FIN 333 Some Measures of Profitability and an EVA calculation

GIVE THE COMPARATIVE INCOME STATEMENT HORIZONTAL AND VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - -…

GIVE THE COMPARATIVE INCOME STATEMENT HORIZONTAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…

GIVE THE COMPARATIVE INCOME STATEMENT VERTICAL ANALYSIS FROM THE FOLLOWING INCOME STATEMENT BELOW JOLLIBEE INCOME STATEMENT ITEM 2016 2017 2018 2019 2020 Sales/Revenue 113.81B 133.61B 161.17B 179.63B 129.31B Sales Growth - 17.40% 20.62% 11.45% -28.01% Cost of Goods Sold (COGS) incl. D&A - - 132.96B 150.88B 115.39B COGS Growth - - - 13.47% -23.52% COGS excluding D&A 89.27B 105.39B 121.08B 137.38B 100.82B Depreciation & Amortization Expense 4B 4.75B 11.89B 13.5B 14.57B Depreciation 3.93B 4.66B 11.73B 13.34B 14.32B Amortization of Intangibles 68.99M 78.95M 151.82M 145.42M 245.23M Gross Income 20.54B 23.48B 28.21B 28.75B 13.92B Gross Income Growth - 14.30% 20.12% 1.93% -51.57% Gross Profit Margin - - - - 10.77% SG&A Expense - - 17.64B 20.21B 20.42B SGA Growth - - - 14.57% 1.02%…

KORBIN COMPANY Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017   2019 2018 2017 Sales $ 459,716   $ 352,180   $ 244,400   Cost of goods sold   276,749     223,282     156,416   Gross profit   182,967     128,898     87,984   Selling expenses   65,280     48,601     32,261   Administrative expenses   41,374     30,992     20,285   Total expenses   106,654     79,593     52,546   Income before taxes   76,313     49,305     35,438   Income tax expense   14,194     10,108     7,194   Net income $ 62,119   $ 39,197   $ 28,244       KORBIN COMPANY Comparative Balance Sheets December 31, 2019, 2018, and 2017   2019 2018 2017 Assets                   Current assets $ 58,718   $ 39,300   $ 52,535   Long-term investments   0     500     4,280   Plant assets, net   109,047     99,561     58,646   Total assets $ 167,765   $ 139,361   $ 115,461   Liabilities and Equity                   Current liabilities $ 24,494…

Vertical analysis (common-size) percentages for Baker Company’s sales revenue, cost of goods sold, and expenses are as follows. Did Baker’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.   Vertical Analysis 2018 2017 2016 Sales revenue 100.0% 100.0% 100.0% Cost of goods sold 60.0 63.9 65.0 Expenses 26.0 26.6 27.5

Mac Donald company reported the following on its comparative income statement:     2017 2018 2019 Revenue 9,000 10,000 14,000 Cost of goods sold 6,000 4,000 9,000   Prepare a horizontal analysis of revenue , cost of goods sold and gross profit

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 22,800   $ 17,850     Sales returns and allowances   900     100     Net sales $ 21,900   $ 17,750     Cost of merchandise (goods) sold   11,050     7,700     Gross profit $ 10,850   $ 10,050     Operating expenses:               Depreciation $ 1,080   $ 790     Selling and administrative   5,050     3,900     Research   930     690     Miscellaneous   740     490     Total operating expenses $ 7,800   $ 5,870     Income before interest and taxes $ 3,050   $ 4,180     Interest expense   940     690     Income before taxes $ 2,110   $ 3,490     Provision for taxes   844     1,396     Net income $ 1,266   $ 2,094         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $ 11,800…

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 21,200   $ 16,650     Sales returns and allowances   800     100     Net sales $ 20,400   $ 16,550     Cost of merchandise (goods) sold   11,450     8,400     Gross profit $ 8,950   $ 8,150     Operating expenses:               Depreciation $ 920   $ 710     Selling and administrative   3,850     3,100     Research   770     610     Miscellaneous   580     410     Total operating expenses $ 6,120   $ 4,830     Income before interest and taxes $ 2,830   $ 3,320     Interest expense   780     610     Income before taxes $ 2,050   $ 2,710     Provision for taxes   820     1,084     Net income $ 1,230   $ 1,626         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $ 13,100   $…

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 23,800   $ 18,600     Sales returns and allowances   1,000     100     Net sales $ 22,800   $ 18,500     Cost of merchandise (goods) sold   10,800     7,200     Gross profit $ 12,000   $ 11,300     Operating expenses:               Depreciation $ 1,180   $ 840     Selling and administrative   5,800     4,400     Research   1,030     740     Miscellaneous   840     540     Total operating expenses $ 8,850   $ 6,520     Income before interest and taxes $ 3,150   $ 4,780     Interest expense   1,040     740     Income before taxes $ 2,110   $ 4,040     Provision for taxes   844     1,616     Net income $ 1,266   $ 2,424         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $…

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 21,600   $ 16,950     Sales returns and allowances   900     100     Net sales $ 20,700   $ 16,850     Cost of merchandise (goods) sold   11,350     8,300     Gross profit $ 9,350   $ 8,550     Operating expenses:               Depreciation $ 960   $ 730     Selling and administrative   4,150     3,300     Research   810     630     Miscellaneous   620     430     Total operating expenses $ 6,540   $ 5,090     Income before interest and taxes $ 2,810   $ 3,460     Interest expense   820     630     Income before taxes $ 1,990   $ 2,830     Provision for taxes   796     1,132     Net income $ 1,194   $ 1,698         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $ 13,300   $…

Refer to the following mentioned data. Net sales Cost of products sold Gross margin (In millions) 2017 2016 $34,954 $30, 040 14,274 13, 395 $20, 680 $16, 645 2017 2016 2015 Required: a. Calculate the gross profit ratio for each of the past three years. (Round your answers to 2 decimal places.) 2015 $26, 091 13, 655 $12, 436 59.16 % 55.41 % 47.66 %

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 22,400   $ 17,550     Sales returns and allowances   800     100     Net sales $ 21,600   $ 17,450     Cost of merchandise (goods) sold   11,150     7,900     Gross profit $ 10,450   $ 9,550     Operating expenses:               Depreciation $ 1,040   $ 770     Selling and administrative   4,750     3,700     Research   890     670     Miscellaneous   700     470     Total operating expenses $ 7,380   $ 5,610     Income before interest and taxes $ 3,070   $ 3,940     Interest expense   900     670     Income before taxes $ 2,170   $ 3,270     Provision for taxes   868     1,308     Net income $ 1,302   $ 1,962         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $ 11,800…

Selected comparative financial statements of Haroun Company follow.  HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 2,318 $ 2,030 $ 1,847 $ 1,693 $ 1,580 $ 1,469 $ 1,204 Cost of goods sold 1,667 1,356 1,167 1,021 949 887 707 Gross profit 651 674 680 672 631 582 497 Operating expenses 497 389 356 263 228 225 187 Net income $ 154 $ 285 $ 324 $ 409 $ 403 $ 357 $ 310   HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets               Cash $ 89 $ 118 $ 122 $ 125 $ 130 $ 128 $ 132 Accounts receivable, net 640 672 608 467 411 389 275 Merchandise inventory 2,315 1,685 1,472 1,241 1,114 946 686 Other…

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 22,400   $ 17,550     Sales returns and allowances   800     100     Net sales $ 21,600   $ 17,450     Cost of merchandise (goods) sold   11,150     7,900     Gross profit $ 10,450   $ 9,550     Operating expenses:               Depreciation $ 1,040   $ 770     Selling and administrative   4,750     3,700     Research   890     670     Miscellaneous   700     470     Total operating expenses $ 7,380   $ 5,610     Income before interest and taxes $ 3,070   $ 3,940     Interest expense   900     670     Income before taxes $ 2,170   $ 3,270     Provision for taxes   868     1,308     Net income $ 1,302   $ 1,962         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $ 11,800…

Refer to the following mentioned data. Net sales Cost of products sold Gross margin 2017 2016 2015 Required: a. Calculate the gross profit ratio for each of the past three years. (Round your answers to 2 decimal places.) (In millions) 2016 2017 2015 $34,894 $30,411 $26,113 14,318 13,376 13,767 $20,576 $17,035 $12,346 Cost of goods sold Gross profit 58.94 % % % b. Assume that Campbell's net sales for the first four months of 2018 totaled $12.79 billion. Calculate an estimated cost of goods sold and gross profit for the four months, using the gross profit ratio for 2017. (Round Intermediate calculations to 2 decimal places. Enter your answers in millions rounded to nearest whole number (1.e., 5,000,000 should be entered as 5).) million million

LOGIC COMPANY     Comparative Income Statement     For Years Ended December 31, 2017 and 2018                       2018 2017   Gross sales $ 22,600   $ 17,700     Sales returns and allowances   1,000     100     Net sales $ 21,600   $ 17,600     Cost of merchandise (goods) sold   11,100     7,800     Gross profit $ 10,500   $ 9,800     Operating expenses:               Depreciation $ 1,060   $ 780     Selling and administrative   4,900     3,800     Research   910     680     Miscellaneous   720     480     Total operating expenses $ 7,590   $ 5,740     Income before interest and taxes $ 2,910   $ 4,060     Interest expense   920     680     Income before taxes $ 1,990   $ 3,380     Provision for taxes   796     1,352     Net income $ 1,194   $ 2,028         LOGIC COMPANY     Comparative Balance Sheet     December 31, 2017 and 2018                   2018 2017   Assets               Current assets:               Cash $…

10: Application of Financial Ratios Used to Measure Profitability The income statement of Garnet Mfg. Corp. for 2018 shows the following: Sales, net P 700,000 15,000 400,000 Net credit sales Cost of goods sold Cost of goods manufactured Net credit purchases 410,000 150,000 225,000 90,000 212,500 20,000 Raw materials used Net income Total operating expenses Depreciation Net income 90,000 The balance sheet figures as of December 31, 2017 and 2018 are as follows: December 31 2017 2018 P12,500 P 25,000 Cash 17,500 28,750 Marketable securities 10,000 20,000 Accounts receivable, net Inventories: 25,000 35,000 Finished goods Work in process 22,500 15,000 3,750 P 150,000 37,500 17,500 10,000 Raw materials Prepaid expenses Total current assets 2,500 P95,000 37,500 Investments 117,500 187,500 Plant, property and equipment, net

Current Attempt in Progress The comparative statements of Pharoah Company are presented here. Pharoah Company Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 2025 $2,104,400 1,167,000 937,400 570.000 367,400 25.080 342,320 102,696 $239,624 2024 $1,960,000 1,146.840 813,160 546,060 267.100 22,800 244.300 73,290 $171.010 Assets Current assets Cash Debt investments (short-term) Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Pharoah Company Balance Sheets December 31 Liabilities and Stockholders' Equity. Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity 2025 $68,514 84,360 134,292 143,640 430,806 739,860 $1,170,666 $182,400 49,590 231,990 250,800 482,790 2024…

Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 2,260 $ 1,979 $ 1,801 $ 1,651 $ 1,540 $ 1,432 $ 1,174 Cost of goods sold 1,625 1,322 1,137 995 925 865 689 Gross profit 635 657 664 656 615 567 485 Operating expenses 483 378 347 256 222 219 182 Net income $ 152 $ 279 $ 317 $ 400 $ 393 $ 348 $ 303 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets Cash $ 111 $ 147 $ 153 $ 156 $ 162 $ 160 $ 165 Accounts receivable, net 800 840 760 583 514 487 343 Merchandise inventory 2,893 2,106 1,840 1,551 1,393 1,183 858 Other current assets 74 67 41 74 62 63 33 Long-term investments 0 0 0 228 228 228 228 Plant assets, net 3,541 3,527 3,086 1,740 1,799 1,599 1,373 Total assets $ 7,419 $ 6,687 $ 5,880 $ 4,332 $ 4,158 $ 3,720 $ 3,000 Liabilities and…

Use the following tables to answer the question:   LOGIC COMPANY Income Statement For years ended December 31, 2016 and 2017 (values in $) 2016 2017 Gross sales 19,800 15,600 Sales returns and allowances 900 100 Net sales 18,900 15,500 COGS 11,800 8,800 Gross profit 7,100 6,700 Depreciation 780 640 Selling and administrative expenses 2,800 2,400 Research 630 540 Miscellaneous 440 340 Total operating expenses 4,650 3,920 Income before interest and taxes 2,450 2,780 Interest expense 640 540 Income before taxes 1,810 2,240 Provision for taxes 724 896 LOGIC COMPANY Balance Sheet For years ended December 31, 2016 and 2017 (values in $) 2016 2017 Current assets 12,300 9,400 Accounts receivable 16,900 12,900 Merchandise inventory 8,900 14,400 Prepaid expenses 24,400 10,400 Total current assets 62,500 47,100 Building (net) 14,900 11,400 Land 13,900 9,400 Total plant and equipment 28,800 20,800 Total assets 91,300 67,900 Accounts payable 13,400 7,400 Salaries payable 7,500 5,400 Total current…

Selected comparative financial statements of Haroun Company follow. HAROUN COMPANY Comparative Income Statements For Years Ended December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Sales $ 2,272 $ 1,989 $ 1,810 $ 1,659 $ 1,548 $ 1,440 $ 1,180 Cost of goods sold 1,634 1,329 1,143 1,001 930 870 693 Gross profit 638 660 667 658 618 570 487 Operating expenses 486 380 349 257 223 220 183 Net income $ 152 $ 280 $ 318 $ 401 $ 395 $ 350 $ 304 HAROUN COMPANY Comparative Year-End Balance Sheets December 31, 2021–2015 ($ thousands) 2021 2020 2019 2018 2017 2016 2015 Assets               Cash $ 85 $ 113 $ 117 $ 120 $ 124 $ 123 $ 127 Accounts receivable, net 613 644 583 447 394 373 263 Merchandise inventory 2,218 1,615 1,411 1,189 1,068 907 658 Other current assets 57 51 32 56 48 48 25 Long-term investments 0 0 0 175 175 175 175 Plant assets, net 2,715 2,704 2,365 1,334 1,379 1,226 1,052 Total assets $ 5,688 $ 5,127 $ 4,508 $ 3,321…

Forecasting an Income StatementAutoZone Inc. reports the following income statements. Consolidated Statement of Income ($ in Thousands)   12 Months EndedAug. 27, 2016 Net sales   $10,635,676 Cost of sales, including warehouse and delivery expenses   5,026,940 Gross profit   5,608,736 Operating, selling, general and administrative expenses   3,548,341 Operating profit   2,060,395 Interest expense, net   147,681 Income before income taxes   1,912,714 Income tax expense   671,707 Net income   $1,241,007   Forecast AutoZone's 2017 income statement assuming the following income statement relations ($ in thousands). All percentages, (other than sales growth and provision for income taxes) are based on percent of net sales. Net sales growth 6% Cost of sales, including warehouse and delivery expenses 47.3% Operating, selling, general and administrative expenses 33.4% Interest expense, net $145,000 Income tax expense (% pretax income) 35%   Round your…

WINDSOR, INC.Income StatementFor the Year Ended December 31, 2023 Net Sales $340 Cost of Goods Sold    238 Gross Profit 102 Operating Expenses    40 Net Income $  62 Using vertical analysis, what percentage is assigned to gross profit? 100% 70.0% 42.9% 30.0%

An extract from an outdoor equipment company's 2021 financial statements follows: Income statement Year ended December 31, 2021 Year ended December 31, 2020 Sales 27,764 26,982 Net income 1,132 (322) What was the company's profitability ratio for 2021? O A. 13.7% OB. 8.8% O C. 4.08% O D. 7.9%

Computing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability (Net income/Sales) 25.3% 53.2% Productivity (Sales/Average assets) 0.338 0.319   a. Was the company profitable in 2018?Answer b. Was the company more profitable in 2018 or 2017?Answer c. Is the change in productivity a positive or negative development?Answer d. Compute the company’s ROA for 2018 and for 2017. Note: Round answers to one decimal places (example: 10.4%).    ROA 2018 Answer 2017 Answer   e. From the information provided, which of the following best explains the change in ROA during 2018? Answer

Comparative income statements and balance sheets for F&N are shown below ($ millions): Year 2 Year 1 Income Statement $19,889 6,204 Net sales. $20,092 6,044 Cost of goods Gross profit. Selling, general, and administrative expense Depreciation and amortization expense Interest expense (revenue) 14,048 7,893 803 (308) 13,685 9,221 773 292 3,399 1,222 Income before tax 5,660 1,691 Income tax expense. Net income $ 3,969 $ 2,177 Outstanding shares 3,491 3,481

Comparative Income Statements Consider the following income statement data from the Mono Company: Sales revenue Cost of goods sold Selling expenses Administrative expenses Income tax expense 2019 2018 $600,000 $450,000 336,000 279,000 105,000 99,000 60,000 50,000 4,000 3,000 Prepare a contparative income statement, showing increases, and decreases in dollars and in percentages. Note: Round "Percent Change" answers to one decimal place (ex: 0.2345 = 23.5%). Sales Revenue Cost of Goods Sold MONO COMPANY Comparative Income Statements ♦ Selling Expenses Administrative Expenses Total Income before Income Taxes ◆ → $ $ 2019 0 $ 0 0 0 0 oooo 0 0 $ 2018 Increase (Decrease) 0 $ 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 Percent Change 0% 0% 0% 0% 0% 0% 0% 0% 0 %

THE COCA-COLA COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In millions except per share data) Year Ended December 31, Net Operating Revenues Cost of goods sold Gross Profit Selling, general and administrative expenses 2019 2018 2017 37,266 S 34,300 S 36,212 14,619 13,067 13,721 22,647 21,233 22,491 12,103 11,002 12,834 458 1,079 1,902 Other operating charges 10,086 9,152 7,755 Operating Income Interest income 563 689 679 946 950 853 Interest expense Equity income (loss)-net 1,049 1,008 1,072 34 (1,674) (1,763) Other income (loss)- net 10,786 8,225 6,890 Income Before Income Taxes 1,801 1,749 5,607 Income taxes 8,985 6,476 1,283 Consolidated Net Income 42 35 Less: Net income (loss) attributable to noncontrolling interests Net Income Attributable to Shareowners of The Coca-Cola Company 65 8,920 S 6,434 S 1,248 2.09 S 1.51 $ 0.29 Basic Net Income Per Share 2.07 S 1.50 $ 0.29 Diluted Net Income Per Shard 4,276 4,259 4,272 Average Shares Outstanding- Basic 38 40 52 Effect of…

In its year-end financial statements, Pillar Inc. reported the following (in millions):   2016 2015 Sales $38,152 $46,541 Cost of goods sold $28,309 $33,211 As a percentage of sales, did Pillar's gross profit increase or decrease during the year? Select one: a. Gross profit decreased from 28.6% to 25.8% b. Gross profit increased from 71.4% to 74.2% c. Gross profit decreased from 74.2% to 71.4% d. There is not enough information to answer the question. e. Gross profit increased from 25.8% to 28.6%