Home / Questions / EXERCISE 15 1 Common-Size Income Statement LO1 A comparative income statement is given bel...
EXERCISE 15–1 Common-Size Income Statement [LO1]
A comparative income statement is given below for Ryder Company:
|
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$5,000,000 |
|
$4,000,000 |
|
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . |
3,160,000 |
|
2,400,000 |
|
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . |
1,840,000 |
|
1,600,000 |
|
Selling and administrative expenses: Selling expenses . . . . . . . . . . . . . . . . . . . . . . . |
900,000 |
|
700,000 |
|
Administrative expenses . . . . . . . . . . . . . . . . . |
680,000 |
|
584,000 |
|
Total selling and administrative expenses . . . . . |
1,580,000 |
|
1,284,000 |
|
Net operating income . . . . . . . . . . . . . . . . . . . . . |
260,000 |
|
316,000 |
|
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . |
70,000 |
|
40,000 |
|
Net income before taxes . . . . . . . . . . . . . . . . . . . |
$ 190,000 |
|
$ 276,000 |
The president is concerned that net income is down even though sales have increased during the year. The president is also concerned that administrative expenses have increased because the company made a concerted effort to cut waste out of the organization.
Required:
1. Express each year’s income statement in common-size percentages. Carry computations to one decimal place.
2. Comment briefly on the changes between the two years.
Jun 28 2020 View more View Less
Tyrone currently holds a management position at XYZ Corporation. He is excellent at time management and does not hesitate to delegate tasks to subordinates. Tyrone feels ...
Nov 30 2017Consider two concentric spheres forming an enclosure with diameters of 12 cm and 18 cm and surface temperatures 300 K and 500 K, respectively. Assuming that the surfaces ...
Jul 19 2020In a random sample of 400 measurements, 227 possess the characteristic of interest, A.a. Use a 95% confidence interval to estimate the true proportion p of measurements i...
Aug 07 2020Jose is 25 years old today and has a retirement plan that permits him to place monthly amounts of $150 into a retirement vehicle, beginning one month from now, for 30 con...
Aug 10 2020Suppose government were to provide free daycare for children and assume this has no effect on the real wage w, taxes T, and dividend income π. Determine effect of the day...
May 18 2018If the supply price on 100 acres is zero, then $30 for the next 100 acres, and finally $60 for the third 100 acres, the supply curve of land ...
Dec 12 2019Two straights intersect making a deflection angle of 59?24’, the chainage at the intersection point being880 m. The straights are to be joined by a simple curve commencin...
May 24 2020find out the missing frequencies of the followings series if the A.M is 35 and total number of item is 100.class interval frequency0-10 510-20 1020-30 ?30-40 440-50 2050-...
Aug 21 2020The following transactions occurred between Kinzer Furniture and M & L Furniture Warehouse during May of the current year: May 4 Kinzer Furniture purchased $5,800 of m...
Apr 01 2020Total factor productivity continuation of 13 37 Refer to the data Total factor productivity (continuation of 13-37). Refer to the data for problem 13-38. Assume the fabr...
Apr 01 2020