Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative income statement data for Crane Inc and Pronghorn Ltd., two competitors, are shown below for the year ended December 31, 2021. Net sales Cost

image text in transcribedimage text in transcribedimage text in transcribed

Comparative income statement data for Crane Inc and Pronghorn Ltd., two competitors, are shown below for the year ended December 31, 2021. Net sales Cost of goods sold Gross profit Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit Crane $1,770,000 1,033,680 736,320 477,900 258,420 6,880 251.540 75,462 $176,078 Pronghorn $527,000 327,267 199,733 85,374 114,359 1.252 113.107 28,277 $84.830 Additional information: Average total assets Average total shareholders' equity $963,000 756,000 $319,563 217,808 Using vertical analysis, calculate the percentage of the base amount of the income statement for each company. (Round answers to 1 decimal place, e.g. 12.5%.) CRANE AND PRONGHORN COMPANIES Income Statements Crane Percent Pronghorn Percent Net sales Cost of goods sold % % Gross profit % Operating expenses % % % % Profit from operations Interest expense % % Profit before income tax % Income tax expense % % Profit % % Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on equity ratios for 2021 for each company. (Round answers to 1 decimal place, e.g. 12.5 or 12.5%.) Pronghorn Gross Profit Margin % Crane Profit Margin % Asset Turnover times times Return on Assets % Return on Equity % %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services Plus Pearson MyLab Accounting With Pearson EText

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

17th Global Edition

1292312106, 978-1292312101

More Books

Students also viewed these Accounting questions

Question

what is Chegg AI ? Note:If you are using AI , I will give u dislike

Answered: 1 week ago