Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Chapter 12, Problem 12.5P
To determine
Income statement
It is the statement that tells about the financial position of the health of an organization.
TO CALCULATE Prepare a condensed income statement for the second quarter of
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The owners would like to know what reasons caused the current performance of the company and ask your opinion. Through review of the complete records you were able to obtain this additional information: (1) The selling price for every unit is P7.20 during 2018 and; (2) The marketing department did a tremendous job and was able to increase sales units by 20% during 2019. The percentage increase (decrease) in sales price is:
Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com
a. What was Target's gross margin percentage for the fiscal year ended February 2, 2019 (2018) and 2017? Use "Sales" for these computations
b. What was Target's Return on Sales percentage for 2018 and 2017? Use "Total Revenue" for these computations.
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Income statements (in’000s) of Future Lifestyle and Arvind Lifestyle, the two top textile brands, are provided below. Future lifestyle profits declined in 2014-15. Although Arvind lifestyle posted loss in both periods, the loss has declined.
Required:
a. Examine the performance of Future Lifestyle for the two years and explain why profit has declined despite increase in revenue.
b. Examine how the performance of Arvind Lifestyle for the two years and explain how Arvind lifestyle improved its performance.
c. Compare the performance of the two companies for the year ending March 2015 and explain the differences in performance of the two companies.
(Hint: Prepare common size income statement to analyse the cost structure of the two companies).
Future Lifestyle
Arvind Lifestyle
March 2014
March 2015
March 2014
March 2015
INCOME
Revenue
3122.86
3305.58
1764.95
2291.08
EXPENDITURE
Raw Materials…
Chapter 12 Solutions
Advanced Accounting
Ch. 12 - Prob. 1UTICh. 12 - Prob. 2UTICh. 12 - Prob. 3UTICh. 12 - Prob. 4UTICh. 12 - Prob. 1.1ECh. 12 - Prob. 1.2ECh. 12 - Prob. 1.3ECh. 12 - Prob. 1.4ECh. 12 - Prob. 1.5ECh. 12 - Prob. 1.6E
Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4.1ECh. 12 - Prob. 4.2ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Ratable allocation for nonordinary items. Baxter...Ch. 12 - Prob. 9.1ECh. 12 - Prob. 9.2ECh. 12 - Prob. 9.3ECh. 12 - Prob. 10ECh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - Prob. 12.6PCh. 12 - Prob. 12.7.1PCh. 12 - Prob. 12.7.2PCh. 12 - Prob. 12.7.3PCh. 12 - Prob. 12.8.1PCh. 12 - Prob. 12.8.2P
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