Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A condensed income statement for Interactive Arts and a partially completed vertical analysis follow. Required: 1. Complete the vertical analysis by computing each missing line
A condensed income statement for Interactive Arts and a partially completed vertical analysis follow. Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of net revenues. TIP: In the prior year (2015). Cost of Goods Sold was 32 percent of Net Revenues, computed as ($1.425 - $4,518). (If the percentage is a loss, enter the amount with a negative sign in front of it. Round your answers to the nearest whole percent.) INTERACTIVE ARTS Income Statement (summarized) For the Year Ended March 31 (in millions of U.S. dollars) 2016 Net Revenues $ 4,379 100 % Cost of Goods Sold 1,344 Research and Development Expense 1,113 Sales and Marketing Expense 790 General and Administrative Expense 408 9 Income from Operations 724 17 Other Expenses 19 0 2015 $ 4518 1.425 1,094 655 383 961 27 100% 32 24 14 8 21 Help 1,113 790 408 724 24 14 Research and Development Expense Sales and Marketing Expense General and Administrative Expense Income from Operations Other Expenses Income before Income Tax Income Tax Recovery (Expense) Net Income 1,094 655 383 961 9 8 17 21 19 1 0 16 705 283 988 27 934 (47) 887 6 21 (1) 20% $ % $ 2. Does interactive Arts 2016 Cost of Goods Sold, as a percentage of Net Revenues, represent better or worse performance as compared to 2015? Better Worse
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started