Refer to the financial statements of Quaker Oats Company in Problem 9-6 along with the following...

 

Transcribed Image Text:

Refer to the financial statements of Quaker Oats Company in Problem 9-6 along with the following footnote. SUPPLEMENTARY EXPENSE DATA ($ millions) Year 11 Year 10 Year 9 Advertising, media, and $ 277.5 $ 282.8 $ 256.5 production Merchandising $1,129.9 S912.5 S886.2 Total advertising and merchandising $1,407.4 S1,195.3S1,142.7 Maintenance and repairs $ 96.1S 96.6 S $ 93.8 Depreciation expense $ 125.2 S 103.5 $ 94.5 $ 44.3 $ 43.3 $ 39.3 Research and development Required: a Prepare a schedule where maintenance and repairs expense is shown (i) as a percent of revenues and (ii) as a percent of property, plant, and equipment (net) for: (1)Year 9 and Year 10, separately. (2) Total of Years 9 and 10. (3) Average of Years 9 and 10. (4) Year 11. b Interpret the comparison of the spending level for maintenance and repairs in Year 11 with the average level of spending for Years 9 and 10. Refer to the financial statements of Quaker Oats Company in Problem 9-6 along with the following footnote. SUPPLEMENTARY EXPENSE DATA ($ millions) Year 11 Year 10 Year 9 Advertising, media, and $ 277.5 $ 282.8 $ 256.5 production Merchandising $1,129.9 S912.5 S886.2 Total advertising and merchandising $1,407.4 S1,195.3S1,142.7 Maintenance and repairs $ 96.1S 96.6 S $ 93.8 Depreciation expense $ 125.2 S 103.5 $ 94.5 $ 44.3 $ 43.3 $ 39.3 Research and development Required: a Prepare a schedule where maintenance and repairs expense is shown (i) as a percent of revenues and (ii) as a percent of property, plant, and equipment (net) for: (1)Year 9 and Year 10, separately. (2) Total of Years 9 and 10. (3) Average of Years 9 and 10. (4) Year 11. b Interpret the comparison of the spending level for maintenance and repairs in Year 11 with the average level of spending for Years 9 and 10.