Interest and taxes, Taxation

Assignment Help:

Revenue: Revenue is how much a company receives in income when making sales. Revenue increased from 2011 to 2012 by 14.5%. This is great considering poor economic conditions.

Gross Profit: Gross profit is how much net profit a company makes after subtracting the cost of goods from revenue. The gross profit is a large amount of the sales revenue and stays consistent throughout the last three years (41%). This means Coach is making more of a profit from sales rather than to make the product itself.

SG & A[1] Expenses: SG&A Expenses are made up of direct and indirect expenses. SG&A expenses seem to be a large part of the sales revenue, which can be problematic; however, it remains stable throughout the last three years. The stability means that Coach's management is keeping tight control over how much SG&A expenses are used.
Operating Income (EBIT[2]): Is pretty stable at 31-32% over the three years. This helps to understand whether the company is operating efficiently, which Coach seems to be based on their stable numbers.

Operating Income (EBIT[3]): Increased a percentage each year going from 20%-22% throughout the three years. It seems to be relatively unstable based upon the trend.

In the end, based on the income statement information, Coach has been thriving even with the poor economic conditions.

[1] SG&A = Selling, General, and Administrative Expenses.

[2] EBIT = Earnings Before Interest and Taxes.

[3] EBIT = Earnings Before Interest and Taxes.


Related Discussions:- Interest and taxes

What method of tax accounting used, Jenny is 35 years of age, single and is...

Jenny is 35 years of age, single and is a professional hairdresser. She was born in Australia, however she often travels overseas for extended periods for work purposes. Jenny r

Research assignment, The following assignment is due the last day of class ...

The following assignment is due the last day of class or at the final exam, in hard copy format only. You may complete the assignment in groups of 2-4, if desired. Indicate your

Calculate average tax-rate , Thomas Crown expects to earn the following str...

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the ‘Pay Yourself Firs

Which of the following entities may not use the cash method, Which of the f...

Which of the following entities may not use the cash method of accounting? A partnership with average annual gross receipts in excess of $5 million. A C corporation whose avera

Research, Hi can you help me with my tax research and answer the following ...

Hi can you help me with my tax research and answer the following After reading the Treasury Department Circular 230 and AICPA statement of standard for tax services, answer the fo

Statements on Standards for Tax Services, 28) Explain how Treasury Departme...

28) Explain how Treasury Department Circular 230 differs from the AICPA’s Statements on Standards for Tax Services.

Taxable income for the year, Avis's taxable income for the year is $300,000...

Avis's taxable income for the year is $300,000 and Best's taxable income for the year is $425,000. For each of the scenarios provided, (a) state if a control group has been created

Individual income taxation, John Alan Kelly and Rosalyn Elaine Kelly, a mar...

John Alan Kelly and Rosalyn Elaine Kelly, a married couple, live at 3822 Robin Lane Houston, Texas 77049-7236.  Their home telephone number is (713) 468-9721, home fax number is (7

Write Your Message!

Captcha
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