Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: For 2008, Doane Inc. reported its most significant increase in net income in years. In the end of the year, Jeff Newton, the president, is presented with the following condensed relative income statement:

Doane, Inc.

Comparative Income Statements

for the years ended Dec 31, 2007 and Dec 31, 2008

 

 

 

2007

2008

 

 

 

 

 

Sales

 

 

$73,200

$91,500

Sales Return and Allowances

 

 

1200

1440

Net Sales

 

 

$72,000

$90,060

Cost of Goods Sold

 

 

42000

50400

Gross Profit

 

$30,000

$39,660

Selling Expenses

 

14400

16560

Administrative Expenses

 

 

$9,600

$10,800

Total Operating Expenses

24000

27360

Income from Operations

$6,000

$12,300

Other Income

 

 

600

600

Income before Income Tax

$6,600

$12,900

Income Tax Expense

 

1440

2880

Net Income

 

 

$5,160

$10,020

Instructions:

[A] Make a comparative income statement with horizontal analysis for the 2 year period using 2007 as the base year. Round your answer to one decimal place.

[B] To extend the data permit, make a comment on the significant relationships revealed by the horizontal analysis prepared in [1].

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M916097

Have any Question? 


Related Questions in Basic Finance

Ideas for future research studies often can be obtained

Ideas for future research studies often can be obtained from the discussion sections of research reports. Occasionally, the researchers provide explicit suggestions for new research studies. At other times, the suggestio ...

Problemsissuing bonds at face value-to illustrate assume

Problems: Issuing Bonds at Face Value -To illustrate, assume that Devor Corporation issued 100, 5-year, 10%, $1,000 bonds dated January 1, 2007, at 100 (100% of face value). Assume interest is payable annually on January ...

Microsoft has a bond outstanding symbol msftgb with a 420

Microsoft has a bond outstanding (symbol: MSFT.GB) with a 4.20% coupon rate and a yield to maturity (continuously compounded) of 1.535%. The bond expires in June, 2019, and pays interest semi-annually. Use a face value o ...

A newly issued 10 year bond is valued at par on june 1 2017

A newly issued 10 year bond is valued at par on June 1, 2017. The bond has an annual coupon of 8.0 percent. On June 1 2020, the bond has a yield to maturity of 7.1 percent. The first coupon is invested at 8.0 percent and ...

Company a has inventory equal to 100000 with a current

Company A has inventory equal to $100,000 with a current ratio of 2.3 and quick ratio of 1.8, what is the level of the firms current liabilities?

Explain the difference between a forward contract and an

Explain the difference between a forward contract and an option? What factors distinguish a forward contract from a futures contract? What do forward and futures contracts have in common? What advantages does each have o ...

Kms corporation has assets with a market value of 500

KMS Corporation has assets with a market value of $500 million, $50 million of which are cash. It has debt of $200 million, and 10 million shares outstanding. Assume perfect capital markets. a. What is its current stock ...

1 a present an argument for why translation exposure is

1 .(a) Present an argument for why translation exposure is relevant to an MNC. (b) Present an argument for why translation exposure is not relevant to an MNC. 2 .Walt Disney Inc built the EuroDisney theme park in France ...

Barilla is an italian multinational food company which

Barilla is an Italian multinational food company which ‘has significantly believed in B2B e-commerce and, in particular, in EDI (Electronic Data Interchange), especially in terms of Web-EDI, which supports the orderdeliv ...

Constructive dividendsbullexplain the concept of

Constructive Dividends • Explain the concept of constructive dividends. Give examples. • Construct three original examples of situations in which the IRS might claim constructive dividends. • Suggest ways to ensure that ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen