Prepare a comparative common-size income statement for Jubilee Corporation. To an investor, how does the current year compare with the prior year? Explain your reasoning. E (Click the icon to view the comparative income statement.) Data table Start by calculating the percentages. (Round the percentages to two decimal places, X.XX.) Jubilee Corporation Comparative Common-Size Income Statement A B For the Years Ended December 31 1 Jubilee Corporation Current Income Statement year Prior year 3 For the Years Ended December 31 Sales revenues 100.00 % 100.00 % 4 (amounts in thousands) Less: Cost of goods sold % % Current Gross profit % % year Prior year Less: Operating expenses 6 Sales revenues $ 494,208 $ 429,000 % % Operating income 7 Less: Cost of goods sold 172,640 160,000 Less: Interest expense 8 Gross profit 321,568 S 269,000 % % Income before income taxes % % 9 Less: Operating expenses 143,370 135,000 Less: Income tax expense % 10 Operating income $ 178,198 S 134,000 11 Less: Interest expense 7,500 6.000 Net income % % 12 Income before income taxes $ 170,698 S 128,000 23. 000 24.000
Prepare a comparative common-size income statement for Jubilee Corporation. To an investor, how does the current year compare with the prior year? Explain your reasoning. E (Click the icon to view the comparative income statement.) Data table Start by calculating the percentages. (Round the percentages to two decimal places, X.XX.) Jubilee Corporation Comparative Common-Size Income Statement A B For the Years Ended December 31 1 Jubilee Corporation Current Income Statement year Prior year 3 For the Years Ended December 31 Sales revenues 100.00 % 100.00 % 4 (amounts in thousands) Less: Cost of goods sold % % Current Gross profit % % year Prior year Less: Operating expenses 6 Sales revenues $ 494,208 $ 429,000 % % Operating income 7 Less: Cost of goods sold 172,640 160,000 Less: Interest expense 8 Gross profit 321,568 S 269,000 % % Income before income taxes % % 9 Less: Operating expenses 143,370 135,000 Less: Income tax expense % 10 Operating income $ 178,198 S 134,000 11 Less: Interest expense 7,500 6.000 Net income % % 12 Income before income taxes $ 170,698 S 128,000 23. 000 24.000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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