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BRIEF EXERCISES BE 173 The following items were taken from the financial

Question : BRIEF EXERCISES BE 173 The following items were taken from the financial : 1312006

 

BRIEF EXERCISES

BE 173

The following items were taken from the financial statements of Henager, Inc., over a three-year period:

Item               2014        2013     2012

Net Sales$355,000$340,000$300,000

Cost of Goods Sold  214,000  202,000  186,000

Gross Profit$141,000$138,000$114,000

 

Instructions

Compute the following for each of the above time periods.

a.The amount and percentage change from 2012 to 2013.

b.The amount and percentage change from 2013 to 2014.

 

BE 174

If Parton Company had net income of $540,000 in 2013 and it experienced a 30% increase in net income over 2012, what was its 2012 net income?

 

BE 175

Horizontal analysis (trend analysis) percentages for Staas Company’s sales, cost of goods sold, and expenses are listed here.

Horizontal Analysis  2014   2013   2012

Sales              98.2%              104.8%              100.0%

Cost of goods sold              102.5              98.0              100.0

Expenses              108.6              96.4              100.0

 

BE 175(Cont.)

 

Instructions

Explain whether Staas’ net income increased, decreased, or remained unchanged over the 3-year period.

 

BE 176

Using the following operating data for Simple Corporation, illustrate horizontal analysis.

2013                        2012

Net sales$350,000$320,000

Cost of goods sold240,000180,000

Operating expenses80,000100,000

Net income30,00040,000

 

BE 177

Using the following operating data for Simple Corporation, prepare a schedule showing a vertical analysis for 2013.

2013                        2012

Net sales$360,000$320,000

Cost of goods sold210,000180,000

Operating expenses112,000100,000

Net income28,00040,000

 

 

 

Solution
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