Vertical Analysis of Income Statement
For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $16,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:
| Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 |
|||
| 20Y2 | 20Y1 | ||
| Sales | $575,000 | $495,000 | |
| Cost of goods sold | 281,750 | 267,300 | |
| Gross profit | $293,250 | $227,700 | |
| Selling expenses | $109,250 | $89,100 | |
| Administrative expenses | 57,500 | 59,400 | |
| Total operating expenses | $166,750 | $148,500 | |
| Income from operations | $126,500 | $79,200 | |
| Other revenue | 17,250 | 19,800 | |
| Income before income tax | $143,750 | $99,000 | |
| Income tax expense | 57,500 | 39,600 | |
| Net income | $86,250 | $59,400 | |
Required:
1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.
| Tri-Comic Company | ||||
| Comparative Income Statement | ||||
| For the Years Ended December 31, 20Y2 and 20Y1 | ||||
| 20Y2 Amount | 20Y2 Percent | 20Y1 Amount | 20Y1 Percent | |
| Sales | $575,000 | % | $495,000 | % |
| Cost of goods sold | 281,750 | % | 267,300 | % |
| Gross profit | $293,250 | % | $227,700 | % |
| Selling expenses | $109,250 | % | $89,100 | % |
| Administrative expenses | 57,500 | % | 59,400 | % |
| Total operating expenses | $166,750 | % | $148,500 | % |
| Income from operations | $126,500 | % | $79,200 | % |
| Other revenue | 17,250 | % | 19,800 | % |
| Income before income tax | $143,750 | % | $99,000 | % |
| Income tax expense | 57,500 | % | 39,600 | % |
| Net income | $86,250 | % | $59,400 | % |
2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales . The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.
In: Accounting
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:
| Units in beginning inventory | 410 |
| Units started into production | 4,310 |
| Units in ending inventory | 310 |
| Units transferred to the next department | 4,410 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 60 | % | 40 | % |
| Percentage completion of ending inventory | 90 | % | 30 | % |
The cost of beginning inventory according to the company’s costing system was $7,830 of which $4,824 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $184,110. The costs per equivalent unit for the month were:
| Materials | Conversion | |
| Cost per equivalent unit | $18.00 | $24.00 |
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
Complete this question by entering your answers in the tabs below.
Compute the total cost per equivalent unit for the month. (Round your answer to 2 decimal places.)
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Complete this question by entering your answers in the tabs below.
Compute the equivalent units of material and conversion in the ending inventory.
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Complete this question by entering your answers in the tabs below.
Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
|
Complete this question by entering your answers in the tabs below.
Compute the number of units started and completed during the month.
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Compute the cost of ending work in process inventory for materials, conversion, and in total for the month. (Round your intermediate calculations to 2 decimal places.)
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Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month. (Round your intermediate calculations to 2 decimal places.)
|
In: Accounting
A Genetic experiment with peas resulted in one sample of offspring that consisted of 430 green peas and 159 yellow peas.
A) Construct a 95% confidence interval. Express the percentages in decimal form.
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B) Given that the percentage of offspring yellow peas is not 25%, do the results contradict expectations?
1 No, the confidence interval includes 0.25, so the true percentage could easily equal 25%
2 Yes, the confidence interval does not include 0.25, so the true percentage could not equal 25%
In: Statistics and Probability
The weight of an organ in adult males has a bell-shaped distribution with a mean of 350 grams and a standard deviation of 35 grams. Use the empirical rule to determine the following. (a) About 99.7 of organs will be between what weights? (b) What percentage of organs weighs between 280 grams and 420 grams? (c) What percentage of organs weighs less than 280 grams or more than 420 grams? (d) What percentage of organs weighs between 245 grams and 385 grams?
In: Statistics and Probability
A line of high-end tires produced by a large company has a wear-out life that can be modeled using a normal distribution with a mean of 25,000 miles and a standard of 2,000 miles. Determine each of the following a- -The percentage of tires that can be expected to wear-out within +or- (plus or minus) 2,000 miles of the average (for example between 23,000 miles and 27,000) b- -The percentage of tires that can be expected to fail between 26,000 miles and 29,000 miles Note: the term percentage refers to a probability
In: Statistics and Probability
Using the American presidential election data from 1948-2016 (N
= 18) on the percentage of the major 2-
party vote received by the presidential candidate of the incumbent
party, Incvte2, and the percentage
change in real GDP during the 12 months prior to the election,
"Pcrgdp", you find that the correlation
coefficient for Incvte2 and Pcrgdp is 0.535.
a) What percentage of the variation in "Incvte2" is attributable to
variation in "Pcrgdp"? [6 points]
b) Test the null hypothesis of statistical independence between
"Incvte2" and "Pcrgdp" at the 1%
significance level.
In: Statistics and Probability
The weight of an organ in adult males has a bell-shaped distribution with a mean of
320
grams and a standard deviation of
15
grams. Use the empirical rule to determine the following.
(a) About
95%
of organs will be between what weights?
(b) What percentage of organs weighs between
305
grams and
335
grams?
(c) What percentage of organs weighs less than
305
grams or more than
335
grams?
(d) What percentage of organs weighs between
290
grams and
335
grams?
In: Statistics and Probability
The weight of an organ in adult males has a bell-shaped distribution with a mean of 330 grams and a standard deviation of 20 grams. Use the empirical rule to determine the following.
(a) About 95% of organs will be between what weights?
(b) What percentage of organs weighs between 270 grams and 390 grams?
(c) What percentage of organs weighs less than 270 grams or more than 390 grams?
(d) What percentage of organs weighs between 310 grams and 390 grams?
In: Statistics and Probability
The weight of topsoil sold in a week is normally distributed with a mean of 1600 tons and a standard deviation of 32 tons. (a) What percentage of weeks will sales exceed 1648 tons? (Round your answer to two decimal places.) % (b) What percentage of weeks will sales be less than 1568 tons? (Round your answer to two decimal places.) % (c) What percentage of weeks will sales be between 1536 and 1648 tons? (Round your answer to two decimal places.)
In: Statistics and Probability
The weight of an organ in adult males has a bell-shaped distribution with a mean of 340 grams and a standard deviation of 40 grams. Use the empirical rule to determine the following.
(a) About 95% of organs will be between what weights?
(b) What percentage of organs weighs between 220 grams and 460 grams?
(c) What percentage of organs weighs less than 220 grams or more than 460 grams?
(d) What percentage of organs weighs between 220 grams and 380 grams?
In: Statistics and Probability