oo0o T-Mobile LTE 1:21 PM Read from Here ?Back Purpove Prepare common-size statements and understand the information provided The common-size income statement compares all amounts to revenues. The analysis measures each item as a percentage of revenue. For Lenovo and Hewlett Packard companies listed below, complete the common-size statements by dividing each item on the income statement by sales revenue. Record the resulting common-size percentage in the shaded area provided Q1 Hewlett Packard DELL DELLI 1/30/2011 Fiscal year ended 3/31/2010 10/31/2010 Amount 16,605 14,815 Gross profit1,790 C8%-1 Amount. C5%| Amount _%| $ 61,494| 100.0%| $ 126,033 | 9,089 S in Sales revenue % | SO,0981 11.396 Cost of goods sold (COGS) 81.5% 18.5%| 29,944 29 12,585 -96- 1,406 I-% 7,234| 11.9% 657 | 10% Selling, Gen Adm expenses Research and development Other expenses Operating income 2145 2.959 34 41 47 130 136 | 55% 11,479 - 3.505 | 155) 3350| 715 | 2,635 | 10,974 2.213 Income before income tax Provision for income tax Income from continuing 55% 1.2% 4.3% 0.0% 8,761 |-% 01 5 130 Refer to the information above to answer the following questions 02 The greatest amount of sales revenue was reported by (LNVGY/DELL / HPQ) and the greatest net income was reported by (LNVGF/DELL/HPO) which would be lexpected/unexpected. 03 The company that reported the highest ratio for: a Gross profit margin LNVGY/DELL/HPO I NVGY / DELL / HP) Operating income as a percentage of sales? b. d. A higher/lower) profitability ratio is preferred. The compamy that reported the greotest percentage of expense for: a CoGS (LNVGY/ DELL/HPO), which is considered (favorable/unfavorable) Why? LNVGY /DELL /HPO 04 b. SGA (LNVGY/DELL/HPa), which is considered (favorable/unfavorable). Why? R&D (LNVGY/DELL /HPQ). which is considered (favorable /unfavorable). Why? 90 Reader Contents Notebook Bookmarks Figures