Homework Help Question & Answers

26. Another term for vertical analysis is a. common-size analysis. b. liquidity analysis. c. horizontal analysis....

26. Another term for vertical analysis is a. common-size analysis. b. liquidity analysis. c. horizontal analysis. d. leverage

26. Another term for vertical analysis is a. common-size analysis. b. liquidity analysis. c. horizontal analysis. d. leverage analysis. 27. Common-size statements are especially useful in comparing a. a company's performance across time. b. companies of different sizes. c. supplemental information included in the corporate annual report. d. companies of the same size. 28. In preparing a common-size balance sheet, you express all account balances as a percentage of a. total stockholders' equity. b. total liabilities. c. total assets plus total liabilities minus stockholders' equity. d. total assets. 29. In preparing a common-size income statement, you express all revenue and expense account as a percentage of a. net income. b. operating income. c. gross profit. d. net sales revenue. 30. The following financial statement items are shown for J&T Manufacturing. $ 24,000 Inventory Total assets Salaries payable 120,000 12,000 Total liabilities 52,000 Calculate the common-size percentage for inventory. a. 8% b. 14% c. 20% d. 500%
0 0
Add a comment
Answer #1

(26) Another term for verticle analysis is Ans: (a) common-size analysis 27. Commonsize statements are especially Oceful in c

Add a comment
Know the answer?
Add Answer to:
26. Another term for vertical analysis is a. common-size analysis. b. liquidity analysis. c. horizontal analysis....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • *************Just choose the correct answer 5- COMMON-SIZE STATEMENTS Includes:(……………….). * A) Common-Size Balance Sheets. B) Common-Size...

    *************Just choose the correct answer 5- COMMON-SIZE STATEMENTS Includes:(……………….). * A) Common-Size Balance Sheets. B) Common-Size Income Statements. C) Common-Size Statements of Cash Flows. D) All of the above. ___________ 6- COMMON-SIZE STATEMENTS IS (………………). * A) A standardized financial statement presenting all items in percentage terms. B) NOT A standardized financial statement presenting all items in percentage terms. C) A standardized financial statement presenting one items in percentage terms. D) All of the above. ______________ 7- Common–Base Year Statement...

  • (Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing...

    (Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing Company, you have been asked to perform a basis financial analysis of the company's most recent financial statements. The 2016 balance sheet and income statement for the Patterson are shown here: :: a. After discussing your training asignment with a fellow analyst who was hired last year, you learn that the first step in your completing the assignment is to prepare a common-size balance...

  • A main element of financial statement analysis is the use of common-size financial statements, also called...

    A main element of financial statement analysis is the use of common-size financial statements, also called "vertical analysis." A common-size balance sheet divides each account's value by the value of total assets, while a common-size income statement divides each entry by net sales revenue Common-size balance sheets immediately show how a firm's assets, liabilities, and equity are distributed. Common-size income statements give a quick snapshot of how various expenses and types of income relate to sales revenue. The following common-size...

  • 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...

  • Using vertical analysis, prepare a common size comparative balance sheet. (Round percentages to 0 decimal places,...

    Using vertical analysis, prepare a common size comparative balance sheet. (Round percentages to 0 decimal places, eg, 12%.) Delta COMPANY Comparative Balance Sheet December 31, 2017 2016 Amount Percentage Amounft $280 520 ssets Percentage Current assets $450 Plant assets 550 Total assets Liabilities and stockholders' equity Current liabilities Long-term debt Common stock $1,000 $800 $120 160 320 200 $180 250 310 Retained earnings 260 Total liabilities and stockholders' equity $1,000 $800

  • Problem 23.1A Horizontal and vertical analysis of income statement and balance sheet. LO 23-1, 23...

    Problem 23.1A Horizontal and vertical analysis of income statement and balance sheet. LO 23-1, 23-2 The EastTN Company sells computer parts through a retail store that it operates. The firm’s comparative income statement and balance sheet for the years 2016 and 2015 are shown below.    1-a. Complete both a horizontal and a vertical analysis of comparative income statement for the years 2016 and 2015. (Round your percentage answers to 1 decimal place. i.e., 0.123 should be entered as 12.3.) 1-b....

  • P3-19 Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows. Using the...

    P3-19 Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows. Using the firm's 2019 income statement presented in Problem 3-16, develop the 2019 common-size income statement and compare it with the 2018 statement. Which areas require further analysis and investigation? Creek Enterprises Common-Size Income Statement for the Year Ended December 31, 2018 100.0% 65.9 34.1% Sales revenue ($35,000,000) Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense...

  • (Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing...

    (Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing Company, you have been asked to perform a basis financial analysis of the company's most recent financial statements. The 2016 balance sheet and income statement for the Patterson are shown here: E a. After discussing your training asignment with a fellow analyst who was hired last year, you learn that the first step in your completing the assignment is to prepare a common-size balance...

  • Application Problem 12-1A a-b (Common-size analysis and differences in profitability) Comparative financial statement data for First...

    Application Problem 12-1A a-b (Common-size analysis and differences in profitability) Comparative financial statement data for First Ltd. and Supreme Ltd., two competitors, follow: Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Capital assets (net) Current liabilities Long-term liabilities Share capital Retained earnings First Ltd. 2020 2019 $333,400 203,374 62,990 3,440 17,330 175,950 $153,650 420,700 332,180 48,820 40,560 72,040 101,660 313,000 249,000 162,790 94,610 Supreme Ltd. 2020 2019 $2,121,600 1,230,528 473,250 34,100 65,940 1,069,600...

  • Prepare a vertical analysis of the income statement and balance sheet. Show each item on the...

    Prepare a vertical analysis of the income statement and balance sheet. Show each item on the income statement as a percentage of the net sales for each year. On the balance sheet, show each asset item as a percentage of the total assets and each liability and equity item as a percentage of the total liabilities and stockholders' equity. Round percentages to one decimal place. Miller Electronics Corporation Comparative Income Statement For Years Ended December 31, 20-2 and 20-1 20-2...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT