Ch 11 CAC - Comprehensive Analysis Case Circuit City...

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Comprehensive Analysis Case Circuit City Stores, INC. Income statement questions: 1. Revenues have increased from 1,466.3 million in 1999 to 2.501 million in 2001. 2. The percent change in total revenues from 1999 to 2001 is: ((2,501-1,466.3)/1,466.3)= 70.57% increase in total revenues. 3. In 1999, cost of goods sold was 88.2% of the total revenue, and in 2001 the cost of goods sold dropped to 86.8% the total revenue. Total goods sold to total revenues are decreasing over the period, so the gross margin percent is increasing. 4. In 1999, the expense to revenue ratio gave back 13.9%. In 2001, the ratio was only 9.76%, so the expense to revenue ratio is shrinking, so as a result the operating income is growing over the period. 5. In 1999, net income to total revenue was a negative 1.6%. In 2001 this number increased to a positive 1.8%, so the ratio is increasing over the period. Balance sheet questions: 6. The balance of assets in 1999 was 571.2 million, and the number rose to 711 million in
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Ch 11 CAC - Comprehensive Analysis Case Circuit City...

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