Income statements for Burch Company for Year 3 and Year 4 follow. Required Round all percentages to
Question:
Income statements for Burch Company for Year 3 and Year 4 follow.
Required
Round all percentages to one decimal point.
a. Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Transcribed Image Text:
Year 4 Year 3 Sales $240,000 $200,000 Cost of goods sold Selling expenses Administrative expenses Interest expense Total expenses 180,000 26,000 12,000 124,000 20,000 18,000 8,000 7,500 225,500 170,000 Income before taxes 14,500 1,200 30,000 3,000 $ 27,000 Income taxes expense Net income $ 13,300
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
a Horizontal Analysis BurchCompany Horizontal Analysis of Income Statements Year 4 Year ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Survey Of Accounting
ISBN: 9781260575293
6th Edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds
Question Posted:
Students also viewed these Business questions
-
Income statements for Burch Company for 2018 and 2019 follow: ______________________________2019 2018 Sales.................................... $240,000.............................. $200,000 Cost of...
-
The table shows the percentage change in monthly food stamp participation by state between January 2011 and January 2012. Draw the frequency histogram for the data. Use an interval width of 3.0, and...
-
The graph in Figure 3.39 shows the percentage change in the CPI over recent years. In what year (of the years displayed) was the change in the CPI the greatest? What happened in 2009? How do actual...
-
Find the net torque on the wheel in the figure below about the axle through O perpendicular to the page, taking a = 7.00 cm and b = 25.0 cm. (Indicate the direction with the sign of your answer....
-
Refrigerant-134a at 140 kPa and -10C is compressed by an adiabatic 1.3-kW compressor to an exit state of 700 kPa and 60C. Neglecting the changes in kinetic and potential energies, determine (a) The...
-
The most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout...
-
Streamlines are given in Cartesian coordinates by the equation. \[ \psi=U\left(y-\frac{y}{x^{2}+y^{2}} ight) . \quad x^{2}+y^{2} \geq 1 \] Plot the streamlines for \(\psi=0, \pm 60.0625\), and...
-
This problem is based on the information about the Murphy County General Fund budgeted and actual transactions and events described in Problem 4-2. In Problem 4-2, The Murphy County Commissioners...
-
A 2,274.88 kilogram truck runs into the rear of a 1,067.75 kilogram stationary car. The truck and car are locked together after the collision and move with speed 8.93 meters per second. What was the...
-
The manager of the BiLo Supermarket in Mt. Pleasant, Rhode Island, gathered the following information on the number of times a customer visits the store during a month. The responses of 51 customers...
-
Presented here is selected information from the 2016 fiscal-Year 10-K reports of four companies. The four companies, in alphabetical order, are: AT&T, Inc., a company that provides communications and...
-
In July 2015, H. J. Heinz Company and Kraft Foods Group completed their merger. The new company, named The Kraft Heinz Company (KHC), became the fifth largest food and beverage company in the world....
-
The demand and supply functions of a good are given by P = 3Q D + 48 P = 1/2Q S + 23 Find the equilibrium quantity if the government imposes a fixed tax of $4 on each good.
-
The reduction in per-unit costs that occurs as an organization gains experience producing a product or service is known as economies of scale. Economies of scale is one of the contributing factors to...
-
The reason for the firms existence is known as __________. A. the vision B. organizational goals C. organizational objectives D. none of the above
-
In order to contribute to sustained competitive advantage, firm resources should be __________. A. valuable and rare B. not subject to perfect imitation C. without strategically relevant resources D....
-
What are the relationships among corporate-level, business unit, and functional strategies?
-
The purchasing department in a low-cost business should always purchase raw materials at the lowest possible cost. True or False
-
A solenoid is formed by winding 25.0 m of insulated silver wire around a hollow cylinder. The turns are wound as closely as possible without overlapping, and the insulating coat on the wire is...
-
The senior management at Davis Watercraft would like to determine if it is possible to improve firm profitability by changing their existing product mix. Currently, the product mix is determined by...
-
What does the term warranty mean?
-
What effect does recognizing future warranty obligations have on the balance sheet? On the income statement?
-
When is warranty cost reported on the statement of cash flows?
-
The market price of a semi-annual pay bond is $957.95. It has 15.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the yield to maturity? The market price of a semi-annual...
-
Compute the accumulated sum of the following payments: (a) $400 every six months for 4 years at 8% compounded semi-annually (b) $250 per month for 5 years at 7.5% compounded monthly.
-
The output is wrong. Sometimes a program lacking input will produce wrong output (as in this case), or no output. Remember to always pre-enter needed input. Type 2 in the input box, then click "Run...
Study smarter with the SolutionInn App