The following information was developed from the financial statements of Donelson, Inc. At the beginning of 2018,
Question:
Instructions
a. Compute the net sales for each year.
b. Compute the cost of goods sold in dollars and as a percentage of net sales for each year.
c. Compute operating expenses in dollars and as a percentage of net sales for each year. (Income taxes expense is not an operating expense.)
d. Prepare a condensed comparative income statement for 2017 and 2018. Include the following items: net sales, cost of goods sold, gross profit, operating expenses, income before income tax, income taxes expense, and net income. Omit earnings per share statistics.
e. Identify the significant favorable and unfavorable trends in the performance of Donelson, Inc.
Comment on any unusual changes.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello