In: Accounting
Income Statement (vertical) report with a run date of 12/31/-. Provide a narrative analysis of this report in a manner similar to that done in the chapter. Use your own words based on the information provided in this report.
Casey Corporation | ||||
Income Stmt. Vertical Analysis | ||||
For Years Ended 12/31/17 and 12/31/18 | ||||
Current | Current | Previous | Previous | |
Amount | Percent | Amount | Percent | |
Operating Revenue | ||||
Sales | 869,695.50 | 101.91 | 836,490.00 | 101.16 |
Sales Returns & Allow. | -9,150.00 | -1.07 | -6,000.00 | -0.73 |
Sales Discounts | -7,154.01 | -0.84 | -3,595.00 | -0.43 |
------------- | ------------- | ------------- | ---------- | |
Total Operating Revenue | 853,391.49 | 100 | 826,895.00 | 100 |
Cost | ||||
Cost of Merchandise Sold | 592,660.00 | 69.45 | 593,255.00 | 71.74 |
------------- | ------------- | ------------- | ---------- | |
Total Cost | 592,660.00 | 69.45 | 593,255.00 | 71.74 |
------------- | ------------- | ------------- | ---------- | |
Gross Profit | 260,731.49 | 30.55 | 233,640.00 | 28.26 |
Operating Expenses | ||||
Sales Salaries Expense | 74,368.94 | 8.71 | 63,873.10 | 7.72 |
Advertising Expense | 13,750.00 | 1.61 | 11,500.00 | 1.39 |
Depr. Exp. Store Eqpt. | 3,935.00 | 0.46 | 2,960.00 | 0.36 |
Insurance Expense Selling | 4,595.00 | 0.54 | 3,350.00 | 0.41 |
Store Supplies Expense | 820.32 | 0.1 | 1,729.30 | 0.21 |
Misc. Selling Expense | 850 | 0.1 | 1,525.00 | 0.18 |
------------- | ------------- | ------------- | ---------- | |
Selling Expenses | 98,319.26 | 11.52 | 84,937.40 | 10.27 |
Office Salaries Expense | 20,386.61 | 2.39 | 20,377.00 | 2.46 |
Utilities Expense | 8,991.47 | 1.05 | 8,776.72 | 1.06 |
Depr. Exp. Building | 19,000.00 | 2.23 | 17,000.00 | 2.06 |
Depr. Exp. Office Eqpt. | 2,020.00 | 0.24 | 1,135.00 | 0.14 |
Insurance Expense General | 2,500.00 | 0.29 | 1,800.00 | 0.22 |
Office Supplies Expense | 1,503.74 | 0.18 | 613.4 | 0.07 |
Misc. General Expense | 400 | 0.05 | 415 | 0.05 |
------------- | ------------- | ------------- | ---------- | |
Administrative Expenses | 54,801.82 | 6.42 | 50,117.12 | 6.06 |
------------- | ------------- | ------------- | ---------- | |
Total Operating Expenses | 153,121.08 | 17.94 | 135,054.52 | 16.33 |
------------- | ------------- | ------------- | ---------- | |
Net Income from Operations | 107,610.41 | 12.61 | 98,585.48 | 11.92 |
Other Revenue | ||||
Interest Income | 815.5 | 0.1 | 1,833.00 | 0.22 |
Gain on Sale Office Eqpt. | 130 | 0.02 | ||
Gain on Sale Store Eqpt. | 65 | 0.01 | ||
Other Expense | ||||
Interest Expense | 10,779.80 | 1.26 | 6,211.14 | 0.75 |
------------- | ------------- | ------------- | ---------- | |
Net Income before Income Tax | 97,711.11 | 11.45 | 94,337.34 | 11.41 |
Income Tax | ||||
Corporate Income Tax | 26,800.00 | 3.14 | 24,872.00 | 3.01 |
------------- | ------------- | ------------- | ---------- | |
Net Income after Income Tax | 70,911.11 | 8.31 | 69,465.34 | 8.4 |
============= | ============= | ============= | ========== | |
1.Sales Revenue has benn increased by 0.75%, however Gross profit ratio increased by 2.29% which shows Casey Corporation has reduce their cost, which is good sign for the orgnization.
2.Total operating cost has been increased by 1.61% as compare to previous year, however Net profit also increased by 0.69% that means orgnization is on growth stage.
3.Non opearting Income means other income has decreased by 0.01% that means organization has not dependent on non opearting Income.
4.Interset expenses increased by 0.51% as compare to previous year which shows company has taken loan from outrside.
5.This is common theory if you are earning more you have to pay more to government, here orgnization is earning higher net profit hence they have to pay higher amount of tax to government.
6.Since Casey corporation is paying higher taxes, hence it is impact to companies profit after tax ratio which is decreased by 0.09%.
7.In this year company has sale their equipment, taken loan from outside & take back their advance loan given to others beacuse of this companies interses income reduced.