Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected financial information ( in 0 0 0 s ) from the financial statements of Moosomin Ltd . for Years 6 and 7 is as

Selected financial information (in 000s) from the financial statements of Moosomin Ltd. for Years 6 and 7 is as follows:
Year 6 Year 7
Sales revenue $ 1,270 $ 1,370
Cost of goods sold 720805
Other expenses 340275
Net income 210290
Current assets 430470
Total assets 1,5201,610
Total liabilities 1,070980
Shareholders' equity 450630
Required:
(a) Convert Moosomins financial statements for both Year 6 and Year 7 into common-sized financial statements using (Input all amounts as positive values. Round the final answers to the nearest whole percent. Omit % sign in your response.)
(i) Vertical analysis
Financial Statements
Year 6 Year 7
Sales revenue
%
%
Cost of goods sold
%
%
Other expenses
%
%
Net income
%
%
Current assets
%
%
Total assets
%
%
Total liabilities
%
%
Shareholders' equity
%
%
(ii) Horizontal analysis
Financial Statements
Year 6 Year 7
Sales revenue
%
%
Cost of goods sold
%
%
Other expenses
%
%
Net income
%
%
Current assets
%
%
Total assets
%
%
Total liabilities
%
%
Shareholders' equity
%
%
(b) Identify three financial statement items (other than net income) that seem to be the most peculiar relative to expectations. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
check all that apply
Sales revenueunanswered
Cost of goods soldunanswered
Other expensesunanswered
Current assetsunanswered
Total assetsunanswered
Total liabilitiesunanswered
Shareholders' equityunanswered

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

Fundamental Accounting Principles Volume 2

Authors: John Wild, Ken Shaw, Barbara Chiappetta

21st Edition

0077716663, 978-0077716660

More Books

Students also viewed these Accounting questions

Question

What is one thing you will never do again?

Answered: 1 week ago