YR17. Do a common size analysis of this income statement data Income Statement:
ID: 2517008 • Letter: Y
Question
YR17. Do a common size analysis of this income statement data
Income Statement: Industry average and competitors year 17 (BSG, FTR) Team B Net Sales$424,114 Cost of Pairs $190,593 % | Team D $273,371 $138,913 $20,679 $48,980 $9,565 $55,234 -$1,293 Industry $412,424 $210,852 $28,625 S68,304 $10,921 S93,721 $1,624 $273 371Arerare Revenues Sold Warehouse $26,300 Marketing S69,592 Admin Espenses$9264 Opertits 5128.365 Profit Interest Expense -$6,149 $15,458$27,105 S40,354 Income Taxes $36.069 $8,301 S63,245 $4,758 Total Dividend Payment Shares of Stock $0 8,500 8,385 8,56Explanation / Answer
Analysis:
The operating profit ratio for Team B is higher than the industry average , whereas for Team D the operating profit ratio is lower then the industry average.
The reason for this difference is that Team B is able to keep all its expenses below the level of the industry average, whereas Team D is unable to do so except a marginal reduction in the case of cost of pairs sold.
Team B Team D Industry Average Amount % Amount % Amount % Net Sales Revenues 424114 100.00% 273371 100.00% 412424 100.00% Cost of pairs sold 190593 44.94% 138913 50.81% 210852 51.13% Warehouse expenses 26300 6.20% 20679 7.56% 28625 6.94% Marketing expenses 69592 16.41% 48980 17.92% 68304 16.56% Admn. Expenses 9264 2.18% 9565 3.50% 10921 2.65% Operating Profit 128365 30.27% 55234 20.20% 93721 22.72% Interest Expense -6149 -1.45% -1293 -0.47% 1624 0.39% Income Tax expense 40354 9.51% 15458 5.65% 27105 6.57% Net Profit 94160 22.20% 36069 13.19% 63245 15.33% Total dividend payment 0 8301 4758 Shares of stock 8500 8385 8565Related Questions
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