Prepare horizontal analysis of the change in key accounts; at least 3 ratios Prepare vertical analysis of
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Prepare horizontal analysis of the change in key accounts; at least 3 ratios |
Prepare vertical analysis of key expense accounts (amount as a percent of sales); at least 2 ratios for each year |
Falls Jewelry Co. | ||||||||||
Income Statement | ||||||||||
For the year ended December 31 | ||||||||||
(000s) | 2022 | 2023 | ||||||||
Sales - All on Credit | $ 500,000 | $ 565,000 | ||||||||
Cost of Goods Sold | 220,000 | 226,000 | ||||||||
Gross Profit | 280,000 | 339,000 | ||||||||
Salaries Expense | 120,000 | 170,000 | ||||||||
Advertising Expense | 40,000 | 36,000 | ||||||||
Depreciation Expense | 13,000 | 16,000 | ||||||||
IT Expenses | 7,000 | 8,000 | ||||||||
Total Expenses | 180,000 | 230,000 | ||||||||
Operating Income | 100,000 | 109,000 | ||||||||
Interest Expense | 14,000 | 21,000 | ||||||||
Income Before Taxes | 86,000 | 88,000 | ||||||||
Income Tax Expense | 17,200 | 17,600 | ||||||||
Net Income | $ 68,800 | $ 70,400 | ||||||||
Average Shares Outstanding | 20,000 | 20,000 | ||||||||
Number of Stores | 150 | 190 | All stores opened on 1/1/23 | |||||||
Stock Price | $ 70.00 | $ 20.35 | ||||||||
1. | - Calculate the following ratios: | |||||||||
2022 | 2023 | |||||||||
Gross profit margin % | 56.0% | 60.0% | ||||||||
Operating profit margin % | 20.0% | 19.0% | ||||||||
Net Profit margin % | 13.8% | 12.5% | ||||||||
Earnings per share | $ 3.44 | $ 3.52 | ||||||||
2022 PE Ratio | 70.0 | 20.35 | ||||||||
2. |
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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