acct301 week 3 problem 1 and problem 2 ratios analysis use it as a guide 495954
Aug 29, 2021 | Uncategorized
| Problem 1 |
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| Required:Express each income statement component as a percentage of sales, and comment on the trends in each line from 2012 to 2013. |
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2013 |
% Sales |
2012 |
% Sales |
Comments |
| Sales |
$ 1,000,000 |
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$ 1,200,000 |
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| Cost of goods sold |
$ 450,000 |
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$ 600,000 |
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| Gross margin |
$ 550,000 |
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$ 600,000 |
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| Operating expenses |
$ 600,000 |
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$ 450,000 |
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| Net income |
$(50,000) |
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$ 150,000 |
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| Problem 2 |
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| Required:Compute (1) accounts receivable turnover for 2013, (2) the inventory turnover for 2013, and (3) the net margin for 2012. |
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| Balance sheet items |
2013 2012 |
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Accounts receivable |
$ 380,000.00 |
$ 376,000.00 |
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Allowance for doubtful accounts |
$ (20,000.00) |
$ (16,000.00) |
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Net accounts receivable |
$ 360,000.00 |
$ 360,000.00 |
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Inventory |
$ 480,000.00 |
$ 440,000.00 |
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| Income statement items |
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Sales |
$ 3,400,000.00 |
$ 3,080,000.00 |
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Cost of goods sold |
$ 1,600,000.00 |
$ 1,440,000.00 |
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Operating expenses |
$ 780,000.00 |
$ 680,000.00 |
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