Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 9, Problem 1PB
Use the following information to answer the questions that follow.
A. Calculate the operating income percentage for each of the stores. Comment on how your analysis has changed for each store.
B. Perform a vertical analysis for each store. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Discuss the difference between the multiple-step and single-step forms of the income statement. Which form would the management of a large retail store most likely use? Why?
Please solve the following question. Using the accounts below, prepare a basic Income Statement.
All accounts will be used once. Use the example below to help with the solution
Cost of Goods Sold
General & Admininstrative Expense
Interest Expense
Net Sales Revenue
Net Sales
COGS
Selling Expense
Wages Expense
Gross Profit or Margin
Operating Expenses:
Selling Exp
General & Admininstrative Exp
Research & Development Exp
Insurance Exp
Here an example of this type of question that you can use to help with the solution
Income Statement
For Year Ending Dec. 31, 2022
Wages Exp
Depreciation, Amortization, & Depletion Exp
Total Operating Expenses
Operating Income
Other Income/Loss:
Interest Income
Gain on Sale of Asset
Loss on Sale of Asset
Interest Expense
Income before Taxes
Income Tax Expense
$
$
$
$
$
$
Net Income
22,000
15,000
2,200
100,000
$
10,000
5,000
$1,000,000
(450,000)
550,000
15,000
225,000
5,000
7,500
85,000
20,000
357,500
192,500
20,000
5,000
(5,000)
(10,000)
202,500
(142,500)…
Looking for an expert Accounting Tutor thank you
TIPS:1. Get the Cost of Goods Sold(COGS) - compute for it, andyan yan. Compute for this first.2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income
Additional reference:SINGLE STEP APPROACH that your going to use
Chapter 9 Solutions
Principles of Accounting Volume 2
Ch. 9 - Which of the following is nor a common goal of an...Ch. 9 - Which of the following does not describe a...Ch. 9 - In centralized organizations, primary decisions...Ch. 9 - A key advantage of a decentralized organization is...Ch. 9 - Strategic decisions occur ______. A. frequently...Ch. 9 - Segments are uniquely identifiable components of...Ch. 9 - Organizational charts _____. A. list the salaries...Ch. 9 - In a centralized organization, where are goals...Ch. 9 - Managers in decentralized organizations make...Ch. 9 - Which of the following is not a type of...
Ch. 9 - A system that establishes financial accountability...Ch. 9 - A responsibility center in which managers are held...Ch. 9 - A responsibility center structure that considers...Ch. 9 - An important goal of a responsibility accounting...Ch. 9 - Costs that a company or manager can influence are...Ch. 9 - An example of an uncontrollable cost would include...Ch. 9 - Internal costs that are charged to the segments of...Ch. 9 - A transfer pricing arrangement that uses the price...Ch. 9 - A transfer pricing structure that considers the...Ch. 9 - What is a management control system? What are its...Ch. 9 - Identify and describe the levels of management,...Ch. 9 - Discuss the difference between centralized and...Ch. 9 - Identity a company where you recently shopped....Ch. 9 - Discuss the difference between daily and strategic...Ch. 9 - Define segments and describe how identifying...Ch. 9 - Choose a company and describe how a specific...Ch. 9 - Choose a company and explain how a specific issue,...Ch. 9 - Assume you are the manager of a local Starbucks....Ch. 9 - Assume you are the manager of a local Starbucks....Ch. 9 - Lavell started out mowing lawns in the...Ch. 9 - Describe the concept of responsibility accounting.Ch. 9 - Describe the concept of a cost center and, using a...Ch. 9 - Describe the concept of a profit center and, using...Ch. 9 - Explain the benefits of a return on investment...Ch. 9 - Explain the benefits of a residual income...Ch. 9 - Discuss the concept of controllable and...Ch. 9 - Discuss the concept of transfer pricing.Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Discuss the advantages and disadvantages of a...Ch. 9 - Assume you have been hired by Hilton Hotels and...Ch. 9 - Consider the national nonprofit organization the...Ch. 9 - The following information is from Bluff Run Golf...Ch. 9 - The following information is from Daves Sporting...Ch. 9 - Assume you are the department B manager for...Ch. 9 - As manager of department B in MarIeys...Ch. 9 - Based on your research of the market in the...Ch. 9 - Using the information in the previous exercises...Ch. 9 - Assume you have been hired by Cabelas Sporting...Ch. 9 - Assume you are the regional manager for a hotel...Ch. 9 - The following information is from Dessert Dynasty....Ch. 9 - The following information is from Good Read Books....Ch. 9 - Assume you are the warehouse manager for Vinnies...Ch. 9 - As manager of the warehouse for Vinnies Vinyls,...Ch. 9 - Discuss how, as warehouse manager for Vinnies...Ch. 9 - Determine the operating income for Vinnies Vinyls...Ch. 9 - Use the following information to answer the...Ch. 9 - The income statement comparison for Forklift...Ch. 9 - Assume you are the leather department manager at...Ch. 9 - Financial information for BDS Enterprises for the...Ch. 9 - Using the information from BDS Enterprises,...Ch. 9 - Management of Great Springs Bottled Water Company...Ch. 9 - The following revenue data were taken from the...Ch. 9 - Use the following information to answer the...Ch. 9 - The income statement comparison for Rush Delivery...Ch. 9 - Assume you are the manager for the semi-trucks...Ch. 9 - Financial information for Lighthizer Trading...Ch. 9 - Using the information for Lighthizer Trading...Ch. 9 - Management of Green Peak Tea Company has asked...Ch. 9 - The following revenue data were taken from the...Ch. 9 - You have just been elected president of a...
Additional Business Textbook Solutions
Find more solutions based on key concepts
When do permanent differences arise?
Intermediate Accounting
E9-15 Identifying and correcting internal control weakness
Learning Objective 1
Suppose The Right Rig Dealers...
Horngren's Accounting (11th Edition)
What type of organization primarily offers tax compliance, auditing, and consulting services? A. corporations B...
Principles of Accounting Volume 1
Sutherland Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the fo...
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (4th Edition)
LO 4,6 (Learning Objective 4, 6: Analyze alternative plans for raising money) United Financial Services is cons...
Financial Accounting (12th Edition) (What's New in Accounting)
Knowledge Booster
Similar questions
- Use the following information to answer the questions that follow. A. Calculate the operating income percentage for each of the courses. Comment on how your analysis has changed for each course. B. Perform a vertical analysis for each course. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explainarrow_forwardAnalyze typical business transactions and choose suitable account headings for your income statement.arrow_forwardHow is Profit Margin calculated and what does It measure? What are some of the sources where one can Find financial information? What is an operating cycle and how it is Calculated?arrow_forward
- Explain the purpose of and the information found on the income statement. What are the differences between the multi-step and simple income statement? Which provides better information for users?arrow_forward1.Calculate the trends in the sales and cost of sales and comment on the information disclosed by your analysis.arrow_forwardexplain the image provided the Gross profit margin, Return on sales, return on assets, return on equity and give recommendationarrow_forward
- Identify which one of the following formula is used to calculate the net income of the service companies in an accounting period? a.Net Purchases – Cost of goods sold b.Net Sales – Cost of goods sold c.Services Revenue – Operational and Administrative Expenses d.Operational and Administrative Expenses – Service Revenuearrow_forwardThe GAAP is an acronym that represents which of the following?Choose one answer.a. Principles for inventory monitoring b. Principles for marketing costs c. Principles for financial reporting d. Principles for global trackingarrow_forwardWhat is the importance of forecasting revenue and cost in the business?arrow_forward
- What is the accounting equation and discuss how it impacts on the operations of a business? 2. Why is liquidity critical for a business and how might this affect decision making? 3. Why is investment appraisal important to a business? Use examples to support your reasons. 4. What is meant by relevant costs and critically explain their role in decision making. 5. Discuss the benefits of the information contained in the Income Statement/Profit and Loss Account.arrow_forwardWhat are some of the expenses associated with the provision of accounting data? What are some of the advantages of having accounting information on hand? Describe the cost-benefit considerations that should be taken into account when new accounting standards are being evaluated.arrow_forwardExplain the way sales returns reflect financial statements.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Pkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE L
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,