Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help making a comparitive common size income, as well as the questions below. the numbers are in millions of dollars. For your company, copy
need help making a comparitive common size income, as well as the questions below. the numbers are in millions of dollars.
For your company, copy the Statement of income for the three years listed on the annual report. Then prepare a common-size comparative trend 5 report for the three years presented in the annual report. Use net sales/Revenups as your base number. Be sure to include a gross profit fine after your cost of goods sold/cost of sales. You may need to calculate this if the compary's income statement does not list a gross profit. 4 Income Statement Analysis Using the comparative common size trend report created in step 2, answer the following questions: What trend do you see with Net Sales/Revenues? 7 s What trend do you see with Cost of Goods Sold/Sales? 9 10 What trends do you see in Gross Profit? is the change in gross profit due to change in revenue or cost of goods sold? 11 12 What trends do you see in the company's expenses? How are the expense trends impacting operating income? 13 14 Net income What trends do you see in Net Income? Looking over the answers to your questions above, what factor is contributing the most to the change in net income; revenue, cost of goods sold, 15 or changes in operating expenses Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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