1.
Vertical Analysis of Income Statement
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:
| Current Year | Previous Year | |||
| Sales | $517,000 | $460,000 | ||
| Cost of goods sold | 284,350 | 230,000 | ||
| Selling expenses | 93,060 | 92,000 | ||
| Administrative expenses | 98,230 | 82,800 | ||
| Income tax expense | 15,510 | 23,000 | ||
a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.
| Innovation Quarter Inc. | ||||
| Comparative Income Statement | ||||
| For the Years Ended December 31 | ||||
| Current year Amount | Current year Percent | Previous year Amount | Previous year Percent | |
| Sales | $517,000 | % | $460,000 | % |
| Cost of goods sold | 284,350 | % | 230,000 | % |
| ________ | $ | % | $ | % |
| Selling expenses | 93,060 | % | 92,000 | % |
| Administrative expenses | 98,230 | % | 82,800 | % |
| ___________ | $ | % | $ | % |
| ___________ | % | % | ||
| Income tax expense | 15,510 | % | 23,000 | % |
| ___________ | $ | % | $ | % |
b. The vertical analysis indicates that the cost of goods sold as a percent of sales __________ by 5 percentage points, while selling expenses ____________ by 2 percentage points, and administrative expenses ___________ by 1 percentage points. Thus, net income as a percent of sales ________ by 2 percentage points.
2.
Vertical Analysis of Balance Sheet
Balance sheet data for Alvarez Company on December 31, the end of two recent fiscal years, follows:
| Current Year | Previous Year | |||
| Current assets | $295,500 | $169,970 | ||
| Property, plant, and equipment | 591,000 | 546,860 | ||
| Intangible assets | 98,500 | 22,170 | ||
| Current liabilities | 187,150 | 110,850 | ||
| Long-term liabilities | 413,700 | 302,990 | ||
| Common stock | 108,350 | 110,850 | ||
| Retained earnings | 275,800 | 214,310 | ||
Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.
| Alvaraz Company | ||||
| Comparative Balance Sheet | ||||
| For the Years Ended December 31 | ||||
| Current year Amount |
Current year Percent |
Previous year Amount |
Previous year Percent |
|
| Current assets | $295,500 | __% | $169,970 | __% |
| Property, plant, and equipment | 591,000 | __% | 546,860 | __% |
| Intangible assets | 98,500 | __% | 22,170 | __% |
| Total assets | $985,000 | __% | $739,000 | __% |
| Current liabilities | $187,150 | __% | $110,850 | __% |
| Long-term liabilities | 413,700 | __% | 302,990 | __% |
| Common stock | 108,350 | __% | 110,850 | __% |
| Retained earnings | 275,800 | __% | 214,310 | __% |
| Total liabilities and stockholders' equity | $985,000 | __% | $739,000 | __% |
2.
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 | $702,000 | $540,000 | |||
| Cost of goods sold | 588,800 | 460,000 | |||
| Gross profit | $113,200 | $80,000 | |||
| Selling expenses | $33,600 | $28,000 | |||
| Administrative expenses | 30,720 | 24,000 | |||
| Total operating expenses | $64,320 | $52,000 | |||
| Income before income tax | $48,880 | $28,000 | |||
| Income tax expenses | 19,600 | 11,200 | |||
| Net income | $29,280 | $16,800 | |||
a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place.
| Winthrop Company | ||||
| Comparative Income Statement | ||||
| For the Years Ended December 31 | ||||
| Current year Amount |
Previous year Amount |
Increase (Decrease) Amount |
Increase (Decrease) Percent |
|
| Sales | $702,000 | $540,000 | $ | % |
| Cost of goods sold | 588,800 | 460,000 | % | |
| Gross profit | $113,200 | $80,000 | $ | % |
| Selling expenses | $33,600 | $28,000 | $ | % |
| Administrative expenses | 30,720 | 24,000 | % | |
| Total operating expenses | $64,320 | $52,000 | $ | % |
| Income before income tax | $48,880 | $28,000 | $ | % |
| Income tax expense | 19,600 | 11,200 | % | |
| Net income | $29,280 | $16,800 | $ | % |
b. The net income for Winthrop Company increased between years. This increase was the combined result of an ______ in sales and _____ percentage _____ in cost of goods sold. The cost of goods sold increased at a ______ rate than the increase in sales, thus causing the percentage increase in gross profit to be ______ than the percentage increase in sales.
In: Accounting
Cruz Company has gathered the information needed to complete its Form 941 for the quarter ended September 30, 2019.
Using the information presented below, complete Part 1 of Form 941, rounding to the nearest cent.
Hint: Line 7 instructions. Fill in Form 941 through line 6, then fill in Part 2, line 16. Take that information and fill in line 13. Lines 12 and 13 must equal. If the amounts are not the same, correct by entering amount to make equal on line 7. Line 7 differences are caused by how calculations are made on Form 941 and the amounts withheld from employee's earning plus the employer's payroll tax amounts each pay.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In: Accounting
Video Analysis Paper (watch, analyze, agree & disagree)
You are required to submit (see Submit Assignment tab in right hand column) an approximately 1,000 word essay. The essay should include a clear summary and analysis of this CNBC video, entitled "Why The Inequality Gap Is Growing Between Rich And Poor."
https://www.youtube.com/watch?v=41y4c1Oi5Uo&list=PL9Yr7AeheMx94eOF4zT50MXpuDozTxnYU&index=6
Note there are five (5) key points the video makes:
Technological Change
Globalization
Rise of Superstars
Falling Labor
Seizing Advantage
In: Economics
In: Physics
1. What is the index of refraction of a material for which the wavelength of light is 0.83 times its value in a vacuum?
2. A diffraction grating has 2400 lines per centimeter. At what angle in degrees will the third-order maximum be for 636 nm wavelength light?
3. What is m for the highest-order maximum for 462 nm light falling on double slits separated by 19.5 μm? Remember, m can only be an integer.
Plz answer all, don't have money for more questions. will give thumbs up in appreciation :)
In: Physics
ASSIGNMENT 2
In: Economics
The heights of 1000 students are approximately
normally distributed with a mean of 174.5 centimeters
and standard deviation is unknown. Suppose
200 random samples of size 25 are drawn from this population
and the means recorded to the nearest tenth of
a centimeter.
with n=6 and assume the true σ is unknown and S=7.5 centimeters instead
Determine
(a) the mean and standard deviation of the sampling
distribution of ¯X ;
(b) the number of sample means that fall between 172.5
and 175.8 centimeters inclusive;
(c) the number of sample means falling below 172.0
centimeters.
In: Statistics and Probability
Show all your work (use of formula, etc.) in solving the problems. You still need to show your work even if you use the financial calculator to get the answers.
5. Rizzi Co. is growing quickly. The company just paid a $1.6 per share dividend and dividends are expected to grow at a 25%, 15% and 10% rate respectively for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 11 percent, what is the current share price?
In: Finance
9. a) You are an angel investor and you invested in a series of startups in the FinTech space. Two of your portfolio companies appear to have exactly the same target market. What would you advise?
b) One of your portfolio startups is not meeting its growth targets and is falling behind the expected month-on-month customer growth rate. Your investment is conditional on meeting growth targets and the quarterly tranches tied to these targets. The startup is also facing cash flow issues. What do you do?
In: Operations Management
A. Explain what external and internal economies of scale are and why the supply curve in their case is shaped as “forward-falling”. B. What may cause one country to have an initial advantage from having a lower price? Discuss and give an example. C. Define what increasing returns to scale represents in the context of a production function. D. Can trade hurt a country when there are external economies of scale? Give an example with a 2-country 2-good model and illustrate in a graph to prove your point.
In: Economics