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please answer both for a like 3 Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible
please answer both for a like
3 Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? 0.76 points Income Statement Reason for Decline in Net Income Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) eBook Hint Print GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year 5 % $ % Sales $ 770,000 100,0 $ 665,000 100.0 Cost of goods sold 568,100 284,400 Gross profit 201,900 300,000 Operating expenses 130,400 200,000 Net Income $ 71,500 $ 111,000 References Income state Reason for Decline in Net Income > 4 Simon Company's year-end balance sheets follow. Current To 1 Yr Ago 2 yrs ago 0.76 Dots $ 34,791 101,844 126,781 11.092 315.172 $589,600 $ 40,261 $ 42,362 69,745 57.048 96,865 60.154 10,675 4.001 290, 799 263.535 $ 500,345 $ 427.900 At December 31 Assets Cash Accounts receivable. net Merchandise Inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Connon stock, $10 par value Retained earnings Total liabilities and equity $ 143,894 $ 85,051 58,177 113,077 163,500 169.202 $ 589,680 119,258 91,729 163,500 163,500 140,536 116,494 $ 508,345 $427.900 1. Express the balance sheets in common-size porcents. (Do not round Intermediate calculations and round your final percentage answers to 1 decimal place.) 2. Assuming annual sales have not changed in the last three years, is the change in accounts receivable as a percentage of total assets favorable or unfavorable? 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and Express the balance sheets in common-size percent. (Do not round Intermediate calculations and round your final percentage answers to 1 decimal place.) SIMON COMPANY Common-Site Comparative Balance Sheets December 31 Current Year 1 Year Ago 2 Years Ago 4 3. Assuming annual sales have not changed in the last three years, is the change in merchandise inventory as a percentage of total assets favorable or unfavorable? Answer is not complete 0.76 points Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Express the balance sheets in common-size percents. (Do not round Intermediate calculations and round your final percentage answers to 1 decimal place.) 2 Years Age SIMON COMPANY Common-Site Comparative Balance Sheets December 31 Current Year 1 Year Ago Assets Cash % Accounts receivable, net Merchandise inwentory Prepaid expenses Plant assets.net Total assets % Liabilities and Equity Accounts payable % Long-term notos payable secured by mortgages on plant assets Common stock, $10 par Retained earning Total liabilities and equity 5 RE Reg 2 and 3 > Step by Step Solution
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