Yahoo! reported the following in its 2011 financial statements (in thousands): (in millions) December 31, 2010...

Yahoo! reported the following in its 2011 financial statements (in thousands): (in millions) December 31, 2010 December 31, 2011 Total assets $14,928,104 $14,782,786 Revenues $6,324,651 $4,984,199 Product development expense $1,082,176 $1,005,090 Net income $1,244,628 $1,062,669 What is Yahoo's common-sized product development expense for 2011? A. 6.8% B. 20.2% C. 94.6% D. 93.7% E. None of the above

Expert Solution

A common size income statement is an income statement in which each account is expressed as a percentage of the value of sales.

Yahoo's common-sized product development expense for 2011 = 1,005,090/ 4,984,199

= 0.20165 or 20.2%

Correct answer is B.

jeff jeffy answered 2 years ago

Yahoo! reported the following in its 2013 financial statements (in thousands): December 31, 2013 December 31,...

Yahoo! reported the following in its 2013 financial statements (in thousands): December 31, 2013 December 31, 2012 December 31, 2011 Revenues $4,680,380 $4,986,566 $4,984,199 Product development expenditure $1,008,487 $885,824 $919,368 Assume that Yahoo! expensed 90% of its product development expenditure. Required: List three types of costs that Yahoo likely includes in the product development line item on the income statement. Used FSET to record the product development expenditure of 2013. What type of product development expenditure might Yahoo! capitalize?

The Goodyear Tire & Rubber Company’s December 31, 2011, financial statements reported the following (in millions).

In its 2010 annual report, Caterpillar Inc. reported the following (in millions): 20102009Sales$39,867$29,540Cost of goods sold30,36723,886 As a percentage of Sales, did Caterpillar’s Gross profit increase or decrease during 2011?A) Gross profit increased from 19% to 24%B) Gross profit decreased from 24% to 19%C) Gross profit increased from 76% to 81%D) Gross profit decreased from 81% to 76%E) There is not enough information to answer the question.The Goodyear Tire & Rubber Company’s December 31, 2011, financial statements reported the following...

Trio Company’s December 31, Year 2 financial statements reported the following (in millions). Cash December 31...

Trio Company’s December 31, Year 2 financial statements reported the following (in millions). Cash December 31 $1,132 Cash from operating activities $1,504 Cash from investing activities $(973) Cash from financing activities $(875) What did Trio Company report for cash on its December 31, Year 1 balance sheet? Select one: a. None of the these are correct. b. $344 million c. $2,281 million d. $1,476 million e. $788 million

The following information is taken from ABC Corporation's financial statements: December 31 2011 2010 Cash $90,000...

The following information is taken from ABC Corporation's financial statements: December 31 2011 2010 Cash $90,000 $ 27,000 Accounts receivable, net 87,500 76,900 Inventory 155,000 175,000 Prepaid expenses 7,500 6,800 Land 90,000 60,000 Buildings 287,000 244,000 Accumulated depreciation (32,000) (13,000) Patents 20,000 35,000 $705,000 $611,700 Accounts payable $ 90,000 $ 84,000 Accrued liabilities 54,000 63,000 Bonds payable 125,000 60,000 Common stock 100,000 100,000 Retained earnings 351,000 312,700 Treasury stock, at cost (15,000) (8,000) $705,000 $611,700 For 2011 Year Net income...

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the...

Terracotta Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended December 2, 2016. Accounts Payable $ 840 Accounts Receivable 880 Accumulated Amortization 500 Accumulated Depreciation 1,130 Allowance for Doubtful Accounts 30 Cash and Cash Equivalents 1,030 Common Stock 470 Deferred Revenue 1,980 Equipment 7,530 Income Taxes Payable 30 Notes Payable (long-term) 2,670 Notes Receivable (long-term) 250 Prepaid Rent 270 Retained Earnings 7,170 Service Revenue 490 Short-Term Investments 3,950 Software 910 Prepare a...

Terracotta, Inc. reported the following accounts and amounts (in millions) in its financial statements for the...

Terracotta, Inc. reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013. Accounts Payable $ 750 Accounts Receivable 670 Accumulated Amortization 480 Accumulated Depreciation 820 Allowance for Doubtful Accounts 40 Cash and Cash Equivalents 860 Equipment 5,255 Income Taxes Payable 40 Notes Payable (long-term) 1,800 Notes Payable (short-term) 30 Notes Receivable (long-term) 240 Prepaid Rent 300 Retained Earnings 7,230 Service Revenue 480 Short-term Investments 2,640 Software 635 Unearned Revenue 810 Prepare...

U8i4 Construction Company has the following account balances reported on its financial statements on December 31,...

U8i4 Construction Company has the following account balances reported on its financial statements on December 31, 2019. In addition, the company did not issue any common stock during 2019. All accounts on financial statements have been adjusted and reported. Equipment (net) $550 Deferred revenue 145 Salaries expense 60 Depreciation for the year 90 Common stock 60 Supplies 100 Notes payable 180 Service revenue 360 Cash 100 Dividend paid during the year 20 Retained earnings ? Required: Please choose the best...

On December 31, Starstruck Corporation reported, on its balance sheet, the following (in millions): Total assets...

On December 31, Starstruck Corporation reported, on its balance sheet, the following (in millions): Total assets $14,329.5 Total stockholders’ equity $5,890.7 Total current liabilities $4,546.9 What did Starstruck report as total liabilities on December 31? Select one: a. None of the these are correct. b. $15,673.3 million c. $9,782.6 million d. $8,439.8 million e. $3,891.9 million

Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2010 2009...

Lan & Chen Technologies: Income Statements for Year Ending December 31 (Thousands of Dollars) 2010 2009 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (40%) 35,492 34,360 Net income $53,238 $51,540 Common dividends $43,300 $41,230 Addition to retained earnings $9,938 $10,310 Lan & Chen Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2010 2009 Cash and cash equivalents...

The following are extracted from the financial statements of Frem, Inc., for 2012, 2011, and 2010....

The following are extracted from the financial statements of Frem, Inc., for 2012, 2011, and 2010. 2012 2011 2010 Net sales $233,000 $204,000 Cost of sales (124,000) (110,000) Selling and administrative expenses (95,000) (81,500) Other income: Interest (3,700) (3,050) Other 100 1,175 Earnings before tax and extraordinary credit $ 10,400 $ 10,625 Provision for income tax (4,800) (4,740) Earnings before extraordinary credit 5,600 5,885 Extraordinary credit - 1,510 $ 5,600 $ 7,395 Total assets $202,000 $173,000 $161,000 Long-term debt 24,600 17,400 15,200...

Question