11) Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called:
12) Statements that are often used to compare similar businesses are called:
13) If total assets are $6,000, what is the common-size figure of cash, assuming that cash has a balance of $2,400?
14) The following is a common-sized income statement for Alpha and Beta Companies.
(in thousands)
Alpha %
Beta %
Net Sales
100.0%
Cost of Goods Sold
64.6%
60.8%
Gross Profit
35.4%
39.2%
Operating Expenses
Selling, General and Adm.
15.4%
15.3%
Other
1.4%
1.5%
Income Before Income Tax
18.7%
22.4%
Income Tax Expense
2.7%
3.1%
Net Income
16.0%
19.3%
Which company has the best cost of goods sold?
15) The following is a common-sized income statement for Alpha and Beta Companies.
Which company had the lower net income as a percentage of sales?
16) From the following, complete the common-size income statement for Isaiah’s Sporting Goods using net sales as the base. (Round to nearest tenth of a percent.)
2012
2011
Item
Amount
Percent
$600,000
$525,000
500,000
$460,000
100,000
65,000
75,000
27,000
25,000
38,000
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here