Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 12, Problem 12.14S
Requirement – 1
To determine
The amount of gross profit, income from continuing operation and net income of Company K.
Requirement – 2
To determine
To identify: The income which is used to predict net income of Company K for 2019.
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Compute the component percentages for Trixy Magic's income statement below. (Enter your answers as a percentage rounded to 2
decimal place (l.e. 0.1234 should be entered as 12.34). Enter all answers as positive values.)
TRIXY MAGIC, INC.
Consolidated Statements of Earnings
(In millions)
Fiscal Years Ended on
Fiscal 2018
% Sales
Fiscal 2017
% Sales
Fiscal 2016
% Sales
Net sales
48,232
100.00 %
$.
48,290
100.00 %
46,938
100.00 %
Cost of sales
31,748
34.17
31,567
34.63
30,741
34.51
Gross margin
16,484
65.83
16,723
65.37
16,197
65.49
Expenses:
Selling, general, and administrative
11,087
10,525
9,750
Depreciation
1,559
1,368
1,173
Interest-net
284
195
159
12,930
0.00
12,088
2.83
11,082
0.00
Total expenses
Pre-tax earnings
3,554
65.83
4,635
62.54
5,115
65.49
1,324
1,710
1,899
Income tax provision
S.
2,230
65.83 %
2,925
62.54 %
3,216
65.49 %
Net earnings
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%24
%24
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%24
4. The following common size income statement are available for Gaea
Corporation for the two years ended December 2019, and 2018
2019
2018
Sales
100%
100%
Cost of sales
55%
70%
Gross profit on sales
45%
30%
Operating
(including income tax
expense)
expenses
20%
18%
25%
12%
Net income
The trend percentages for sales are as follows:
2017
130%
100%
2016
What should be the trend percentage for gross profit on sales for 2019
A. 58.5%
В. 130%
С. 150%
D. 195%
Answer:
Test Company (S millions)
Income Statement
Revenues
Cost of Goods Sold
Operating Income
Interest Expenses
Net Income
2016
2017
2018
126,034
51,556
27,414
4,733
131,650
125,980
52,557
51,424
27,059
4,376
33,060
4,920
You will receive company financials in class for assignment. Analysis
17,879
13,127
30,101
the company's financial condition:
Balance Sheet
Current Assets
Cash & Cash Equivalents
Receivables
Inventory
1) liquidity
22,355
4,820
29,913
2,079
23,493
26,395
2,880
13,457
17,513
1,202
2) asset management
1,252
1,034
33,037
3) profitability
Current Liabilities
Payables
35,052
19,362
30,340
19,593
21,232
4) leverage
Long-term Debt
Shareolders Equity
Total Assets
103,240
17,842
105,433
113,642
24,032
44,687
244,175
244,180
257,143
5) overall financial condition a debt and equity investor
Other Data
44,368
17,830
EBITDA
42.987
Capital Expenditures
49,077
27,717
17,593
Company Stock Price
Beta
Dividend Payout Ratio
Estimated Long-term Growth
Common Shares Outstanding
10-year U.S.…
Chapter 12 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Prob. 4QCCh. 12 - Expressing accounts receivable as a percentage of...Ch. 12 - Kincaid Company reported the following data (in...Ch. 12 - Prob. 7QCCh. 12 - Ratios that measure liquidity include all of the...Ch. 12 - Verba Corporation has an inventory turnover of 15...Ch. 12 - The measure of a companys ability to collect cash...
Ch. 12 - A ratio that measures a companys profitability is...Ch. 12 - Prob. 12QCCh. 12 - Prob. 13QCCh. 12 - Prob. 14QCCh. 12 - Prob. 12.1ECCh. 12 - Prob. 12.1SCh. 12 - Prob. 12.2SCh. 12 - Prob. 12.3SCh. 12 - Prob. 12.4SCh. 12 - Prob. 12.5SCh. 12 - (Learning Objective 4: Evaluate a companys quick...Ch. 12 - Prob. 12.7SCh. 12 - (Learning Objective 4: Measure ability to pay...Ch. 12 - (Learning Objective 4: Measure profitability using...Ch. 12 - Prob. 12.10SCh. 12 - (Learning Objective 4: Use ratio data to...Ch. 12 - Prob. 12.12SCh. 12 - (Learning Objective 4: Analyze a company based on...Ch. 12 - Prob. 12.14SCh. 12 - Prob. 12.15SCh. 12 - Prob. 12.16AECh. 12 - Prob. 12.17AECh. 12 - Prob. 12.18AECh. 12 - Prob. 12.19AECh. 12 - Prob. 12.20AECh. 12 - Prob. 12.21AECh. 12 - Prob. 12.22AECh. 12 - Prob. 12.23AECh. 12 - Prob. 12.24AECh. 12 - Prob. 12.25AECh. 12 - Prob. 12.26AECh. 12 - Prob. 12.27BECh. 12 - Prob. 12.28BECh. 12 - Prob. 12.29BECh. 12 - Prob. 12.30BECh. 12 - Prob. 12.31BECh. 12 - LO 4 (Learning Objective 4: Calculate ratios;...Ch. 12 - Prob. 12.33BECh. 12 - Prob. 12.34BECh. 12 - Prob. 12.35BECh. 12 - Prob. 12.36BECh. 12 - Prob. 12.37BECh. 12 - Prob. 12.38QCh. 12 - Prob. 12.39QCh. 12 - Prob. 12.40QCh. 12 - Prob. 12.41QCh. 12 - Prob. 12.42QCh. 12 - Prob. 12.43QCh. 12 - Prob. 12.44QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.46QCh. 12 - Use the Orlando Medical Corporation financial...Ch. 12 - Prob. 12.48QCh. 12 - Prob. 12.49QCh. 12 - Prob. 12.50QCh. 12 - Prob. 12.51QCh. 12 - Prob. 12.52QCh. 12 - Prob. 12.53QCh. 12 - Prob. 12.54QCh. 12 - Prob. 12.55QCh. 12 - LO 1, 2, 4 (Learning Objectives 1, 2, 4: Calculate...Ch. 12 - Prob. 12.57APCh. 12 - Prob. 12.58APCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.60APCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Group B LO 1, 2, 4 (Learning Objectives 1, 2, 4:...Ch. 12 - Prob. 12.63BPCh. 12 - Prob. 12.64BPCh. 12 - LO 4 (Learning Objective 4: Use ratios to evaluate...Ch. 12 - Prob. 12.66BPCh. 12 - LO 2, 4, 5 (Learning Objectives 2, 4, 5: Analyze...Ch. 12 - Prob. 12.68CEPCh. 12 - Prob. 12.69CEPCh. 12 - (Learning Objectives 2, 3.4: Use trend...Ch. 12 - (Learning Objectives 4, 5: Calculate and analyze...Ch. 12 - Prob. 12.72DCCh. 12 - Prob. 12.73DCCh. 12 - Prob. 12.74EICCh. 12 - Focus on Financials Apple Inc. LO 1, 2, 3, 4, 5...Ch. 12 - Comprehensive Financial Statement Analysis Project...
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License