The following income statement data (in millions) for Donn Inc. and Houston Comp
ID: 3240996 • Letter: T
Question
The following income statement data (in millions) for Donn Inc. and Houston Company were taken from their recent annual reports:
PART C. Based on (A) and (B), how does Donn compare to Houston? Check all that apply.
Houston’s operating expenses as a percent of net sales are approximately double that of Donn.
Donn’s reported a profit/loss as a percent of net sales is better than Houston’s.
Houston’s cost of goods sold as a percent of net sales is less than Donn’s cost of goods sold as a percent of net sales.
Donn’s operating expenses as a percent of net sales are approximately double that of Houston.
Instructions The following income statement data (in m for Donn Inc. and Houston Company were taken from their recent annual reports: Donn Houston 63,000.00 $124,000.00 2 Net sale 50,085.00 000 Cost of goods sold (expense) 4 operating expenses (9,200.00) 39,600.00 $3,715.00 $(13,064.00) 5 Operating income (loss)Explanation / Answer
Ans:
First 3 statements are correct
Houston’s operating expenses as a percent of net sales are approximately double that of Donn.
Donn’s reported a profit/loss as a percent of net sales is better than Houston’s.(Profit in case of Donn)
Houston’s cost of goods sold as a percent of net sales is less than Donn’s cost of goods sold as a percent of net sales.
Donn percentage sales 63000 cost 50085 79.50 oper. Exp. 9200 14.60 income(Profit) 3715 5.90 3715 Houston sales 124000 cost 97464 78.60 oper. Exp. 39600 31.94 income(loss) 13064 10.54Related Questions
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