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

The whilst co is analyzing a project that has projected

The Whilst Co. is analyzing a project that has projected sales of $189,400 and costs of $102,300. The project requires an investment in inventory of $15,000 plus another $28,000 in accounts receivable. Fixed assets of $8 ...

1 how do reward systems serve as barriers to enterprise

1. How do reward systems serve as barriers to enterprise integration? 2. In your words, describe and illustrate the great divide. Do you believe the great divide phenomenon is as widely experienced as the text indicates? ...

Katherine wishes to endow a professorship in honor of her

Katherine wishes to endow a professorship in honor of her beloved mycology professor. The University's development office has prepared a proposal for her review, to wit, "The Agnew Chair in Fungus Studies," which will co ...

1 what are the advantages and disadvantages of usinga

1. What are the advantages and disadvantages of using (a) figures, (b) tables, and (c) text to report the results of experiments in the research report? 2. Differentiate between random sampling and random assignment. Whi ...

1 consider three equally spaced sources of strength m

1. Consider three equally spaced sources of strength m placed at (x, y) = ( a, 0),(0, 0), and (a, 0). Sketch the resulting streamline pattern. Are there any stagnation points? 2. Sketch the streamlines and potential line ...

1 what is meant by an agency cost or agency problem do

1. What is meant by an "agency cost" or "agency problem"? Do these interfere with shareholder wealth maximization? Why? What mechanisms minimize these costs/problems? 2. Are ethics critical to the financial manager's goa ...

Corporation y needs to purchase a new machine costing 208

Corporation Y needs to purchase a new machine costing $2.08 million. Management is estimating the machine will generate cash inflows of $396,000 for two years and $300,000 for the following seven years. If management req ...

How is the dupont system useful in analyzing a firms roa

How is the DuPont system useful in analyzing a firm's ROA and ROE? What information can be inferred from the decomposition of ROE into contributing ratios? What is the mathematical relationship between each of the indivi ...

Florence transferred 300000 to an irrevocable trust for her

Florence transferred $300,000 to an irrevocable trust for her two children. She granted them a noncumulative right to withdraw the greater of $5,000 or 5% of trust assets each year. Her children did not make any withdraw ...

1 modify the wagner-within model for the case where the

1. Modify the Wagner-Within model for the case where the warehouse is capacitated. Does the ZIO property still hold? 2. What is the optimal order quantity in the newsboy model if the warehouse is capacitated? 3. Extend t ...

  • 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