AutoSave Off be Week #2 Written Problem Assignments - Last Modified: May 5 Rachel Sullivan RS File Home Insert Draw Page Layout Formulas Data Review View Help Search Share Comments E14 X fi =+C14/+C$5 A B C J K L M N o P 0 R S 4 2017 5 Sales Cost of goods sold Gross profit on sales D 2016 560,000 300,000 260,000 600,000 430,000 170,000 E 2017 100.0% 71.7% 28.3% 6 F 2016 100.0% 40,000 53.6% 130,000 46.4% (90,000) 7.1% 43.3% -34.6% 7 8 9 10 11 12 13 Sales salaries Travel & Entertainment Professional Fees Office Salaries Rent Utlitities Office Expenses Maintenance & Repair Other operating expenses Operating income 45,000 2,550 700 65,000 6,000 1,500 500 6,000 2,750 40,000 42,100 2,000 600 66,000 6,000 6,000 600 15,000 2,700 119,000 7.5% 0.4% 0.1% 10.8% 1.0% 0.3% 0.1% 1.0% 0.5% 6.7% 7.5% 2,900 0.4% 550 0.1% 100 11.8% (1,000) 1.1% 1.1% (4,500) 0.1% (100) 2.7% (9,000) 0.5% 50 21.3% (79,000) 6.9% 27.5% 16.7% -1.5% 0.0% -75.0% -16.7% -60.0% 1.9% -66.4% 14 15 16 17 18 19 20 Interest expense Income before income tax 30,000 10,000 25,000 94,000 5.0% 1.7% 4.5% 5,000 16.8% (84,000) 20.0% -89.4% 21 22 23 Income tax expense Net income 3,000 7,000 20,000 74,000 0.5% 1.2% 3.6% (17,000) 13.2% (67,000) -85.0% -90.5% 24 25 26 27 Required: Review the comparative income statement for Simeon Company 1) Identify major factors that influence results 2) Comment on underlying issues that could be causing the factors that you identified 28 29 30 Problem - Simeon Problem - ABC vs XYC - 100% Type here to search | 0 . + a P X 10:29 AM 5/17/2020