M Exam 3 C b ezto.mheducation.com/hm.tpx xCRefer To The Folon x Q Chapter 12 fla

Question

M Exam 3 C b ezto.mheducation.com/hm.tpx xCRefer To The Folon x Q Chapter 12 flashicaY Refer to the followr x Refer To The Follow × Chapter 12 flashca X Refer to the follow X ACCOUNTING m 3 Question 23 (of 28) value 2.00 points Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 trend percents for cost of goods sold using Year 1 as the base. Yeer 2 Yeer 1 Net sales Cost of goods sold $282.200 150,700 54,040 29,220 S 232.600 130,790 52,040 21,020 Net earnin 0 115.2%for Year 2 and 100.0% for Year 1 67.0% for Year 2 and 64.6% for Year 1. O 53.4% for Year 2 and 56.2% for Year 1 0359% for Year 2 and 39.8% for Year 1 121.3% for Year 2 and 100.0% for Year 1. 0 . 28

Explanation / Answer

Answer 1.

Year 2 trend percentage for cost of good sold = Year 2 cogs / Year 1 Cogs

= 150700/130790 = 1.152 = 115.2%

Year 1 trend percentage for cost of good sold = Year 1 cogs / Year 1 Cogs

= 130790/130790 = 1 = 100%

So, (a) is correct

Answer 2.

Debt Equity Ratio for Year 2 = Total Laibilities / Total Equity

= 173,400/146,900 = 1.18

So, (a) is correct

Answer 3.

Year 2 trend percentage for Net Sales = Year 2 Net Sales / Year 1 Net Sales

= 282,700/232,700 = 1.215 = 121.5%

Year 1 trend percentage for Net Sales = Year 1 Net Sales / Year 1 Net Sales

= 232,700/232,700 = 1 = 100%

So, (a) is correct

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.