1. Using the information provided for Peterson Bottling Company, complete the Common Size Income Statement calculations....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Using the information provided for Peterson Bottling Company, complete the Common Size Income Statement calculations. Complete the work on this page 2. Calculate the rate of growth in sales between the two years. 3. Do any of the answers suggest problems with Peterson Bottling's operations? Explain why or why not. Peterson Bottling Company Income Statement (000s) Year end 12/31/XX 20X1 Sales Cost of Goods Sold Operating Expenses Gross Profit General and Administrative Earnings after interest Net Income Total Earnings before Income and Tax Interest Expense Selling 3984 Delivery 921 1213 6118 1065 297 768 307 461 21418 14235 7183 Tax Common Size 20X2 22703 15209 7494 4141 1135 1212 6488 1006 311 695 278 417 Common Size 1. Using the information provided for Peterson Bottling Company, complete the Common Size Income Statement calculations. Complete the work on this page 2. Calculate the rate of growth in sales between the two years. 3. Do any of the answers suggest problems with Peterson Bottling's operations? Explain why or why not. Peterson Bottling Company Income Statement (000s) Year end 12/31/XX 20X1 Sales Cost of Goods Sold Operating Expenses Gross Profit General and Administrative Earnings after interest Net Income Total Earnings before Income and Tax Interest Expense Selling 3984 Delivery 921 1213 6118 1065 297 768 307 461 21418 14235 7183 Tax Common Size 20X2 22703 15209 7494 4141 1135 1212 6488 1006 311 695 278 417 Common Size
Expert Answer:
Answer rating: 100% (QA)
To complete the common size income statement you need to calculate each line item as a percentage of sales for each year This allows analysts to compa... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
Using mcconnell dowell 2021 annual report. Can u find out what is the a. Assets Ratio of the company and explain what this means. b. Liability Ratio of the company and explain what this means. c....
-
1. When constrained by a limiting resource, managers often seek to produce those products which have: a The highest selling prices. a The lowest average cost per unit. b The highest contribution...
-
Complete Blue Catering Service Inc.'s (BCS) 2014 Form 1120, Schedule D, and Schedule G (if applicable) using the information provided below. Form 4562 for depreciation is not required. Include the...
-
Nanette works for Piroz and is paid a basic wage of $1,000 a week. Piroz operates the following bonus scheme: (1) Each employee gets a bonus of $4 for every unit they produce in excess of 2,000 units...
-
At the time of her death on September 4, 2012, Alicia held the following assets. __________________________________________ Fair Market Value Bonds of Emerald Tool Corporation...
-
Luc owns a wholesale furniture store. His financial year ends on 30 June. He provided the following trial balance on 30 June 201: Additional information: 1. At 30 June 201: Inventory was valued at...
-
What is the free-rider problem? Why does it discourage innovation in environmental protection and the adoption of high environmental standards? Can anything be done to overcome the free-rider problem?
-
Show a separate graph of the constraint lines and the solutions that satisfy each of the following constraints: a. A 0.25 (A + B) b. B 0.10 (A + B) c. A 0.50 (A + B)
-
What are the key determinants of team efficacy and how do they contribute to team resilience, adaptability, and effectiveness in dynamic and uncertain work contexts ?
-
Finley Heaters Inc. is a mid sized manufacturer of residential water heaters. Sales have grown during the last several years, and the companys production capacity needs to be increased. The companys...
-
Three point charges, A = 2.15 C, B = 6.80 C, and C= -4.10 C, are located at the corners of an equilateral triangle as in the figure above. Find the magnitude and direction of the electric field at...
-
The company produces broccoli at three plants, which are delivered to two customers via two warehouses. Shipments between plants are allowed after the packaging has been completed. This also applies...
-
Let f(x,y) = 2x + 7xy, find f(0, -3), f(-3,2), and f(3,2). f(0, -3- (Simplify your answer.)
-
Write up an assessment record for one of the children/young people in a learning environment. The record must be set out clearly showing: - a) Your assessment of the learner's development b) How the...
-
What are the key trends in your industry, and how might they impact your business?
-
You have estimated that your firm's total cost function for a particular product is TC = 7q^2-11q+558, where TC is total cost and q is units of output. What is the firm's marginal cost for this...
-
8 9 Techno Industries is a Canada wide company, which manufactures and sells rock climbing equipment. The President reviewed the 2021 Annual Edmonton Region Budget Report and promptly called a...
-
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
-
In its audit of the Oz Lollypop Company, Able and Ready, CPAs, discovered that the firm did not record a $ 975,000 expense in 2012 ( for both book and tax purposes). Oz never paid this amount due on...
-
Calculate the present value of each of the following cash flows at 8% using interest tables, a financial calculator, or a spreadsheet: a. $ 15,000 is to be received at the end of each of the next six...
-
CPF Corporation reported the following results for its first three years of operation: Description Amount 2013 Income (before income taxes). $ 80,000 2014 Loss (before income taxes)... (620,000) 2015...
-
Consider the purchases function of a manufacturing company. To overcome a downward profitability trend, management recently instituted a "just-in-time" system of acquiring raw materials for its...
-
Explain how creating a process map and internal threat analysis helps in determining the extent to which substantive testing is to be performed on the accounts associated with the supply chain and...
-
The following are routine procedures for the audit of the purchases process. For each procedure, (1) state whether it is a test of controls or a substantive test of transactions or balances, (2)...
Study smarter with the SolutionInn App