.377, accounts payable changed by 5-1,596, and depreciation of $17.576 was recorded. Using only this information what was the amount of net cash flow from operating activities reported using the indirect method?
E4-5 (Static) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following:a. A two-year insurance premium of $4,800 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1 .b. At December 31 of the...
What is the firm's current year net profit margin?
What is the firm's net income for the current year
What is the firm's current year operating profit margin?
What is the firm's current year gross profit margin?
What is the entry for the current year's interest expense on a
common sized income statement?
??? unanswered not submitted Attempts Remaining: Infinity Category Prior Year Current Year Accounts payable ??? Accounts receivable 320,715 397,400 Accruals 40,500 33,750 Additional paid in capital 500,000...
On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000. Cash dividends declared and paid were $13,000. Current Year Prior Year Assets Cash Accounts Receivable (net) $74,000...
Most questions answered within 3 hours.
-
11) What would be the pH of 100.0 mL of a solution that is 0.040
M...
asked 14 minutes ago -
A largely aquatic division of Kingdom Fungi, rarely harmful to
humans, often found as mold/mildew, &...
asked 17 minutes ago -
A mixture of nitrogen and carbon
dioxide gases, in a 9.86 L flask at
40 °C,...
asked 33 minutes ago -
just another way of saying good target marketing and
understanding customer needs? Why or why not?
asked 1 hour ago -
Consider the quantum number sets listed below.
What is the name of the smallest element for...
asked 3 hours ago -
In python,write a function nameSet(first, last) that takes a
person's first and last names as input,...
asked 5 hours ago -
How do you think we should value management? Specifically how
might we try to determine MRPL...
asked 5 hours ago -
Suppose the Central Bank of Turkey starts to pay
interest on reserves. Under what circumstances this...
asked 5 hours ago -
For Bergson the concept of Being contains less reality than does
the concept of Becoming. True...
asked 6 hours ago -
What is the hydroxide ion concentration, [OH-], in a solution
with a hydronium ion concentration, [H3O+]...
asked 6 hours ago -
What species is the reducing agent in the following
equation?
Mg(s) + 2HCl (aq) --> MgCl2(aq)...
asked 6 hours ago -
A 50g ice cube is taken out of a freezer at 0 degrees Celsius
and put...
asked 8 hours ago