The Stair Company sells computer parts through a retail store that it operates. The firms comparative income
Question:
INSTRUCTIONS
1. Prepare both a horizontal and a vertical analysis of the statements. Carry all calculations to two decimal places, and then round to one decimal place. (Leave all vertical analysis percentages unadjusted in this problem.)
2. Make written comments about any of the results that seem worthy of investigation.
Analyze: Based on your analysis, which expense category experienced the greatest percentage change?
Transcribed Image Text:
The Stalr Company Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts 2019 2018 Revenue 기6|5|01010 9000 1기516|01010 Sales 905000 15000 890000 Less Sales Returns and Allowances Net Sales Cost of Goods Sold Merchandise Inventory, January 1 84000 31016|0이0 319|00이0 86000 304 000 586000 8lolololO 262000 Net Purchases Total Merchandise Available for Sale 342 00O Less Merchandise Inventory, December 31 8 4 0101O Cost of Goods Sold 258 00O Gross Profit on Sales 498 ololO Operating Expenses Selling Expenses Sales Salaries Expenses 8기000 8700 25200 120900 80lolol0 elololol Payroll Tax Expense-Selling Other Selling Expenses Total Selling Expenses 115 2lolol 103 2lolo General and Administrative Expenses Officers' Salaries Expense Payroll Tax Expense-Administrative Depreciation Expense Other General and Administrative Expenses Total General and Administrative Expenses 130lololO 110000 11000 8 25l0 기0010 13000 8 250 945 0 136250 1610기0이 Total Operating Expenses 81600 239450 31014|4|0이 Net Income before Income Taxes 258550 Income Tax Expense 91320 717151615 Net Income after Income Taxes 213080 180985 The Stalr Company Comparative Balance Sheet December 31, 2019 and 2018 Amounts 2019 2018 Assets Current Assets 111022 915|00이 816|0이0 46275 87 84000 Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Supplies 95olo 5 ololo 1200 302722 slolo 2 23 275 Total Current Assets Property. Plant, and Equipment Land 715 ololol 715 ololo Building and Equipment Less Accumulated Depreciation Net Book Value-Building and Equipment Total Property, Plant, and Equipment 82500 33000) 49500 124500 427222 82500 24750 57750 132750 356025 Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Sales Tax Payable Payroll Taxes Payable Income Taxes Payable |2기000 1000 1142 5|기이이0 3000 1025 1lololo 51이00 Total Current Liabilities 66025 Long-Term Liabilities Mortgage Payable Total Long-Term Liabilities Total Liabilities 39000 45 000 45000 111 ol2 5 39 000 69 142 Stockholders' Equity Common Stock ($1 par, 10,000 shares authorized; 10,000 shares issued and outstanding) 1100이이 lolololol 1olololo Paid-in Capital-Common Stock Retained Earnings 1olololo 313|8|018|이 2 25 000 Total Stockholders' Equity 3 58 ol8|o 245000 Total Liabilities and Stockholders' Equity 4 27222 356025
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1 The Stair Company Comparative Income Statement For Years Ended December 31 2019 and 2018 ACCOUNT NAME AMOUNTS PERCENT OF NET SALES 2019 2018 2019 2018 PERCENT Revenue Sales 9 0 5 0 0 0 7 6 5 0 0 0 1...View the full answer
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Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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