BUSN379_HW_1 - BUSN379 Comprehensive Prob. 3-2 Pg. 87...

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BUSN379 Comprehensive Prob. 3-2 Pg. 87 Answer all questions 1. Referring to Exhibit1comput the annual percentage change in net income per common share- dilute (2 nd numerical line from the bottom) for 1998-1999, 1999-2000,and 200- 2001. Years Variance Percentage 1998 = 0.24 1999 = 0.31 0.07 29.17% 2000 = 0.55 0.24 77.42% 2001 = 0.27 -0.28 -50.91% 2. Also in Exhibit 1, compute net income/net revenue (sales) for each of the four years. Begin with 1998. 1998 75 5 / 9,862 0.076 7.6% 1999 1,030 / 11,806 0.087 8.7% 2000 1,854 / 15,721 0.117 11.7% 2001 927 / 18,250 0.05 5% 3. What is the major reason for the change in the answer for question 2 between 2000 and 2001? To answer this question for each of the two years, take the ratio of the major income statement accounts (which follow Exhibit 1 on the next page) to net revenues (sales). Cost of sales / net revenue 2000= 7,549/15,721= 0.48 2001= 10,041/18,250= 0.55 Research and development / net revenues 2000=1,630/15,721 = 0.10 2001= 2,016/18,250=0.11
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This note was uploaded on 03/10/2011 for the course BUSN 379 taught by Professor None during the Spring '10 term at DeVry Chicago.

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BUSN379_HW_1 - BUSN379 Comprehensive Prob. 3-2 Pg. 87...

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