Question
Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis Scherer Company provided the following income statements for its first 3 years of operation: Scherer
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Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis
Scherer Company provided the following income statements for its first 3 years of operation:
Scherer Company Income Statements Years of Operation Year 1 Year 2 Year 3 Net sales $1,000,000.00 $1,100,000.00 $1,300,000.00 Less: Cost of goods sold (300,000.00) (310,000.00) (364,000.00) Gross margin $700,000.00 $790,000.00 $936,000.00 Less: Operating expenses (421,000.00) (484,000.00) (591,000.00) Income taxes (111,600.00) (122,400.00) (137,800.00) Net income $167,400.00 $183,600.00 $206,200.00
Required: Prepare common-size income statements by using Year 1 as the base period. (Note: Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage.)
Scherer Company Common-Size Income Statements Years of Operation Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Dollars Percentage Dollars Percentage Dollars Percentage Net sales $1,000,000 fill in the blank 1% 1,100,000 fill in the blank 2% $1,300,000 fill in the blank 3% Less: Cost of goods sold (300,000) fill in the blank 4 (310,000) fill in the blank 5 (364,000) fill in the blank 6 Gross margin $700,000 fill in the blank 7 $790,000 fill in the blank 8 $936,000 fill in the blank 9 Less: Operating expenses (421,000) fill in the blank 10 (484,000) fill in the blank 11 (591,000) fill in the blank 12 Income taxes (111,600) fill in the blank 13 (122,400) fill in the blank 14 (137,800) fill in the blank 15 Net income $167,400 fill in the blank 16 $183,600 fill in the blank 17 $206,200 fill in the blank 18
Preparing Common-Size Income Statements by Using Base Period Horizontal Analysis
Scherer Company provided the following income statements for its first 3 years of operation:
| Scherer Company Income Statements Years of Operation | |||
| Year 1 | Year 2 | Year 3 | |
| Net sales | $1,000,000.00 | $1,100,000.00 | $1,300,000.00 |
| Less: Cost of goods sold | (300,000.00) | (310,000.00) | (364,000.00) |
| Gross margin | $700,000.00 | $790,000.00 | $936,000.00 |
| Less: | |||
| Operating expenses | (421,000.00) | (484,000.00) | (591,000.00) |
| Income taxes | (111,600.00) | (122,400.00) | (137,800.00) |
| Net income | $167,400.00 | $183,600.00 | $206,200.00 |
Prepare common-size income statements by using Year 1 as the base period. (Note: Enter all amounts as positive numbers, except for a net loss. Enter net loss as a negative number, if applicable. Round answers to the nearest whole percentage.)
| Scherer Company | ||||||
| Common-Size Income Statements | ||||||
| Years of Operation | ||||||
| Year 1 | Year 1 | Year 2 | Year 2 | Year 3 | Year 3 | |
| Dollars | Percentage | Dollars | Percentage | Dollars | Percentage | |
| Net sales | $1,000,000 | fill in the blank 1% | 1,100,000 | fill in the blank 2% | $1,300,000 | fill in the blank 3% |
| Less: Cost of goods sold | (300,000) | fill in the blank 4 | (310,000) | fill in the blank 5 | (364,000) | fill in the blank 6 |
| Gross margin | $700,000 | fill in the blank 7 | $790,000 | fill in the blank 8 | $936,000 | fill in the blank 9 |
| Less: | ||||||
| Operating expenses | (421,000) | fill in the blank 10 | (484,000) | fill in the blank 11 | (591,000) | fill in the blank 12 |
| Income taxes | (111,600) | fill in the blank 13 | (122,400) | fill in the blank 14 | (137,800) | fill in the blank 15 |
| Net income | $167,400 | fill in the blank 16 | $183,600 | fill in the blank 17 | $206,200 | fill in the blank 18 |
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Research On Professional Responsibility And Ethics In Accounting Volume 24
Authors: Charles Richard Baker
1st Edition
180071758X, 9781800717589
