Problem - Vertical Analysis of Income Statement

Assignment Help Accounting Basics
Reference no: EM132479946

Problem - Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

 

Current Year

Previous Year

Sales

$4,000,000

$3,600,000

Cost of goods sold

2,280,000

1,872,000

Selling expenses

600,000

648,000

Administrative expenses

520,000

360,000

Income tax expense

240,000

216,000

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

Reference no: EM132479946

Chi-square goodness-of-fit test

a) Explain why the chi-square goodness-of-fit test is not an appropriate way to find out. b) What might you do instead of weighing the nuts in or- der to use a x2 test?

Calculation of annual rental payments

Garcia's incremental borrowing rate is 12% and the interest rate implicit in the lease agreement is 10% (this is known to Garcia). Both Graves and Garcia use straight-line d

What you understand by the term going concern

Briefly describe what you understand by the term 'going concern' and state the minimum period you would expect the company to continue in business for it to be considered a

Some high-level planning during your project initiation

Discussion Question 1: The initiating process is the formal beginning of a new project. As the project manager for the Ground Control System Project, what would you need to

What transfer price you suggest to induce both decisions

Part C82 is an essential component for Division D's only product; the division sells 200,000 units per year at a price of $120 per unit. Division D's fixed costs are $4,000,

Journal entries to record payroll and employer expense

Robin Bradley received a paycheck from her employer in the amount of $776.35. The paycheck stub indicated that in calculating her $776.35 net pay, $139.75 had been withheld

How would the assets appear on the balance sheet

Any plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2010 on these newly acquired assets.

The annual interest charges

On January 1, 2010, the Sanders Corporation purchased equipment having a fair value of $68,301.30 by issuing a non interest bearing, $100,000, four year note due December 31,

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd