Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales revenue ($35,000,000) 100.0% Less: Cost of goods sold 65.9 Gross profits 34.1% Less: Operating expenses Selling expense 12.7% General and administrative expenses 6.3 Lease

Sales revenue ($35,000,000) 100.0%

Less: Cost of goods sold 65.9

Gross profits 34.1%

Less: Operating expenses

Selling expense 12.7%

General and administrative expenses 6.3

Lease expense 0.6

Depreciation expense 3.6

Total operating expense 23.2

Operating profits 10.9%

Less: Interest expense 1.5

Net profits before taxes 9.4%

Less: Taxes (rate 5 40%) 3.8

Net profits after taxes 5.6%

Less: Preferred stock dividends 0.1

Earnings available for common stockholders 5.5%

Creek Enterprises Common-Size Income Statement

for the Year Ended December 31, 2014Common-size statement analysis A common-size income statement for Creek Enterprises 2014 operations follows. Using the firms 2015 income statement presented in Problem 318, develop the 2015 common-size income statement and compare it with the 2014 statement. Which areas require further analysis and investigation?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A First Course in Quantitative Finance

Authors: Thomas Mazzoni

1st edition

9781108411431, 978-1108419574

More Books

Students also viewed these Finance questions