Plz!! Help ASAP 25. Perfom a vertical analysis on the Income statements of Sport

Question

Plz!! Help ASAP 25. Perfom a vertical analysis on the Income statements of Sports Emporium and All Sports. All Sports Sports Emp Sales COGS Gross profit Operating expenses Operating Income Other income (expense) Income before tax Income tax expense Net income 3,200,000 2,050,000 1,150,000 760,000 390,000 8,000 398,000 95,000 303,000 2,420,000 1,330,000 1,090,000 590,000 500,000 5,000 505,000 130,000 375,000 A net loss will be the result during a month when: a. Assets are greater than liabilities b. Assets are greater than revenues 26. Expenses are greater than revenues Revenues are greater than revenues A company makes a credit sale of $700 on June 13th, terms 2/10, n30. The company acceptsa return of $75 on June 16th. Make the journal entry to record the receipt of full payment on June 20th. 27.

Explanation / Answer

Question - 25

Change is measured taking Sport Emp as base or starting point. Similarly percentage change is computed taking Sport Emp as the base for comparision.

Question - 26

When expenses exceeds the revenues we will have net loss for that period. ......So .....select Option - C

Question - 27

When sales returns are accepted, the amount due on account = 700 - 75 = 625. If this amount is paid within 10 days, we will have a discount of 2%. i .e 625 * 2/100 = 12.5

Note ......given payment date June - 20 is with in the 10 days permitted for discount.

Sp Emp All Sp Change % Sales 3,200,000 2,420,000 -780,000 -24.4 COGS 2,050,000 1,330,000 -720,000 -35.1 Gross profit 1,150,000 1,090,000 -60,000 -5.22 Operating expenses 760,000 590,000 -170,000 -22.4 Operating income 390,000 500,000 110,000 28.21 Other income 8,000 5,000 -3,000 -37.5 Income before tax 398,000 505,000 107,000 26.88 Income tax 95000 130000 35,000 36.84 Net income 303,000 375000 72,000 23.76

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