{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

acc chapt4 - Chapter 4 Problem 2 1 Ramos Nursery...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4 Problem 2 1 Ramos Nursery Corporation Income statements For the year ended April 30, 20x8 and 20x7 2008 2007 % % Net sales $525,932 100% Net sales $475,264 100% Cost of goods sold 234,948 44.70% Cost of goods sold 171,850 36.20% Gross Margin $290,984 55.30% Gross Margin $303,414 63.80% Operating expenses: Operating expenses: Selling expenses 161,692 30.70% Selling expenses 150,700 31.70% General and adminitrative 62,866 12% General and adminitrative 42,086 8.90% Total operating expenses 224,558 42.70% Total operating expenses 192,786 40.60% Other revenues and expenses: Other revenues and expenses: Interest Income 800 0.20% Interest Income 700 0.10% Interest expense -3,600 0.70% Interest expense -850 0.20% Excess on the expenses over rev. -2,800 0.50% Excess on the expenses over rev. -150 0.03% Income before taxes $63,626 12.10% Income before taxes $110,478 23.20% Income taxes expenses 15,000 2.90% Income taxes expenses 27,600 5.80% Net income $48,626 9.20% Net income $82,878 17.40% Earnigns per share $2.43 Earnigns per share $4.14 2 From 2007 to 2008, the income clearly decreases. Indded, we can first see that it decreases of a value of $34,252. As we can see, the gross margin decrease, while the operating expenses increases. It can explain why the income decreases.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}