compute a vertical analysis of each income statement comment on any differences in t 613797

Comprehensive Income

IDQ’s income statement data for the year ended November 30, 1999, is presented below (dollars in millions).

Don't use plagiarized sources. Get Your Custom Essay on
compute a vertical analysis of each income statement comment on any differences in t 613797
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page
Order Essay

11/30/99

Net sales

$340

Cost of goods sold

249

Gross profit

91

Selling, general, and administrative

40

Income before depreciation

51

Nonoperating income

2

Income before tax

53

Provisions for income tax

20

Net income

$ 33

Dividends

12

Unrealized gain on securities

10

Foreign exchange adjustement

3

Allowance for bad debts

13

Required

a. Review the annual income statement for the fiscal year ended 11/30/99. Identify any unusual items and any items that shouldn’t appear on an income statement.

b. Using the data presented, prepare a statement of comprehensive income. Evaluate and discuss the differences between the income statement as originally shown and your statement of comprehensive income.

c. Compute a vertical analysis of each income statement. Comment on any differences in the return on sales ratio as derived from each statement.

d. Using the following balance sheet data, compute each ratio, and comment on any differences in the ratios as derived from each statement.

i. Assuming average assets of $400 (million), calculate return on assets (ROA).

ii. Assuming average shareholders ‘equity of $150 (million), calculate return on equity (ROE).

superadmin

Recent Posts

communication MA | Solution Aider

part one For this assignment you are to to watch: Shattered Glass Write a two…

3 years ago

Standard Project – WebServers | Solution Aider

Standard Project - WebServers. Instruction attached. Need all requirements, you do not have to make…

3 years ago

Discussion post 2 | Solution Aider

Read classmates post and respond with 100 words:The International Categorization of Diseases, Tenth Revision, Clinical…

3 years ago

case sttudy | Solution Aider

Most Americans have at least 1 issue that is most important to them. Economic issues…

3 years ago

Methodologies Report | Solution Aider

For this assignment, you are the court intake processor at a federal court where you…

3 years ago

outline about gender equality | Solution Aider

Use a standard outline format to lay out how you are going to write your…

3 years ago