An analyst prepares the following common-size income statements for Perez Company: 20X1 20X2 20X3 Sales 100%...
An analyst prepares the following common-size income statements for Perez Company:
| 20X1 | 20X2 | 20X3 | |
| Sales | 100% | 100% | 100% |
| Cost of goods sold | 50% | 52% | 53% |
| Selling and administrative expense | 16% | 12% | 9% |
| Interest income | 4% | 4% | 4% |
| Pretax income | 30% | 32% | 34% |
| Income tax expense | 15% | 16% | 17% |
| Net income | 15% | 16% | 17% |
Based only on this information, Perez's improving net profit margin
is most likely a result of:
|
improving gross margins. |
||
|
greater financial leverage. |
||
|
controlling operating expenses. |
Homework Answers
Option improving gross margins.
Reason: The cost of goods sold has decreased over the years consistently whereas the operating expenses have gone up. Also the interest income is constant hence does not contribute to any improvement.
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An analyst prepares the following common-size income statements
for Perez Company:
20X1
20X2
20X3
Sales
100%...
3) The Keyes company had the following comparative income statements for 20x2 and 20x1: 20x2 20x1...
3) The Keyes company had the following comparative income statements for 20x2 and 20x1: 20x2 20x1 Net sales Cost of goods sold $630,000 428,400 $552,000 389,160 Gross profit from sales Operating expenses 201,600 97,500 162,840 78,600 Net income $104,100 $84240 What are the cost of goods sold in common size percentages for 20x2 and 20x1? a) 110.1% in 20x2; 100% in 20x1 b) 24.3% in 20x2; 21.6% in 20x1 c) 41.2% in 20x2; 46.2% in 20x1 d) 68% in 20x2;...
need help asap Returi Following are income statements for Hossa Corporation for 20X1 and 20x2. Percentage...
need help asap
Returi Following are income statements for Hossa Corporation for 20X1 and 20x2. Percentage of sales amounts are also shown for each operating expense Item. Hossa's Income tax rate was 22% in 20X1 and 24% in 20x2. of sales of sales 18 in millions) Sales Cont of sales Other operating expenses Operating income Provision for income taxes Net Income Income tax rate 2001 $ in millions $ 5,500.0 (2,475.0) (925.0) 2,200.0 (484.0) $1,216.0 228 450 150 20x2 3...
20X1 AND 20X2 FINANCIAL STATEMENTS Bio-Fuels Generation Incorporated Statement of comprehensive income for the year ended...
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Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2 Swasey...
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2 Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1 20X1 20X2 2 Current assets: 3 Cash $460,000.00 $1,320,000.00 4 Accounts receivable $1,500,000.00 $1,165,000.00 5 Inventories 600,000.00 640,000.00 6 Long-term assets: 7 Plant and equipment 4,400,000.00 4,300,000.00 8 Accumulated depreciation (2,400,000.00) (2,540,000.00) 9 Land 2,000,000.00 2,875,000.00 10 Total assets $6,560,000.00 $7,760,000.00 11 Current liabilities: 12 Wages payable $1,400,000.00 $1,030,000.00 13 Long-term liabilities: 14...
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When answering, I NEED to see the formulas you
use. Please and thank you.
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Problem 3-26 The Protek Company is a large manufacturer and distributor of electronic components. Because of...
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Common-Sized Income Statement Revenue and expense data for the current calendar year for Sorenson Electronics Company...
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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting CANTON CORPORATION Income Statement for 20x1 Sales $152,100 (11,700 units at $13.00) Cost of goods sold 93,6ee (11,700 units at $8.00) Gross profit $ 58,500 Selling and administrative expense 9,126 Depreciation 19,400 Operating profit $ 29,974 Taxes (3) 8.992 Aftertax income $ 20,982 a. Assume in 20X2 the same 11700-unit volume is maintained but that the sales price increases by 10 percent. Because of Inventory policy,...
3) The Keyes company had the following comparative income statements for 20x2 and 20x1: 20x2 20x1 Net sales Cost of goods sold $630,000 428,400 $552,000 389,160 Gross profit from sales Operating expenses 201,600 97,500 162,840 78,600 Net income $104,100 $84240 What are the cost of goods sold in common size percentages for 20x2 and 20x1? a) 110.1% in 20x2; 100% in 20x1 b) 24.3% in 20x2; 21.6% in 20x1 c) 41.2% in 20x2; 46.2% in 20x1 d) 68% in 20x2;...
need help asap
Returi Following are income statements for Hossa Corporation for 20X1 and 20x2. Percentage of sales amounts are also shown for each operating expense Item. Hossa's Income tax rate was 22% in 20X1 and 24% in 20x2. of sales of sales 18 in millions) Sales Cont of sales Other operating expenses Operating income Provision for income taxes Net Income Income tax rate 2001 $ in millions $ 5,500.0 (2,475.0) (925.0) 2,200.0 (484.0) $1,216.0 228 450 150 20x2 3...
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When answering, I NEED to see the formulas you
use. Please and thank you.
G25 Innovation Electronics, Inc. Statement of Cash Flows For the Year Ended December 31, 20x2 Additional information for 20X2 1. Assume that all increases and decreases in long term assets, long term liabilities, and common stock are as a result of cash transactions. 2. Land costing $46,500 was sold, resulting in a gain of $6,500. No other Cash Flows from Operating Activities: Net Income Adjustments to...
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