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Identify the 3 accounts that represent the highest percentage of Sales revenue using information below and determine the benefits and/or challenges the magnitude of these
Identify the 3 accounts that represent the highest percentage of Sales revenue using information below and determine the benefits and/or challenges the magnitude of these accounts poses for the company:
ABC, Corporation | |||||||
Income Statement | |||||||
Fiscal year ended (FYE) | 9/25/2020 | 9/26/2019 | 9/27/2018 | ||||
Amount | Trend (%) | Amount | Trend (%) | Amount | Trend (%) | ||
Sales revenue | 65,225 | 42,905 | 37,491 | ||||
Cost of goods sold | 39,541 | 25,683 | 24,294 | ||||
Gross profit | 25,684 | 17,222 | 13,197 | ||||
Operating expenses | 7,299 | 5,482 | 4,870 | ||||
Operating Income | 18,385 | 11,740 | 8,327 | ||||
Nonoperating revenues (expenses) | 155 | 326 | 620 | ||||
Income before income tax | 18,540 | 12,066 | 8,947 | ||||
Provision for income tax | 4,527 | 3,831 | 2,828 | ||||
Income from continuing operations | 14,013 | 8,235 | 6,119 | ||||
Nonrecurring items | 0 | 0 | 0 | ||||
Net income | 14,013 | 8,235 | 6,119 | ||||
Identify the 3 accounts that represent the highest percentage of Sales revenue | |||||||
Account name | % | ||||||
Do you see any benefits or challenges for the company because of the magnitude (size) of these accounts? |
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