Prepare common size income statements vertical

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Prepare common-size income statements (vertical analysis) for Bockman Industries for the two years presented. 2. Prepare a memo to the controller of Bockman identifying and describing a possible explanation for each of the following. a. An increase in sales along with the change in the gross margin percentage. b. An increase in sales along with the increase in selling expenses. c. An increase in sales along with the increase in administrative expenses. 3. Assume that Bockman has no preferred stock outstanding and any change in the number of shares of common stock occurred at the beginning of Year 2. If the shareholders’ equity at the end of Year 2 totaled $7,363,200, calculate Bockman’s book value per share.
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347 Question: 2.3 – Han Electronics Inc. Han Electronics Inc. is an electronics retailer with a fitness equipment retailer subsidiary. Han is a mature company with declining sales while the subsidiary is growing and profitable. The management of Han is considering several strategic options for the company as a whole. They considered purchasing additional companies to continue to diversify their product mix, or split out some or all of the subsidiary into a separate company so that each company could go in a different direction. Ultimately, the concern is that Han is failing. Management wants to maximize shareholder value, turn the company around, and continue as a going concern. REQUIRED: 1. a. Define mergers and acquisitions. b. Does this scenario describe a merger or an acquisition? c. Identify three possible synergies or benefits of mergers and acquisitions. 2. a. Identify and describe the following two types of divestitures: spin-offs and equity carve-outs. b. Identify whether either of these divestiture types is described in the scenario above. 3. Define bankruptcy and identify the different types of bankruptcy.
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348 Question: 2.4 – OneCo, Inc. OneCo Inc. produces a single product. Cost per unit, based on the manufacture and sale of 10,000 units per month at full capacity, is shown below. Direct materials $4.00 Direct labor 1.30 Variable overhead 2.50 Fixed overhead 3.40 Sales commission .90 $12.10 The $0.90 sales commission is paid for every unit sold through regular channels. Market demand is such that OneCo is operating at full capacity, and the firm has found it can sell all it can produce at the market price of $16.50. Currently, OneCo is considering two separate proposals: Gatsby, Inc. has offered to buy 1,000 units at $14.35 each. Sales commission would be $0.35 on this special order. Zelda Productions, Inc. has offered to produce 1,000 units at a delivered cost to OneCo of $14.50 each. REQUIRED: 1. What would be the effect on OneCo's operating income of each of the following actions? a. Acceptance of the proposal from Gatsby, but rejection of the proposal from Zelda.
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