Answer: Cost of Goods sold
Explanation:
Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.
Current Year Prior Year
Sales 100% 100%
Cost of Goods sold 75.7% 46.5%
Gross Profit 24.3% 53.5%
Operating expenses 17.3% 35%
Net Income 7.0% 18.5%
<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>
<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>
<span>Because the ego is the rational part of the personality, it sometimes plays referee between the wishes of the Id and the Superego. The ego or your ego is referred to be your conscious mentality and it is also your perception of your own self.</span>
The weighted average cost of capital (WACC) for ABC Limited is 12.63%
The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.
It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.
By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.
WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)
weight of equity=equity finance/total finance
cost of equity=15%
weight of mezzanine finance=mezzanine finance/total finance
cost of mezzanine finance=9.5%
weight of debt of finance=debt finance/total finance
total finance=$5m+$2m+$1m
total finance=$8m
WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)
WACC=12.63%
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