Question
In: Finance
Restate the following income statements for doing a Common Size comparison: Mega Corporation
Restate the following income statements for doing a Common Size comparison:
Mega Corporation My Small Company
Sales 7,000,000 80,000
Costs 5,000,000 50,000
Gross Margin 2,000,000 30,000
Depreciation 200,000 15,000
EBIT 1,800,000 15,000
Taxes 630,000 5,000
Net Income 1,170,000 10,000
Solutions
Expert Solution
In order to do a Common Size statement comparison, we need to convert all the figures given as percentage of sales as done below
Formulas used in the excel sheet are
Now using the above details we can compare both the companies with respect to the corresponding percentage of every element. Like Costs of Mega Corporation are higher as compared to My small company on the basis of percentage sales, For Mega corporation Costs are 71.43% of Sales and that of My Small Company are 62.50% of Sales. In this way we can analyse all the various points.
Hope I am able to solve your concern. If you are satisfied hit a thumbs up !!
jeff jeffy answered 1 year agoRelated Solutions
Common size statements: the following are income statements for Lowe's and Home depot for the years...
Common size statements: the following are income statements for
Lowe's and Home depot for the years ended February 3, 2012 and
January 29, 2012, respectively:
1. The companies do not use exactly the same account titles.
Align the accounts accross two companies int he manner you beleive
to be the most appropriate. Then prepare common-size income
statemens for Lowe's and The Home Depot.
2. Compare the two companies by using the common-size
statements.
The income statements for the two companies...
Common-size financial statements. Prepare common-size income statements for Walmart and Starbucks using the January 2015 and...
Common-size financial statements. Prepare common-size
income statements for Walmart and Starbucks using the January 2015
and September 2014 information in the popup window:
LOADING...
. Which company is doing a better job of getting sales dollars
to net income? Where is the one company having an advantage over
the other company in turning revenue into net income?
Complete the table below: (Round to two decimal places. Net
income to three decimal places.)
Abbreviated Income Statements ($ in
Millions)
Company
Walmart,...
Common-size financial statements. Prepare common-size income statements for Walmart and Starbucks using the January 2015 and...
Common-size financial statements. Prepare common-size income
statements for Walmart and Starbucks using the January 2015 and
September 2014 information in the popup window: Which company is
doing a better job of getting sales dollars to net income? Where
is the one company having an advantage over the other company in
turning revenue into net income?
Complete the table below: (Round to two decimal places. Net
income to three decimal places.)
Abbreviated Income Statements ($ in
Millions)
Company
Walmart, Inc.
Starbucks...
Common-size financial statements. Prepare common-size income statements for Walmart and Starbucks using the January 2015 and...
Common-size financial statements. Prepare common-size income
statements for Walmart and Starbucks using the January 2015 and
September 2014 information in the popup window:
LOADING...
. Which company is doing a better job of getting sales dollars
to net income? Where is the one company having an advantage over
the other company in turning revenue into net income?
Complete the table below: (Round to two decimal places. Net
income to three decimal places.)
Abbreviated Income Statements ($ in
Millions)
Company
Walmart,...
Based on these Common-size Income Statements for Nike for the periods shown, which of the following...
Based on these Common-size Income Statements for Nike for the
periods shown, which of the following statements is most
accurate?
Annual Income Statement (Values in Millions)
2015
2014
2013
2012
2011
Sales
100.0%
100.0%
100.0%
100.0%
100.0%
Cost of Sales
53.4%
54.6%
56.6%
57.9%
58.7%
Gross Profit
46.6%
45.4%
43.4%
42.1%
41.3%
S, G & A Expense
30.7%
30.2%
29.3%
28.5%
28.3%
Deprec & Amort
2.1%
2.5%
2.5%
2.8%
2.3%
Operating Income
13.8%
12.6%
11.6%
10.8%
10.7%
Interest Expense
0.3%...
prepare a common size income statement from the following income statement: CONSOLIDATED STATEMENTS OF OPERATIONS -...
prepare a common size income statement from the following income
statement:
CONSOLIDATED STATEMENTS OF OPERATIONS - USD
($)
12 Months Ended
shares in Millions, $ in Millions
Feb. 01, 2020
Feb. 02, 2019
Feb. 03, 2018
Total net
sales
$10,716
$11,664
$12,554
Credit
income and other
451
355
319
Total
revenues
11,167
12,019
12,873
Costs and
expenses/(income):
Cost of
goods sold (exclusive of depreciation and amortization shown
separately below)
7,013
7,870
8,208
Selling,
general and administrative (SG&A)
3,585
3,596
3,845...
Common-Size and Pro Forma Income Statements Refer to the income statements for The Gap, Inc., presented...
Common-Size and Pro Forma Income
Statements
Refer to the income statements for The Gap, Inc., presented
below.
a. Prepare common-size income statements for fiscal years 2014
(ending January 31, 2015) and 2013 (ending February 1, 2014).
Round answers to one decimal place (i.e., 0.2568 = 25.7%).
The Gap, Inc.
Common-Size Income Statements
Fiscal year ended
Jan. 31, 2015
Feb. 1, 2014
Net sales
$15,779
Answer%
$15,492
Answer%
Cost of goods sold & occupancy expenses
9,925
Answer%
9,634
Answer%
Gross profit...
Common-Size Income Statements and Horizontal Analysis Income statements for Mariners Corp. for the past two years...
Common-Size Income Statements and Horizontal Analysis
Income statements for Mariners Corp. for the past two years are
as follows:
(amounts in thousands
of dollars)
2017
2016
Sales revenue
$60,000
$50,000
Cost of goods sold
42,000
30,000
Gross profit
$18,000
$20,000
Selling and administrative expense
9,000
5,000
Operating income
$9,000
$15,000
Interest expense
2,000
2,000
Income before tax
$7,000
$13,000
Income tax expense
2,000
4,000
Net income
$5,000
$9,000
Required:
1. Using the format in Example 13-5, prepare
common-size comparative income...
Common-Size Income Statements and Horizontal Analysis Income statements for Mariners Corp. for the past two years...
Common-Size Income Statements and Horizontal Analysis
Income statements for Mariners Corp. for the past two years are
as follows:
(amounts in thousands
of dollars)
2017
2016
Sales revenue
$60,000
$50,000
Cost of goods sold
42,000
30,000
Gross profit
$18,000
$20,000
Selling and administrative expense
9,000
5,000
Operating income
$9,000
$15,000
Interest expense
2,000
2,000
Income before tax
$7,000
$13,000
Income tax expense
2,000
4,000
Net income
$5,000
$9,000
Required:
1. Using the format in Example 13-5, prepare
common-size comparative income...
Common-Size Income Statements and Horizontal Analysis Income statements for Mariners Corp. for the past two years...
Common-Size Income Statements and Horizontal Analysis
Income statements for Mariners Corp. for the past two years are
as follows:
(amounts in thousands
of dollars)
2017
2016
Sales revenue
$60,000
$50,000
Cost of goods sold
42,000
30,000
Gross profit
$18,000
$20,000
Selling and administrative expense
9,000
5,000
Operating income
$9,000
$15,000
Interest expense
2,000
2,000
Income before tax
$7,000
$13,000
Income tax expense
2,000
4,000
Net income
$5,000
$9,000
Required:
1. Using the format in Example 13-5, prepare
common-size comparative income...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Module 2 Course Work 1. Read Pages 12-30. 2. Use the week 1 video's and this...
- 6. Solve the following recurrence relations t(n) = t(n-1) + 3 for n>1 t(1) = 0...
- In C programming using C11 library, how can we validate command line arguments? meaning for example...
- In Java Create a class called "TestZoo" that holds your main method. Write the code in...
- You are interested in buying a house and renting it out. You expect to receive a...
- A C corporation earns $10 per share before taxes. After it has paid taxes, it will...
- Using Hirschi’s Social Bond theory as your frame of reference, discuss the major ideas behind this...
ADVERTISEMENT