Q1. For Apple Computer, use amounts listed below to complete the trend indexes for Income before income
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Q2. Sales growth was 172% (272–100) from FYE 9-29-2007 to FYE 9-25-2010 with the greatest increase during FYE (_________ / 9-26-09 / 9-27-08 / 9-29-07 ). When sales revenue increases, expenses would be expected to (_________/ stay the same / decrease). It is favorable when sales revenue increases by 172% and expenses increase at a (higher / _________) rate than 172%. If an expense account increases at a rate greater than sales revenue, this indicates costs (were kept under control / _________).
Q3. From FYE 9-29-2007 to FYE 9-25-2010, which of the following expenses increased at a greater rate than sales revenue? (COGS / Operating expenses / _________). For Apple, the most important cost to keep under control is (_________/ operating expenses / provision for income tax). Overall, it appears that Apple costs (_______________/ got out of control).
Q4. The FYE 9-25-2010 trend index for Sales Revenue of 272 is (_________/ less) than 100, indicating the amount for that year is (about the same as / almost double / __________________) the (_________/ previous year) amount. The FYE 9-25-2010 trend index for Net Income of 401 is (_________/ less) than 100, indicating the amount for that year is (about the same as / double / _________) the (_________/ previous year) amount. (Sales revenue / _________) increased at a greater rate, indicating (_________ / expenses) increased at a greater rate from FYE 9-29-2007 to FYE 9-25-2010, which is (_________ / unfavorable).
Q5. The annual revenue growth rate can be compared between companies.
Assume less than 5% is low, 5 to 15% is moderate, and more than 15% is high.
The three-year average revenue growth rate is (low / moderate / _________). (172% / 3 years = 57% >15%
Q6. Compute gross profit margin (Gross profit / Sales revenue) for fiscal years ended:
9-25-2010 _________; 9-26-2009 _________; 9-27-2008 _________; 9-29-2007 33.97%
During this time period the gross profit margin (_________ / decreased), which is a(n) (_________ / unfavorable) trend. What does this trend indicate?
Q7. Compute the Return on Sales (Net income / Sales revenue) for fiscal years ended:
9-25-2010 _________; 9-26-2009 _________; 9-27-2008 _________; 9/29/2007 14.56%
During this time period ROS (_________/ decreased), which is a(n) (_________/ unfavorable) trend. What does this trend indicate?
Q8. Operationally, the best year was FYE (_________ / 9-26-09 / 9-27-08 / 9-29-07). Why? List as many items as you can to support your response.
Q9. Operationally, the worst year was FYE (9-25-10 / 9-26-09 / 9-27-08 / _________). Why? List as many items as you can to support your response.
Q10. It is easier to analyze Apple (before / _________) preparing the trend analysis. Why?
The trend analysis allows the rate of increase to be compared among accounts.
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Related Book For
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman
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