2024 – Part II P3 20 Common size statement analysis P3 20 A common size income statement for Creek Enterprises 2014 operations follows Using the firm s
A common-size income statement for Creek Enterprises 2014 – 2024
Part II P3-20 Common-size statement analysis
P3-20 A common-size income statement for Creek Enterprises’ 2014 operations follows. Using the firm’s 2015 income statement presented in Problem 3–18, develop the 2015 common-size income statement and compare it with the 2014 statement.
Which areas require further analysis and investigation?
|
Creek Enterprises Common-Size Income Statement for the Year Ended December 31, 2014 |
Creek Enterprises Income Statement for the Year Ended December 31, 2015 |
|
|
Sales revenue ($35,000,000) 100.0% |
Sales Revenue $30,000,000 |
|
|
Less: Cost of goods sold 65.9 |
Less: Cost of goods sold 21,000,000 |
|
|
Gross profits 34.1% |
Gross profits $ 9,000,000 |
|
|
Less: Operating expenses |
Less: Operating expenses |
|
|
Selling expense 12.7% |
Selling expense $ 3,000,000 |
|
|
General and administrative expenses 6.3 |
General and administrative expenses 1,800,000 |
|
|
Lease expense 0.6
|
Lease expense 200,000 |
|
|
Depreciation expense 3.6
|
Depreciation expense 1,000,000 |
|
|
Total operating expense 23.2 |
Total operating expense $6,000,000 |
|
|
Operating profits 10.9% |
Operating profits $ 3,000,000 |
|
|
Less: Interest expense 1.5 |
Less: Interest expense 1,000,000 |
|
|
Net profits before taxes 9.4% |
Net profits before taxes $ 2,000,000 |
|
|
Less: Taxes (rate 5 40%) 3.8 |
Less: Taxes (rate 5 40%) 800,000 |
|
|
Net profits after taxes 5.6% |
Net profits after taxes $ 1,200,000 |
|
|
Less: Preferred stock dividends 0.1 |
Less: Preferred stock dividends 100,000 |
|
|
Earnings available for common stockholders 5.5% |
Earnings available for common stockholders$ 1,100,000 |
|
Need assignment writing services that are 100% risk-free. Our writers are capable of providing the best assignment help to students in globally at best rates.
Assignment online is a team of top-class experts whose only goal is to give you the best assignment help service. Follow the link below to order now...
#write essay #research paper
