Common Size Analysis of Comparative Income Statements
Not what you're looking for?
Required:
Prepare common size statements showing the percent of each item to net sales for both year 8 and year 9. Include a column reporting the percentage increase or decrease for year 9 relative to year 8 (round numbers to the tenth of 1%).
Interpret the trend shown in your percentage calculations. What areas identified from this analysis should be a matter of managerial concern.
Attached are the answers. Please check that this was done correctly. I am fairly certain that I did the vertical analysis correctly. However, I am concerned about the column for the increases or decreases. Please advise. My text does not provide an example. Thank you.
Purchase this Solution
Solution Summary
The solution explains how to carry out a common size analysis. The trends shown in percentage calculations are determined.
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.