U10.A1.Common-Size Statement Analysis.doc - BUS4061 Unit 10 Assignment 1 Problem 13-2B Part 1 Compute Current ratio 54,860\/22,370 = 2.5:1(Round ratio

U10.A1.Common-Size Statement Analysis.doc - BUS4061 Unit 10...

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BUS4061 Unit 10 Assignment 1 Problem 13-2B Part 1 Compute Current ratio: December 31, 2017 54,860/22,370 = 2.5:1 (Round ratio amounts to one decimal.) December 31, 2016 32,660/19,180 = 1.7:1 Current assets/current liabilities December 31, 2015 36,300/16,500 = 2.2:1 Part 2 Express the income statement data in common-size percents. (Round percents to two decimals.) Common size percent = (analysis amount / base amount) x 100 Income Statement uses Revenues as base amount** BLUEGRASS CORPORATION Common-Size Comparative Income Statements For Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Sales (198,800/198,800) x 100 = 100% (166,000/166,000) x 100 = 100% (143,800/143,800) x 100 = 100% Cost of goods sold (108,890/198,800) x 100 = 54.77% (86,175/166,000) x 100 = 51.91% (66,200/143,800) x 100 = 46.04% Gross profit (89,910/198,800) x 100 = 45.23% (79,825/166,000) x 100 = 48.09% (77,600/143,800) x 100 = 53.96% Selling expenses (22,680/198,800) x 100 = 11.41% (19,790/166,000) x 100 = 11.92% (18,000/143,800) x 100 = 12.52% Administrative expenses (16,760/198,800) x 100 = 8.43% (14,610/166,000) x 100 = 8.80% (15,700/143,800) x 100 = 10.92% Total expenses (39,440/198,800) x 100 = 19.84% (34,400/166,000) x 100 = 20.72% (33,700/143,800) x 100 = 23.44% Income before taxes (50,470/198,800) x 100 = 25.39% (45,425/166,000) x 100 = 27.36% (43,900/143,800) x 100 = 30.53% Income taxes (6,050/198,800) x 100 = 3.04% (5,910/166,000) x 100 = 3.56% (5,300/143,800) x 100 = 3.69% Net Income (44,420/198,800) x 100 = 22.34% (39,515/166,000) x 100 = 23.80% (38,600/143,800) x 100 = 26.84% 1
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BUS4061 *Some totals do not reconcile due to rounding.
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  • Fall '14
  • DennisHart
  • Accounting, Balance Sheet, Net Income, Generally Accepted Accounting Principles, Bluegrass Corporation

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