Requirement $1.$ Using the statement of operations excerpt in$$ dollars, what can you say about how

ZoaringZoaring

is doing in the second half of

$20192019$

compared to the second half of

$20182018?$

What can you say about how

ZoaringZoaring

is doing for the twelve months ended December$31,$

$20192019$

compared to December$31,$

$20182018?$

Can you tell if the rate of increase is greater for revenues or expenses from

$20182018$

to

$20192019?$

Why or why$$ not? $($Round the percentages to the nearest tenth$$ percent, X$.$X$\%.)$

In both the second half and full year of $2019$ compared to $2018,$ although revenue is

$$

loss from operations is

$$

Revenue

$$

$$

$\%$ while operating expenses

$$

$$

$\%.$

Part $2$

Requirement $2.$ Using the statement of operations excerpt in dollars$$ again, why is the loss from operations larger in

$20192019$

than in

$20182018?$

$$

$$

Expenses

Revenues

increased at a greater rate than

$$

$$

expenses

revenues

$.$

Part $3$

Requirement $3.$ Using the $$common$-$size statement of operations$$ excerpt, what can you say about how

ZoaringZoaring

is doing in the second half of

$20192019$

compared to the second half of

$20182018?$

What can you say about how

ZoaringZoaring

is doing for the twelve months ended December$31,$

$20192019$

compared to December$31,$

$20182018?$

Is the rate of increase greater for revenues or expenses from

$20182018$

to

$20192019?$

In both the second half and twelve months of

$20182018$

compared to

$20192019,$

the gross profit

$$

$$

decreased

increased

and the loss from operations

$$

$$

decreased

increased

$.$

Since there

$$

$$

is

is not

a loss from$$ operations, the rate of increase for expense is

$$

$$

higher

lower

than the rate of increase for revenue.

Part $4$

Requirement $4.$ Using the $$common$-$size statement of operations excerpt$$ again, why is the loss from operations larger in

$20192019$

than in

$20182018?$

$$Also$,$ what can you say about the mix of advertising revenue versus subscription$$ revenue?

The cost of revenue$-$ content acquisition$$ costs, sales and marketing$$ expense, product development$$ expenses, and general and administrative expenses

$$

$$

all decreased

all increased

in

$20192019.$

Advertising revenue

$$

$$

decreased

increased

and subscription revenue

$$

$$

decreased

increased

in

$20192019.$

Part $5$

Requirement $5.$ Which statement$($dollars versus$$ common$-$size$)$ is more useful for analyzing the financial performance of

ZoaringZoaring

in this$$ case? Explain.

The

$$

$$

common$-$size statement

statement in dollars

is more beneficial because you are able to calculate the rate at which

$$

$$

both expense and revenue is

expenses are

revenues are

changing.