Question

Which of the following is NOT true of common-size income statements? Select one: a. Income statement...

Which of the following is NOT true of common-size income statements?

Select one:

a. Income statement accounts are represented as percentages of net sales.

b. Common-size income statements analysis is a specialized application of ratio analysis.

c. Each income statement item is standardized by dividing it by net sales.

d. Each income statement item is standardized by dividing it by total assets.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is...
Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income? Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.) GOMEZ CORPORATION Comparative Income Statements For Years Ended December 31 Current Year Prior Year $ % $ % Sales $730,000 $640,000 Cost of goods sold 565,400 288,800 Gross profit 164,600 351,200 Operating expenses 128,000 261,200 Net income $36,600 $90,000...
7 ) The use of common size financial statements is an example of Select one: a....
7 ) The use of common size financial statements is an example of Select one: a. ratio analysis. b. horizontal analysis. c. vertical analysis. d. liquidity analysis.
The _____________ analysis involves taking all of the absolute figures on the company’s financial statements and...
The _____________ analysis involves taking all of the absolute figures on the company’s financial statements and converting them to percentages. ratio trend common-size All of the above. Which of the following is a category in ratio analysis? market ratios profitability ratios liquidity ratios All of the above. With ___________ analysis, you choose a particular base year and set every single figure in that year’s financial statement equal to 100%. You then look at subsequent years, comparing each individual line in...
Common-Size Income Statements Following is the income statement for Target Corporation. Prepare Target’s common-size income statement...
Common-Size Income Statements Following is the income statement for Target Corporation. Prepare Target’s common-size income statement for the fiscal year ended January 31, 2015. (Round your answers to one decimal place.) ($ millions) Fiscal year ended January 31, 2015 Sales revenue $72,618 Cost of sales 51,278 Selling, general and administrative expenses 14,676 Depreciation and amortization 2,129 Earnings from continuing operations before interest and income taxes 4,535 Net interest expense 882 Earnings from continuing operations before income taxes 3,653 Provision for...
Common-Size Income Statements Consider the following income statement data from the Ross Company: 2013 2012 Sales...
Common-Size Income Statements Consider the following income statement data from the Ross Company: 2013 2012 Sales revenue $525,000 $450,000 Cost of goods sold 336,000 279,000 Selling expenses 107,000 101,000 Administrative expenses 62,000 56,000 Income tax expense 9,800 7,400 Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). ROSS COMPANY Common-Size Income Statements (Percent of Sales Revenue) 2013 2012 Sales Revenue Answer Answer Cost of Goods Sold Answer Answer Gross Profit on...
1. A common size financial statement is a useful tool in performance evaluation because it enables...
1. A common size financial statement is a useful tool in performance evaluation because it enables the user to: A.        compare one company’s performance in different periods. B.         evaluate the direction a business is taking over a longer period of time. C.         evaluate relationships between key components in the financial statements. D.        compare companies of different sizes in the same industry. 2.         Comparing one company against a competitor or against industry averages is called:             A.        benchmarking. B.         comparative analysis....
Which of the following is an advantage of a common-size income statement? a.It can tell the...
Which of the following is an advantage of a common-size income statement? a.It can tell the analyst a great deal about a firm’s efficiency and profitability b. It reveals how effectively a firm has increased its assets c. It reveals a great deal of information about the adequacy of a firm’s net working capital d. It is very useful to assess how effectively a firm collected its accounts receivable.
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue...
Prepare a common-size income statement (component percentages) for the following income statement. Dollar Amount Sales revenue $200,000 Cost of goods sold $80,000 Gross profit $120,000 Operating expenses $101,000 Interest expense $4,000 Income before income tax $15,000 Income tax expense (rate 20%) $3,000 Net income
Which of the following statements is true?    Select one: a. We can only find the...
Which of the following statements is true?    Select one: a. We can only find the opening balance of Capital on the 10-column worksheet when there is no owner’s drawings. b. We can only find the opening balance of Capital on the 10-column worksheet when there is no owner’s contribution. c. We can always find the opening balance of Capital on the 10-column worksheet. d. We can never find the opening balance of Capital on the 10-column worksheet. Using accrual...
Consider the following simplified financial statements for the Steveston Corporation (assuming no income taxes): Statement of...
Consider the following simplified financial statements for the Steveston Corporation (assuming no income taxes): Statement of Comprehensive Income Statement of Financial Position   Sales $ 32,000   Assets $ 25,300   Debt $ 5,800   Costs 24,400   Equity 19,500     Net income $ 7,600     Total $ 25,300     Total $ 25,300 Steveston has predicted a sales increase of 15 percent. It has predicted that every item on the statement of financial position will increase by 15 percent as well.    Create the pro forma statements and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT