a edugen.wileyplus.com \"Exercise 13-6 Here are the comparative income statement
ID: 2592974 • Letter: A
Question
a edugen.wileyplus.com "Exercise 13-6 Here are the comparative income statements of Culver Corporation. CULVER CORPORATION Comparative Income Statement For the Years Ended December 31 2019 2018 Net sales Cost of goods sold Gross Profit Operating expenses Net income $564,000 444,432 119,568 72,756 $ 46,812 $470,000 387,750 82,250 43,710 s 38,540 Prepare a horizontal analysis of the income statement data for Culver Corporation, using 2018 as a base. (ar percentage are a decrease show the numbers as negative, e.g.-55,000,-20% or (55,000), (2006) percentages to 1 decimal place, eg. 12.1%.) CULVER CORPORATION Comparative Incone StatermentExplanation / Answer
a) horizontal analysis of income statement data for culver corporation
culver corporation comparative income statement
2019
2018
Amount
percentage
Net sales
$564,000
$470,000
$94,000
20%
Cost of goods sold
$444,432
$387,750
$56,682
14.61%
Gross profit
$119,568
$82,250
$37,318
45.37%
operating expenses
$72,756
$43,710
$29,046
66.45%
Net income
$46,812
$38,540
$8,272
21.46%
2018 as base year :
Net sales = 94,000 (increase) = 94,000/470,000 = 20%
Cost of goods sold = 56,682(increase) =56,682/387,750 = 14.61%
Gross profit = 37,318 (increase) = 37,318/82,250 = 45.37%
Operating expenses = 29,046(increase) = 29,046/43,710 = 66.45%
Net income =8,272(increase) = 8,272/38,540 = 21.46%
b) vertical analysis of income statement data for culver corporation
culver corporation condensed income statement
2019 2018
$
Percentage
$
percentage
Net sales
$564,000
100%
$470,000
100%
Cost of goods sold
$444,432
78.80%
$387,000
82.34%
Gross profit
$119,568
21.20%
$82,250
17.50%
Operating expense
$72,756
12.90%
$43,710
9.30%
Net income
$46,812
8.30%
$38,540
8.20%
For 2019:
Net sales = 564,000 = 100%
Cost of goods sold =444,432/564,000 = 78.80%
Gross profit = 119,568/564,000 =21.20%
Operating expense = 72,756/564,000 =12.90%
Net income = 46,812/564,000 = 8.30%
For 2018
Net sales = 470,000 =100%
Cost of goods sold = 387,750/470,000 =82.34%
Gross profit = 82,250/470,000 =17.50%
Operating expense = 43,710/470,000 =9.30%
Net income = 38,540/470,000 =8.20%
2019
2018
Amount
percentage
Net sales
$564,000
$470,000
$94,000
20%
Cost of goods sold
$444,432
$387,750
$56,682
14.61%
Gross profit
$119,568
$82,250
$37,318
45.37%
operating expenses
$72,756
$43,710
$29,046
66.45%
Net income
$46,812
$38,540
$8,272
21.46%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.