Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 13 - Financial Analysis: The Big Picture - Exercises: E13-6

Answer

Step1: WINFREY CORPORATION Comparative Income statements For the year ended December 31, Increase (Decrease) during 2010 2007 2006 Amount Percent Net Sales 598,000 520,000 78,000 15 Cost of goods sold 477.000 450,000 27.000 6 Gross Profit 121,000 70,000 51,000 72.86 Other Expenses 80,000 45,000 35,000 77.78 Step2: 2007 Percent 2007 Percent Net Sales 598,000 100 520,000 100 Cost of goods sold 477,000 79.77 450,000 86.54 Gross Profit 121,000 20.23 70,000 13.46 Other Expenses 80,000 13.38 45,000 8.65

Work Step by Step

Step1: Net Income 41,000 25,000 16,000 60% Step2: Net Income 41,000 6.85 25,000 4.81
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.