Homework Answers
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Merkitch Company |
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Comparative income statements |
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For the year ended December 31,2016 and 2015 |
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Increase (Decrease) |
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2016 |
2015 |
Amount of change |
Percentage |
|
|
Net sales |
$ 32,76,800.00 |
$ 31,46,400.00 |
$ 1,30,400.00 |
4.14% |
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Cost of goods osld |
$ 20,88,800.00 |
$ 20,08,400.00 |
$ 80,400.00 |
4.00% |
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Gross profit |
$ 11,88,000.00 |
$ 11,38,000.00 |
$ 50,000.00 |
4.39% |
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Operating expenses |
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Selling expenses'expenses' |
$ 4,76,800.00 |
$ 5,18,000.00 |
$ (41,200.00) |
-7.95% |
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Administrative expenses |
$ 4,47,200.00 |
$ 4,23,200.00 |
$ 24,000.00 |
5.67% |
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Total Operating expenses' |
$ 9,24,000.00 |
$ 9,41,200.00 |
$ (17,200.00) |
-1.83% |
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Net operating income |
$ 2,64,000.00 |
$ 1,96,800.00 |
$ 67,200.00 |
34.15% |
|
Interest expense |
$ 65,600.00 |
$ 39,200.00 |
$ 26,400.00 |
67.35% |
|
Income before income taxes |
$ 1,98,400.00 |
$ 1,57,600.00 |
$ 40,800.00 |
25.89% |
|
Income tax expense |
$ 62,400.00 |
$ 56,800.00 |
$ 5,600.00 |
9.86% |
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Net income |
$ 1,36,000.00 |
$ 1,00,800.00 |
$ 35,200.00 |
34.92% |
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Merkitch Company |
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Comparative Balance Sheet |
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As of December 31,2016 and 2015 |
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Increase (Decrease) |
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2016 |
2015 |
Amount of change |
Percentage |
|
|
Assets |
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Cash |
$ 81,200.00 |
$ 40,800.00 |
$ 40,400.00 |
99.02% |
|
Accounts receivables |
$ 2,35,600.00 |
$ 2,29,200.00 |
$ 6,400.00 |
2.79% |
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Inventory |
$ 5,74,800.00 |
$ 5,94,800.00 |
$ (20,000.00) |
-3.36% |
|
Property plant and equipment |
$ 7,50,000.00 |
$ 7,20,000.00 |
$ 30,000.00 |
4.17% |
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Total Assets |
$ 16,41,600.00 |
$ 15,84,800.00 |
$ 56,800.00 |
3.58% |
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Liabilities and Stockholder's equity |
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Accounts payable |
$ 2,67,600.00 |
$ 4,77,200.00 |
$ (2,09,600.00) |
-43.92% |
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Notes p[ayable |
$ 2,00,000.00 |
$ 4,00,000.00 |
$ (2,00,000.00) |
-50.00% |
|
Bonds payable |
$ 4,00,000.00 |
$ - |
$ 4,00,000.00 |
#DIV/0! |
|
Common stock |
$ 4,00,000.00 |
$ 4,00,000.00 |
$ - |
0.00% |
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Retained earmings |
$ 3,74,000.00 |
$ 3,07,600.00 |
$ 66,400.00 |
21.59% |
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Total Liabilities and Stockholder's equity |
$ 16,41,600.00 |
$ 15,84,800.00 |
$ 56,800.00 |
3.58% |
Remark
The net income of the company has substancially increased in year 2016. The reason for increase in income is not because of increase in revenue because revenue has increased only by 4% but due to decrease in selling expenses.
Company has also accepted loan in bonds and repaid its notes payables by 50%
Another solution is also given with only 1 decimal place in % change
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Merkitch Company |
||||
|
Comparative income statements |
||||
|
For the year ended December 31,2016 and 2015 |
||||
|
Increase (Decrease) |
||||
|
2016 |
2015 |
Amount of change |
Percentage |
|
|
Net sales |
$ 32,76,800.00 |
$ 31,46,400.00 |
$ 1,30,400.00 |
4.1% |
|
Cost of goods osld |
$ 20,88,800.00 |
$ 20,08,400.00 |
$ 80,400.00 |
4.0% |
|
Gross profit |
$ 11,88,000.00 |
$ 11,38,000.00 |
$ 50,000.00 |
4.4% |
|
Operating expenses |
||||
|
Selling expenses'expenses' |
$ 4,76,800.00 |
$ 5,18,000.00 |
$ (41,200.00) |
-8.0% |
|
Administrative expenses |
$ 4,47,200.00 |
$ 4,23,200.00 |
$ 24,000.00 |
5.7% |
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Total Operating expenses' |
$ 9,24,000.00 |
$ 9,41,200.00 |
$ (17,200.00) |
-1.8% |
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Net operating income |
$ 2,64,000.00 |
$ 1,96,800.00 |
$ 67,200.00 |
34.1% |
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Interest expense |
$ 65,600.00 |
$ 39,200.00 |
$ 26,400.00 |
67.3% |
|
Income before income taxes |
$ 1,98,400.00 |
$ 1,57,600.00 |
$ 40,800.00 |
25.9% |
|
Income tax expense |
$ 62,400.00 |
$ 56,800.00 |
$ 5,600.00 |
9.9% |
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Net income |
$ 1,36,000.00 |
$ 1,00,800.00 |
$ 35,200.00 |
34.9% |
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Merkitch Company |
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|
Comparative Balance Sheet |
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|
As of December 31,2016 and 2015 |
||||
|
Increase (Decrease) |
||||
|
2016 |
2015 |
Amount of change |
Percentage |
|
|
Assets |
||||
|
Cash |
$ 81,200.00 |
$ 40,800.00 |
$ 40,400.00 |
99.0% |
|
Accounts receivables |
$ 2,35,600.00 |
$ 2,29,200.00 |
$ 6,400.00 |
2.8% |
|
Inventory |
$ 5,74,800.00 |
$ 5,94,800.00 |
$ (20,000.00) |
-3.4% |
|
Property plant and equipment |
$ 7,50,000.00 |
$ 7,20,000.00 |
$ 30,000.00 |
4.2% |
|
Total Assets |
$ 16,41,600.00 |
$ 15,84,800.00 |
$ 56,800.00 |
3.6% |
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Liabilities and Stockholder's equity |
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Accounts payable |
$ 2,67,600.00 |
$ 4,77,200.00 |
$ (2,09,600.00) |
-43.9% |
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Notes p[ayable |
$ 2,00,000.00 |
$ 4,00,000.00 |
$ (2,00,000.00) |
-50.0% |
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Bonds payable |
$ 4,00,000.00 |
$ - |
$ 4,00,000.00 |
#DIV/0! |
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Common stock |
$ 4,00,000.00 |
$ 4,00,000.00 |
$ - |
0.0% |
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Retained earmings |
$ 3,74,000.00 |
$ 3,07,600.00 |
$ 66,400.00 |
21.6% |
|
Total Liabilities and Stockholder's equity |
$ 16,41,600.00 |
$ 15,84,800.00 |
$ 56,800.00 |
3.6% |
Add Answer to:
Merkitch Company's condensed comparative income statements and comparative balance sheets for 2016 and 2015 follow. Merkitch...
Answer question 2 and 3 ty （2. vertical analysis 3. simple explaination） Chapter 16 Homework Problem...
Answer question 2 and 3 ty （2. vertical analysis 3. simple
explaination）
Chapter 16 Homework Problem erkitch Company's condensed comparative income statements and comparative balance sheets for 2016 and 2015 follow Merkitch Company Comparative Income Statements For the Years Ended December 31, 2016 and 2015 2016 2015 Net sales Cost of goods sold Gross profit Operating expenses $3,276,800 2,088,800 $1,188,000 $3,146,400 2,008,400 $1,138,000 $518,000 423,200 $924,000$941,200 $196,800 39,200 $157,600 56,800 100,800 $2.52 $476,800 447,200 Selling expenses Administrative expenses Total operating...
1-Complete vertical analysis by using the structure in the upper segment below and horizontal analysis in...
1-Complete vertical analysis by using the structure in the upper
segment below and horizontal analysis in the lower segment
below.
2-Briefly comment on the trend in the revenues and expenses
below the horizontal analysis segment.
Comparative Consolidated Income Statement For the Year Ended December 31, 2018 12/31/2018 Amount S 3.276,800 $ 2,088,800 S 1,188,000 12/31/2017 Amount S 3.146.400 S 2,008.400 S 1,138,000 Percent Percent Net Sales Cost of Goods Sold Gross Profit Operating expenses: Selling expenses Administrative expenses Total operating...
Simon Company's year-end balance sheets follow At December 31 Assets 2017 2016 2015 as Accounts receivable,...
Simon Company's year-end balance sheets follow At December 31 Assets 2017 2016 2015 as Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 31,200 34,200 $ 36,700 52,800 54,200 4,305 291,369 278,627 231,995 $525,000 $470,000 $ 380,000 64,300 103,556 83,200 9,673 88,700 10,175 Liabilities and Equity Accounts payable $133,340 81,019 $ 48,655 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 83,980 162,500 162,500162,500 84,865...
Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable,...
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The comparative balance sheets for 2016 and 2015 and the income statement for 2016 are given belo...
The comparative balance sheets for 2016 and 2015 and the income statement for 2016 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets Decernber 31, 2016 and 2015 $ in millions) 2016 2015 Assets S 118 $ 82 196 191 Accounts receivable Investment revenue receivable 207 Prepaid insurance Long-term investment 160 199 413 (98) (122) 126 151 402 Buildings and equipment $1,236 $1,085 Liabilities Accounts payable Salaries payable Bond...
Below are the comparative balance sheets for 2016 and 2017 as well as the income statement...
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Simon Company's year-end balance sheets follow. BERTATE 2017 2016 2015 At December 31 Assets Cash Accounts...
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Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable,...
Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 25,138 $ 29,084 $ 75,087 53,520 90,668 70,029 8,13 7,871 235,849 214,285 $ 434,755 $ 374,789 $ 31,223 41,227 43,046 3,335 187,369 306,200 $ 107,171 $ 62,706 $ aces...
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Answer question 2 and 3 ty （2. vertical analysis 3. simple
explaination）
Chapter 16 Homework Problem erkitch Company's condensed comparative income statements and comparative balance sheets for 2016 and 2015 follow Merkitch Company Comparative Income Statements For the Years Ended December 31, 2016 and 2015 2016 2015 Net sales Cost of goods sold Gross profit Operating expenses $3,276,800 2,088,800 $1,188,000 $3,146,400 2,008,400 $1,138,000 $518,000 423,200 $924,000$941,200 $196,800 39,200 $157,600 56,800 100,800 $2.52 $476,800 447,200 Selling expenses Administrative expenses Total operating...
1-Complete vertical analysis by using the structure in the upper
segment below and horizontal analysis in the lower segment
below.
2-Briefly comment on the trend in the revenues and expenses
below the horizontal analysis segment.
Comparative Consolidated Income Statement For the Year Ended December 31, 2018 12/31/2018 Amount S 3.276,800 $ 2,088,800 S 1,188,000 12/31/2017 Amount S 3.146.400 S 2,008.400 S 1,138,000 Percent Percent Net Sales Cost of Goods Sold Gross Profit Operating expenses: Selling expenses Administrative expenses Total operating...
Simon Company's year-end balance sheets follow At December 31 Assets 2017 2016 2015 as Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets $ 31,200 34,200 $ 36,700 52,800 54,200 4,305 291,369 278,627 231,995 $525,000 $470,000 $ 380,000 64,300 103,556 83,200 9,673 88,700 10,175 Liabilities and Equity Accounts payable $133,340 81,019 $ 48,655 Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 83,980 162,500 162,500162,500 84,865...
Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 28,167 84,968 103,689 9,348 260,975 $ 487,147 $ 32,924 $ 58,794 78,468 8,643 241,125 $ 419,954 $ 34,307 45,742 48,233 3,774 211,044 343,100 $ 120,087 $ 69,553 $ 44,383...
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Simon Company's year-end balance sheets follow. BERTATE 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity $ 35,705 $ 40,999 $ 43,031 102,458 72,314 57,375 130, 110 93,647 59,924 11,498 10,630 4,781 319,401 299,028 256,889 $ 599,172 $ 516,528 $ 422,000 $ 146,210 $...
Simon Company's year-end balance sheets follow. 2017 2016 2015 At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings Total liabilities and equity 25,138 $ 29,084 $ 75,087 53,520 90,668 70,029 8,13 7,871 235,849 214,285 $ 434,755 $ 374,789 $ 31,223 41,227 43,046 3,335 187,369 306,200 $ 107,171 $ 62,706 $ aces...
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Comprehensive: Comparative Income Statements Tiger Company's accountant for the prepared comparative income statements for 2016 and 2017 as follows: Comparative Income Statements For Years Ended December 31 2017 2016 Sales Cost of goods sold Gross profit Operating expenses Operating income Other items Income before income taxes Income tax expense (30%) $ 3,500,000 (1,600,000) $ 1,900,000 (1,300,000) 5600,000 (200,000) $400,000 (120,000) $280,000 $4,600,000 (2,600,000) $2,000,000 (1,500,000) $500,000 100,000 $600,000 (180,000) $420,000 Net income The auditor of Tiger Company reviewed the accounting...
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