Year 2010 2011 2012 2013 2014 2015 2016 2017 Income Statement Sales $100.00 $120
ID: 2819193 • Letter: Y
Question
Year 2010 2011 2012 2013 2014 2015 2016 2017 Income Statement Sales $100.00 $120.00 $144.00 $172.80 $207.36 $248.83 $298.60 $358.32 Cogs $60.00 $72.00 $86.40 $103.68 $124.42 $149.30 $179.16 $214.99 GSA $6.00 $7.20 $8.64 $10.37 $12.44 $14.93 $17.92 $21.50 What has the GSA growth rate and ratio of GSA to COGS to Sales been? Year 2010 2011 2012 2013 2014 2015 2016 2017 Income Statement Sales $100.00 $120.00 $144.00 $172.80 $207.36 $248.83 $298.60 $358.32 Cogs $60.00 $72.00 $86.40 $103.68 $124.42 $149.30 $179.16 $214.99 GSA $6.00 $7.20 $8.64 $10.37 $12.44 $14.93 $17.92 $21.50 What has the GSA growth rate and ratio of GSA to COGS to Sales been?Explanation / Answer
What has the GSA growth rate
For computing the growth rate .......... let growth rate = g. Then the required equation will be
Base GSA ( 1 + g )n = Current GSA
6 (1 + g )7 = 21.5
( 1 + g ) 7 = 21.5 / 7 = 3.07142857
( 1 + g ) = (3.07142857)1/7 = 1.1739
g = 0.1739 or 17.39 %
Ratio of GSA to COGS to Sales been
= GSA / COGS * 100 = 6 / 60 * 100 = 10% .......... This remains constant in all the years
Check if answer is needed in % terms or not. Otherwise the answer without % = 0.10
Ratio of GSA to COGS to Sales been
= GSA / COGS * 100 = 6 / 60 * 100 = 10% .......... This remains constant in all the years
Check if answer is needed in % terms or not. Otherwise the answer without % = 0.10
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