Stuart Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Stuart Corporation's income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 sh entered as 23.4). STUART CORPORATION Income Statements Year 3 Year 2 Percentage Change Sales $ 1,296,000 $ 1,003,000 % Cost of goods sold 797,040 601,800 Gross margin 498,960 401,200 Operating expenses 301,000 195,500 Income before taxes 197,960 205,700 Income taxes 61,600 52,600 Net income (loss) $ 136,360 S 153,100 %

Stuart Corporation reported the following operating results for two consecutive years: Required a. Compute the percentage changes in Stuart Corporation's income statement components between the two years. Note: Negative amounts should be indicated by a minus sign. Round your answers to 1 decimal place. (i.e., 0.234 sh entered as 23.4). STUART CORPORATION Income Statements Year 3 Year 2 Percentage Change Sales $ 1,296,000 $ 1,003,000 % Cost of goods sold 797,040 601,800 Gross margin 498,960 401,200 Operating expenses 301,000 195,500 Income before taxes 197,960 205,700 Income taxes 61,600 52,600 Net income (loss) $ 136,360 S 153,100 %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 38E: Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
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Sundahl Companys income statements for the past 2 years are as follows: Refer to the information for Sundahl Company above. Required: Prepare a common-size income statement for Year 2 by expressing each line item for Year 2 as a percentage of that same line item from Year 1. (Note: Round percentages to the nearest tenth of a percent.)
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Horizontal analysis of the income statement Income statement data for Winthrop Company for two recent years ended December 31 are as follows: Current Year Previous Year Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income tax expense Income tax expense Net income $2,240,000 (1,925,000) $315,000 $(152,500) (118,000) $(270,500) $44,500 (17,800) $26,700 $2,000,000 (1,750,000) $250,000 $(125,000) (100,000) $(225,000) $25,000 (10,000) $15,000
Assume the following sales data for a company: Current year $896,005 Preceding year 607,844 What is the percentage increase in sales from the preceding year to the current year (rounded to one decimal place)? Oa. 47.4% Ob. 15.3% Oc. 32.2% Od. 79.6%
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