Horizontal analysis (trend analysis) percentages for Spartan Company's sales, cost of goods sold, and expenses are listed
Question:
Horizontal analysis (trend analysis) percentages for Spartan Company's sales, cost of goods sold, and expenses are listed here.
Explain whether Spartan's net income increased, decreased, or remained unchanged over the 3-year period.
Horizontal Analysis Sales Cost of goods sold Expenses 2012 2010 2011 96.2% 104.8% 98.0 100.0% 101.0 105.6 95.4 100.0
Step by Step Answer:
Comparing the percentages presented results in the following conclusions T...View the full answer
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
Students also viewed these Accounting questions
-
Explain how cost of goods sold is converted from an accrual basis to a cash basis.
-
Explain why cost of goods sold should be lower if manufacturing overhead is overallocated. Should operating income be higher or lower if manufacturing overhead is overallocated? Why?
-
Explain how cost of goods sold is treated when a business sells inventory.
-
Consider the heat pump described in Example 9.14. The heat pump now operates between 0.60 MPa and 1.4 MPa. Plot the vapor-compression cycle in Ts coordinates (use NIST) and determine the cycle...
-
The design for a new cementless hip implant is to be studied using an instrumented implant and a fixed simulated femur. Assuming the punch applies an average force of 2 kN over a time of 2 ms to the...
-
A buffer solution consists of 6.00 g of ethanoic acid (CH 3 COOH) and 12.3 g of sodium ethanoate (CH 3 COONa) in 200 cm 3 of aqueous solution. (A r values: H = 1.0, C = 12.0, O = 16.0, Na = 23.0; Ka...
-
Consider the air pollution and mortality data given in Problem 3.15 and Table B. 15 . Problem 3.15 McDonald and Ayers [1978] present data from an early study that examined the possible link between...
-
On January 1, 2007 Lani Company entered into a non-cancelable lease for a machine to be used in its manufacturing operations. The lease transfers ownership of the machine to Lani by the end of the...
-
Accountants, Ethics, and the Financial Statements ( 2 5 Marks ) For some time, Hernadez Pty Co . a beverage manufacturer has been selling to the west coast region, however recently their market share...
-
On January 1, Year 1, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, fouryear term note that had an 8 percent annual interest rate. The note is to be repaid by making...
-
Vertical analysis (common-size) percentages for Vallejo Company's sales, cost of goods sold, and expenses are listed here. Did Vallejo's net income as a percent of sales increase, decrease, or remain...
-
These selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). Compute the current ratio for each year and comment on your results. 2009 2008 $ 13,606 23,045...
-
Refer to Exercise 21.21. Figure E21.22 shows the bonding of cytosine and guanine. The OH and HN distances are each 0.110 nm. In this case, assume that the bonding is due only to the forces along the...
-
Why should a business consider sustainability in its budget?
-
Can you think of some circumstances where the budget or the budget-setting process might demotivate rather than motivate employees?
-
Why do you think budgeting is described as a cycle? How is that related to the control of the business?
-
What are the considerations for an appropriate credit-granting policy?
-
Syd Gilman read the latest sales figures with a great deal of satisfaction. The vice-president of marketing at Hy Dairies Ltd., a large Canadian milk products manufacturer, was pleased to see that...
-
Why do you think managers are normally reluctant to make projected financial statements publicly available? Try to think of at least one reason.
-
Explain the term "Equivalent Units". Why are they calculated in process costing? [4 Marks] [minimum 350 words]
-
Suppose two ions have been accelerated down a mass spectrometer, one of light mass and one of heavy mass. Which one do you think will take more voltage to the electromagnet to make it reach the...
-
Data for Betsy Strand are presented in BE10-5. Prepare the employer's journal entry to record payroll taxes for the period. Ignore unemployment taxes. In BE10-5 Betsy Strands regular hourly wage rate...
-
Bridle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2017.
-
Ravine Company issues $400,000, 20-year. 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1. 2017.
-
Simplify. 2 x-4)2x +0x - 26x - 24
-
On January 1 , 2 0 X 2 P pays $ 1 0 0 million to acquire 5 0 , 0 0 0 of the common voting shares of S , which gives P a 2 5 % ownership interest in S . The January 1 , 2 0 X 2 book value of S ' s...
-
Shaw Company has the following account balances: Receivables $ 1 0 0 , 0 0 0 Inventory 1 5 0 , 0 0 0 Land 1 0 0 , 0 0 0 Building net 2 5 0 , 0 0 0 Liabilities 1 0 0 , 0 0 0 Common stock 1 0 0 , 0 0 0...
Study smarter with the SolutionInn App