Refer to the calculations from M13-1. What are the two most significant year-over-year changes in terms of
Question:
Refer to the calculations from M13-1. What are the two most significant year-over-year changes in terms of dollars and in terms of percentages? Give one potential cause of each of these changes.
Transcribed Image Text:
LOCKEY FENCING CORPORATION Income Statements For the Years Ended December 31 2017 2016 Net Sales $100,000 $75,000 Cost of Goods Sold 58,000 45,000 Gross Profit 42,000 30,000 Selling, General, and Administrative Expenses 9,000 4,500 Income from Operations 33,000 25,500 Interest Expense 3,000 3,750 Income Before Income Tax 30,000 21,750 Income Tax Expense 9,000 6,525 Net Income $ 21,000 $15,225
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
The two most significant yearoveryear changes in terms of dollar amounts are the increase in net ...View the full answer
Answered By
Rodrigo Louie Rey
I started tutoring in college and have been doing it for about eight years now. I enjoy it because I love to help others learn and expand their understanding of the world. I thoroughly enjoy the "ah-ha" moments that my students have. Interests I enjoy hiking, kayaking, and spending time with my family and friends. Ideal Study Location I prefer to tutor in a quiet place so that my students can focus on what they are learning.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259269868
5th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
Question Posted:
Students also viewed these Business questions
-
What are the two most abundant igneous rocks?
-
What are the two most important factors an accountant must estimate in the capital investment decision?
-
In your opinion, what are the two most important arguments in favor of allowing IFRS for U.S. public companies?
-
If y=tan-13/t^2 find dy/dt
-
You are trying to determine the KM for an enzyme. Due to a lab mishap, you have only two usable data points: Use these data to calculate an approximate value for KM. Is this value likely to be an...
-
What is the major shortcoming of using operating income as a performance measure for investment centers?
-
Describe the changes that have taken place in share trading venues over the past decade.
-
Cepeda Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances. In addition, 8,000 units of product were sold at $8.00 per unit....
-
Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown...
-
A metal bar is in the xy-plane with one end of the bar at the origin. A force F = (7.00 N)i + (3.00 N)j is applied to the bar at the point x = 3.00 m, y = 4.00 m. (a) In terms of unit vectors i and...
-
You plan to retire in twenty years. Calculate whether it is better for you to save $25,000 a year for the last ten years before retirement or $15,000 for each of the twenty years. Assume you are able...
-
A manufacturer reported an inventory turnover ratio of 8.6 during 2016. During 2017, management introduced a new inventory control system that was expected to reduce average inventory levels by 25...
-
A bond with 20 detachable warrants has just been offered for sale at $100. The bond matures in 25 years and has an annual coupon of $5.5. Each warrant gives the owner the right to purchase two shares...
-
Discuss the intricacies of process scheduling algorithms in multiprocessor systems, highlighting the complexities of load balancing and thread migration strategies.
-
Yana owns a small business selling e-sports accessories. Her balance sheet at the end of last year showed retained earnings of $11,230. The following facts relate to Yana's activities this year. Yana...
-
A store sells yogurt in small, medium, and large sizes. A small yogurt costs $2, a medium costs $3, and a large costs $5. In one hour, the shop sold 27 yogurts for $98. There were five more large...
-
Do you consider computers to possess intelligence? Why or why not? Are you worried about how your career plans might be affected by machine learning and AI? What do you think it means for global...
-
demonstrate how four of the seven marketing mix elements the Premier Inn Hotel UK has used in the UK since 2019 reflect how it divides the market (Segmentation), who it is seeking to serve...
-
Discuss the need to monitor expenses related to the response, continuity and recovery to an incident. How is this need best accomplished? How would it be different under the Incident Command System?
-
The comparative statements of financial position of Menachem NV at the beginning and end of the year 2019 appear below. Net income of ¬34,000 was reported, and dividends of ¬23,000 were paid...
-
After merging with Northwest Airlines, Delta Airlines increased the estimated useful life and increased the estimated residual value of its flight equipment. All else equal, how will each of these...
-
A local politician claimed, to reduce the governments deficit, its time we require companies to start paying their deferred income tax liabilities.Explain to the politician what deferred income taxes...
-
What is book value? When equipment is sold for more than book value, how is the transaction recorded? How is it recorded when the selling price is less than book value?
-
You purchased a machine for $1.12 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 21%. If you sell the machine today (afte...
-
Problem 4 - 1 0 Continuous Compounding a . Compute the future value of $ 2 , 5 0 0 continuously compounded for 6 years at an APR of 1 1 percent. ( Do not round intermediate calculations and round...
-
V15 XV fx A B C D E LL F G H J K L M N 0 P 1 Di $5.00 2 51 10% 3 Terminal growth 5% 4 ROE 12% 5 Payout Ratio 30.00% 6 7 Priceo $250.00 8 Price $71.43 t 0 1 2 3 4 5 9 Dividend 0 $5.00 10 11 12 13 14...
Study smarter with the SolutionInn App