Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 16, Problem 4EA
Express Rivera Company’s partial comparative income statements as common-size statements, and comment on the changes from 2013 to 2014.
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Required: Prepare a multiple-step income statement for 2016, including EPS disclosures.
Perform a horizontal analysis for the MLC income statement (Table 4–7)for 2011 and 2012. Write an explanation of this analysis.
Required: a. Prepare a schedule of income allocation for 2013.b. Prepare the general journal entry to close the Income Summary account.
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- epare an income statement for the year ended December 31, 2018, which includes amounts gross profit, income before income taxes, and net income. List expenses (other than cost of for goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share. pare a statement of retained earnings for the year ending December 31, 2018. Prepare thes a statement of financial position (balance sheet) as of December 31, 2018, following Include separate asset and liability categories for those items that are "current." Include and label amounts for total assets, total liabilities, total stockholders' equity, and total liabilities and stockholders' equity. Present deferred income taxes as a noncurrent liability. To the extent information is available that should be disclosed, include the parenthetical disclosure of that information.arrow_forwardRefer to the information for Cuneo Company above.Required:1. Prepare a common-size income statement for Year 2 by expressing each line item for Year2 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)2. Prepare a common-size income statement for Year 3 by expressing each line item for Year3 as a percentage of that same line item from Year 1. (Note: Round percentages to thenearest tenth of a percent.)arrow_forward(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.)arrow_forward
- Preparing Common-Size Income Statements by Using BasePeriod Horizontal AnalysisRefer to the information for Scherer Company on the previous page.Required:Prepare common-size income statements by using Year 1 as the base period. (Note: Roundanswers to the nearest whole percentage.)arrow_forwardThe following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forwardThe comparative financial statements of Global Technology are as follows: Review the worksheet RATIOA that follows these requirements. You have been asked to perform a ratio analysis of this company for 2012.arrow_forward
- A.Perform horizontal analysisand vertical analysis (for 2020only)on the income statement. In your answer please remember to indicate if it is an INCREASE or (DECREASE) and round your findings to ONE decimal place [e.g. -32.996% is - 33.0% or minus 33.0% or (33.0%). B. Comment on the significant changes disclosed by the comparative statement of comprehensive income. What has caused the changes to occur? C. Prepare a statement of retained earnings for the year ended June 30, 2020. (Retained earnings at July 1, 2019 were $58,000, dividends declared and paid during the financial year were $37,000. D. Explain how profits for the year ended June 30, 2019 were $126,700 yet Retained Earnings at July 1, 2019 were only $58,000.arrow_forwardLiverton Co.’s income statement for the year ended 31 March 2019 and statements of financial position at 31 March 2019 and 2018 were as follows in the images. Calculate for the financial year ended 31 March 2019 and, where possible, for 31 March 2018, the following ratios: i) Gross profit marginii) Assets usageiii) Current ratioiv) Acid testv) Inventories holding periodvi) Debt to Equity ratioarrow_forward2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.) KORBIN COMPANY Common-Size Comparative Income Statements For Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Sales % % % Cost of goods sold -1 -1 -1 Gross profit Selling expenses -1 -1 -1 Administrative expenses -1 -1 -1 Total expenses Income before taxes -1 -1 -1 Income tax expense -1 -1 -1 Net income % % % See picturearrow_forward
- Use the income statement and the list of changes to answer the question. Lightspeed Industries Income Statement Revenue Cost of Goods Sold (COGS) Gross Income Sales, General, & Administrative Expenses (SG&A) Depreciation Expense Other Expenses Earnings Before Interest & Taxes (EBIT) Interest January 1 to December 31, 2022 (amounts in thousands) Pre-Tax Income Income Taxes Net Income 9,800 1,960 7,840 980 800 400 5,660 170 5,490 2,196 3,294 Between January 1 and December 31, 2022: 1. Accounts Receivable increase by $500,000 2. Accounts Payable increase by $700,000 3. Gross Property, Plant, & Equipment increase by $9,400,000 4. Long Term Debt decreases by $400,000 Assume no other changes What is the Net Cash Flow? Note: Account change amounts are provided in dollars but the financial statement units are thousands of dollars. Please specify your answer in the same units as the financial statements (i.e., enter the number from your completed statement of cash flows).arrow_forwardThe following selected information is for Okanagan Company for the year ended January 31, 2024: The following selected information is for Okanagan Company for the yar ended January 31, 2024: (a) Y Your answer is partially correct. Prepare a multiple - step income statement. (Enter negative amounts using either a negative sign preceding the number es. .45 or parentheses e.g. (45)arrow_forwardComparative income statement for Deep Sea Company for 2016 and 2015 are given below: Prepare the common size income statement of Deep Sea Company for 2016 and 2015. Enter the numbers without decimals. Do not round off the numbers. Add % sign after the numbers. Revenue unanswered unanswered Cost Of goods sold unanswered unanswered Gross profit unanswered unanswered Selling and general expenses unanswered unanswered Operating profit unanswered unanswered Interest expense unanswered unanswered Income before tax unanswered unanswered Income tax expenses unanswered unanswered Net Profit unanswered unansweredarrow_forward
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