Tu: Bu-Iver: SHE: THe: Incone: Stutemint Dollars in Thousands, Except Fer-Share Amounts: The most important source of revenue is usually the tirst item on the incorne state. neent. It represents the primary source of revestue eamed by the campany from its customers for goods sold or services rendered. In Typical Manulacturing's income statement, it is shown as "net sales." The "net sales" item includes the amount reported after taking into consideration retumed goods and allowances for price. reductions or discounts: By comparing net salus between 199 and 19X8, we see that salcs increased in XXXX. 33 Net sales $765,050 In a manutactoring establishment cost of sales represents all the costs the company incurs to purchase and comvert taw materi. als into the finished products that it sells. These costs are commonly krown as prod. uct costs. "Product costs" are thove coss that can be identidied with the purchase or mansacture of goods made available for sale. There are three busic components of product cost: (1) Direct materials, (2) direct labor Section 1: Using the Data from "19x9" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 198). Section 2: Using the Data from "19x8" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 19x8). Both Sections: Post your answers in an Excel file. Use the calculation/formula capabilities of Excel. Make your answers easy to read and follow by using color or box frames. Make your explanations understandable to the manager who does not have as much financial knowledge as you. Tu: Bu-Iver: SHE: THe: Incone: Stutemint Dollars in Thousands, Except Fer-Share Amounts: The most important source of revenue is usually the tirst item on the incorne state. neent. It represents the primary source of revestue eamed by the campany from its customers for goods sold or services rendered. In Typical Manulacturing's income statement, it is shown as "net sales." The "net sales" item includes the amount reported after taking into consideration retumed goods and allowances for price. reductions or discounts: By comparing net salus between 199 and 19X8, we see that salcs increased in XXXX. 33 Net sales $765,050 In a manutactoring establishment cost of sales represents all the costs the company incurs to purchase and comvert taw materi. als into the finished products that it sells. These costs are commonly krown as prod. uct costs. "Product costs" are thove coss that can be identidied with the purchase or mansacture of goods made available for sale. There are three busic components of product cost: (1) Direct materials, (2) direct labor Section 1: Using the Data from "19x9" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 198). Section 2: Using the Data from "19x8" column calculate the following ratios, explain what each one means, and show what formula you used. ROE Current ratio Debt to Equity Gross Profit Margin Create a common size balance sheet for the Income Statement only, down to Net Income, comparing the two years worth of data (19x9 and 19x8). Both Sections: Post your answers in an Excel file. Use the calculation/formula capabilities of Excel. Make your answers easy to read and follow by using color or box frames. Make your explanations understandable to the manager who does not have as much financial knowledge as you
