All categories

4 years ago

Corp. reported the following on its comparative income statement:

Business

1 answer:

dmitriy555 [2]4 years ago

7 0

Answer:

Corp's comparative income statement:

Horizontal analysis of revenue and gross profit in dollar and percentage terms:

Income statement 2019 2018 Base Year 2017

Revenue $700 7.6% $490 5.3%

Cost of Goods Sold $1,085 17.7% $775 12.7%

Gross profit ($385) -12.5% ($285) -9.2%

Explanation:

a) Data:

Corp's comparative income statement:

(In millions) 2019 2018 2017

Revenue $9,910 $9,700 $9,210

Cost of Goods Sold 7,210 6,900 6,125

Gross profit $2,700 $2,800 $3,085

b) The horizontal analyses are performed by calculating the dollar differences between 2019 and 2018 revenue, cost of goods sold, and gross profit and those of the base year, 2017. The dollar differences are divided by the base year's figures to obtain the percentage changes. The results show that the gross profit reduced by 12.5% and 9.2% respectively for 2019 and 2018 financial years. This situation is despite the increases in the revenue both in dollar and percentage terms. However, the reason for this abysmal performance as measured by the gross profit can be attributed to the increasing cost of goods sold. This is a pointer to management to discover the root cause(s) in order to reduce the cost overrun.

You might be interested in

Identify the start and end events and the activities in the following narrative, and then draw the business process model using

Ganezh [65]

Please find the graph file in the attachment and find its complete solution.

A cup of coffee and drinking at Star Bucks is the process selected here, the customer, the cashier, and the barista are the actors in this scenario.
This process begins if the client enters the barista and commands ventilated coffee and Blueberry muffins.
The barista then registered in the cash register the order, the customer then drove to the window, filled the barista with a cafe called Venti cup of coffee, put the lid in it, and took the blue bear muffin out of the pastry, and put it in a bag.
Barista gave the customer the bag with coffee and pastry, in this, the customer had the option of paying the gift by cash, credit, or star bucks.
The gift card payment customer with the barista registered the payout and sent the card to a customer together with receiving it.

Learn more:

brainly.com/question/15185517

7 0

3 years ago

When each general partner is liable for the debts of the firm, no matter who was responsible for causing the debt, this is calle

jeka57 [31]

The type of liability that is illustrated in this scenario is known as unlimited liability.

<h3>What is unlimited liability?</h3>

It should be noted that in an unlimited liability company, the general partners are responsible for all the debts and liabilities that are incurred.

In this case, each general partner is liable for the debts of the firm, no matter who was responsible for causing the debt.

Learn more about liability on:

brainly.com/question/25012970

5 0

2 years ago

Starbucks traditionally has relied on a franchising model to expand internationally. But when it came to India, the coffee chain

PtichkaEL [24]

Answer:

joint venture

Explanation:

Traditionally, Starbucks has depended on a model of the franchise to expand globally. However, when it comes to India, another approach was taken by the coffee chain. It allied with Tata Group to creat a joint venture.

A joint venture (JV) is a business deal where 2 or more parties agree to pool their money for a particular task to be accomplished. This role can be a new project or any other operation of the business.

7 0

3 years ago

A family eats out at a restaurant and the total for their meals is $73.89. They also pay sales tax of 5.8% and leave a tip for t

Mashcka [7]

The answer is They left a 20% tip, so the service was probably above average. First step is to the amount of the sales tax. If 100% is $73.89, 5.8% will be x (tax): 100% : $73.89 = 5.8% : x. x = $73.89 * 5.8% : 100%. x = $4.28. Now, we have the price for meals, sales tax, and the total amount of money left, so we can calculate how much the tip is: $93.00 - $73.89 - $4.28 = $14.83. So, the tip is $14.83. Let represent it as percent. If $73.89 is 100%, $14.83 will be x. $73.89 : 100% = $14.83 : x. x = $14.83 * 100% : $73.89. x = 20%. So, they left a 20% tip, so the service was probably above average.

4 0

3 years ago

Read 2 more answers

Mount Snow Inc. operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season.

Ray Of Light [21]

Answer:

Mount Snow Inc.

a. Mount Snow would emphasize cost-plus pricing and not target costing. The target costing considered the investors expected returns on investment. Based on the target returns, customers were then charged any fee to meet the target profit, including all other costs. Now that Mount Snow is a price-taker, it cannot meet the target returns. It can only work with the cost-plus pricing strategy in order to rein in its costs.

b. As a price-taker, Mount Snow cannot charge more than $66. It should charge $66.

Explanation:

a) Data and Calculations:

Investors expected return on investment = 15%

Cost of investment = $115,000,000

Ski Season's Fixed costs = $43,500,000

No of skiers and snowboarders served = 900,000

Variable costs per guest = $10

Charges by other resorts in the vicinity = $66 per lift ticket

Total expected revenue $59,400,000 ($66 * 900,000)

Total variable costs = $9,000,000

Fixed costs = 43,500,000

Total costs = $52,500,000

Profit = $6,900,000

Target profit = $17,250,000 ($115,000,000 * 15%)

8 0

3 years ago

Corp. reported the following on its comparative income​ statement:

Corp. reported the following on its comparative income statement: