accounting II chapter 14 Quiz.docx

# Less operating expenses 15830 operating income 4630

• Test Prep
• 9

This preview shows page 4 - 8 out of 9 pages.

Less: Operating expenses 15,830   % Operating income 4,630   % Less: Interest expense 620   % Income before income taxes 4,010   % Less: income tax expense 1,203   % Net income \$3,320   % \$65,000   % 45,500   % 19,500   % 16,200   % 3,300   % 920   % 2,380   % 714   % \$2,350   %

Subscribe to view the full document.

The vertical analysis in 2015 shows that Setter's gross profit is    % of sales and operating expenses  use up   % of the company's sales. Interest expense and income taxes, combined, use up  another    % of sales revenue. As a resu net income is approximately   % of sales revenue. Choose from any list or enter any number in the input fields and then continue to the next question. Which of the following provides a year-to-year comparison of a company's performance in two different years? A. Vertical analysis B. Time study analysis C. Ratio analysis D. Horizontal analysis Click to select your answer. When performing vertical analysis, each line item on the income statement is computed as a percentage of which of the following? A. Cost of goods sold B. Sales revenue C. Net income D. Operating expenses When performing vertical analysis, each line item on the balance sheet is computed as a percentage of which of the following? A. Total cash flows B. Total stockholder's equity
C. Total assets D. Total liabilities Working capital is defined as A. current liabilities plus current assets. B. current assets minus current liabilities. C. current liabilities munus current assets. D. cash minus current liabilities. Cartwright's,  a home-improvement store chain, reported these summarized figures: LOADING... (Click  the icon to view the income statement.) LOADING... (Click  the icon to view the balance sheets.) Read the  requirements   LOADING... . a.  Calculate  the gross profit percentage for  20172017. First identify the formula, then calculate the gross profit percentage. (Round your answer to one decimal  place.)     /   = Gross profit percentage     /   =   % b.  Calculate  the operating income percentage for  20172017.

Subscribe to view the full document.

First identify the formula, then calculate the operating income percentage. (Round your answer to one  decimal place.)     /   = Operating income percentage     /   =   % c.  Calculate  the rate of return on net sales for  20172017.
• Spring '15
• SMITH
• Balance Sheet, Generally Accepted Accounting Principles, Cartwright'sCartwright, Setter Corporation

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern