Income statements for Thompson Company for 2011 and 2012 follow. Required a. Perform a horizontal analysis, showing
Question:
Income statements for Thompson Company for 2011 and 2012 follow.
Required
a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2011 and 2012.
b. Perform a vertical analysis, showing each income statement component as a percent of sales for each year.
Transcribed Image Text:
2012 2011 Sales $180,000 $200,000 Cost of goods sold Selling expenses Administrative expenses Interest expense 142,000 20,000 12,000 3,000 $177,000 23,000 120,000 18,000 14,000 5,000 Total expenses 157,000 Income before taxes 23,000 Income taxes expense 5,000 $ 18,000 3,000 $20,000 Net income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
a Horizontal Analysis ThompsonCompany Horizontal Analysis of Income Statements 2012 2011 ...View the full answer
Answered By
Surojit Das
I have vast knowledge in the field of Mathematics, Business Management and Marketing. Besides, I have been teaching on the topics Management leadership, Business Administration, Human Resource Management, Business Communication, Accounting, Auditing, Organizer Behaviours, Business Writing, Essay Writing, Copy Writing, Blog Writing since 2020. It is my personality to act quickly in any emergency situations when students need my services. I am very professional and serious in every questions students asked me at the time of dealing any projects. I have been serving detailed, quality, properly analysed research paper through the years.
4.80+
91+ Reviews
278+ Question Solved
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Question Posted:
Students also viewed these Managerial Accounting questions
-
The table shows the percentage change in monthly food stamp participation by state between January 2011 and January 2012. Draw the frequency histogram for the data. Use an interval width of 3.0, and...
-
The graph in Figure 3.39 shows the percentage change in the CPI over recent years. In what year (of the years displayed) was the change in the CPI the greatest? What happened in 2009? How do actual...
-
The cross-price elasticity of demand measures the percentage change in the quantity of a good demanded when the price of a different good changes by 1%. The income elasticity of demand measures the...
-
The post-closing trial balances of two proprietorships on January 1, 2010, are presented below. Patrick and Samuelson decide to form a partnership, Pasa Company, with the following agreed upon...
-
Why is the RISKCORRMAT function necessary? How does @RISK generate random inputs by default, that is, when RISKCORRMAT is not used?
-
Based on the adjusted trial balance prepared in Problem 4-8A, prepare an income statement and a statement of changes in equity for the year ended March 31, 2020, and a classified balance sheet at...
-
Consider atmospheric air at \(20^{\circ} \mathrm{C}\) and a velocity of \(30 \mathrm{~m} / \mathrm{s}\) flowing over both surfaces of a 1-m-long flat plate that is maintained at \(130^{\circ}...
-
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the company decides to repurchase 100 shares at a cost of $38 per share. Record...
-
Pina is a manufacturer with a purpose: it creates durable, yet affordable, duffel bags with many functional pockets and accessories to encourage people of all ages to travel. In the process of making...
-
The chart of accounts of Avery?s Delivery Service is as follows: Avery?s Delivery Service completed the following transactions during the month of October: 1. Audrey Avery invested $33,000 in the...
-
Ratio analysis Required Match each of the following ratios with the formula used to compute it. 1. Working capital a. Net income + Average total stockholders' equity b. Cost of goods sold + Average...
-
Compute the specified ratios using Hilda Companys balance sheet for 2011. The average number of common stock shares outstanding during 2011 was 880 shares. Net income for the year was $15,000....
-
An ideal-gas mixture whose apparent molar mass is 20 kg/kmol consists of N2 and three other gases. If the mole fraction of nitrogen is 0.55, its mass fraction is (a) 0.15 (b) 0.23 (c) 0.39 (d) 0.55...
-
Which companies keep continue applying Co-Ceo management model in their business? Can you give me the companies names?
-
Determine where and how on the timeline each model (crime control or due process) is demonstrated in this scenario. Your assignment can just list the date and the model with explanation. Not every...
-
Which specific brand personality traits does Lush communicate to its customers? Discuss with reference to the case and to the Aaker brand personality framework?
-
Borrowers and savers have utility function u (Cb, C)= log(C+Blog(C), u (CS. Ca)= log (C5)+Blog(C). with 3b < Bs. The representative borrower is subject to the period-by-period budget constraints: CP=...
-
An unregulated electric utility has MC = 30, FC = 0, and faces the demand curve: P = 45 -0.025Q - e) Initially, this firm acts as a single-price monopolist. Find price, quantity, revenue, and profit....
-
Consider a consumer who lives for three periods: youth, middle age, and old age. When young, the consumer earns \(\$ 20,000\) in labor income. Earnings during middle age are uncertain; there is a...
-
Differentiate the following terms/concepts: a. Personality types and money attitudes b. Planners and avoiders c. Moderating and adapting to biases d. "Perfectible judges" and "incorrigible judges"
-
We have suggested in the text that the rapid rise in housing prices in the period from 2000 to 2006 and the subsequent rapid fall of those prices after 2006 may have played a role in the 20082009...
-
Big City Carl, a local politician, is advancing a project for the construction of a new dock and pier system at the river to attract new commerce to the city. A committee appointed by the mayor (an...
-
Two different routes, which entail driving across a mountainous section, are being considered for a highway construction project. The first route (the high road) will require building several bridges...
-
The federal government proposes to construct a multipurpose water project to provide water for irrigation and municipal use. In addition, flood control and recreation benefits will be realized. The...
-
Mrs. Sam Taffer was a brilliant engineer at IBM and made a lot of money from stock options. Since then, she has worked as a musician and raised her two sons. She wishes to have most of her property...
-
Miller Company ended its fiscal year on June 30, 2017. The company's adjusted trial balance as of the end of its fiscal year is shown below. MILLER COMPANY Adjusted Trial Balance June 30, 2017...
-
What depreciation method is used to write off property, plant and equipment? Regarding the triple bottom line, what information did the company disclose about environmental matters in the reports?...
Advanced Marketing Management Principles Skills And Tools 1st Edition - ISBN: 0749480378 - Free Book
Study smarter with the SolutionInn App