Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem: A common size income statement for Creek Enterprises' 2005 operations follows. Using company's 2006 income statement presented in Problem 2-12, create the 2006 common size income statement & compare it to 2005 statement. Determine which areas require further analysis & investigation?

Creek Enterprises Common-Size Income Statement for the Year Ended December 31, 2005

Sales revenue ($35,000,000)

100.0%

Less: Cost of goods sold

65.9

Gross profits

34.1%

Less: Operating expenses

 

Selling expense

12.7%

General and administrative expenses

6.3

Lease expense

0.6

 

Creek Enterprises Common-Size Income Statement for the Year Ended December 31, 2005

Depreciation expense

3.6

Total operating expense

23.2

Operating profits

10.9%

Less: Interest expense

1.5

Net profits before taxes

9.4%

Less: Taxes (rate = 40%)

3.8

Net profits after taxes

5.6%

Less: Preferred stock dividends

0.1

Earnings available for common stockholders

5.5%

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922691

Have any Question? 


Related Questions in Cost Accounting

Abc costing1 assume you own a business that makes two

ABC COSTING 1. Assume you own a business that makes two complementary products for which you allocated manufacturing overhead proportionally. A competitor is trying to undercut your price for one of the products. How mig ...

1 what factors influence the costs of supplying such public

1. What factors influence the costs of supplying such public goods as police protection and national defense? What might cause these costs to go up or down, and how would such change affect your taxes? 2. How does a pers ...

1 avatar company uses the indirect method to prepare its

1) Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:   2014 2013 Increase/decrease Cash $  21,000 $  18,000  $  3,000 ...

Taskthe purpose of this assignment is to continue to

Task The purpose of this assignment is to continue to develop skills in costing systems. The assignment emphasises the role of control in managing the production of goods and services efficiently in the workplace. Each q ...

Part 1maintaining and controlling projectshow does evm

Part 1 Maintaining and Controlling Projects How does EVM operationalize or put into practice the management of trade-offs implied by the triple constraint discussed since the beginning of the course? Does it allow a bala ...

This is a comprehensive problem all contained on this

This is a comprehensive problem all contained on this spreadsheet tab. Process Job Costing and Equivalent Units of Production Bay Manufacturing produces paint. The company has two processes: mixing and packaging. The ing ...

Learning outcomes1 identify and critically analyse

Learning Outcomes 1. Identify and critically analyse principles and trends in Performance Measurement and Control. 2. Determine the different budgeting techniques and critically evaluate their use in short term decision ...

The budgeted and actual revenues and expenditures of

The budgeted and actual revenues and expenditures of Seaside Township for a recent year (in millions) were as presented in the schedule that follows:  1. Prepare journal entries to record the budget. 2. Prepare journal e ...

Cool ride skis ltd case studyit is the end of 2015 and

COOL RIDE SKIS LTD CASE STUDY It is the end of 2015 and Grace Miller, senior management accountant for Cool Ride Skis Ltd has been analysing the Victorian division's 2015 results. Both she and the company's Managing Dire ...

Assignment - task specificationthis case study is designed

Assignment - Task Specification This Case Study is designed for you to demonstrate your abilities in relation to the following subject learning outcomes (see Subject Outline) Case Study - Seafarer Kayaks Your team (group ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate