Use the following information to answer the questions that follow. A. Calculate the operating income percentage for each of the stores. Comment on how your analysis has changed for each store. B. Perform a vertical analysis for each store. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.
Use the following information to answer the questions that follow. A. Calculate the operating income percentage for each of the stores. Comment on how your analysis has changed for each store. B. Perform a vertical analysis for each store. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information? C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.
Use the following information to answer the questions that follow.
A. Calculate the operating income percentage for each of the stores. Comment on how your analysis has changed for each store.
B. Perform a vertical analysis for each store. Based on your analysis, what accounts would you want to investigate further? How might management utilize this information?
C. Which method of analysis (using a dollar value or percentage) is most relevant and/or useful? Explain.
Discuss the difference between the multiple-step and single-step forms of the income statement. Which form would the management of a large retail store most likely use? Why?
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TIPS:1. Get the Cost of Goods Sold(COGS) - compute for it, andyan yan. Compute for this first.2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income
Additional reference:SINGLE STEP APPROACH that your going to use
Please solve the following question. Using the accounts below, prepare a basic Income Statement.
All accounts will be used once. Use the example below to help with the solution
Cost of Goods Sold
General & Admininstrative Expense
Interest Expense
Net Sales Revenue
Net Sales
COGS
Selling Expense
Wages Expense
Gross Profit or Margin
Operating Expenses:
Selling Exp
General & Admininstrative Exp
Research & Development Exp
Insurance Exp
Here an example of this type of question that you can use to help with the solution
Income Statement
For Year Ending Dec. 31, 2022
Wages Exp
Depreciation, Amortization, & Depletion Exp
Total Operating Expenses
Operating Income
Other Income/Loss:
Interest Income
Gain on Sale of Asset
Loss on Sale of Asset
Interest Expense
Income before Taxes
Income Tax Expense
$
$
$
$
$
$
Net Income
22,000
15,000
2,200
100,000
$
10,000
5,000
$1,000,000
(450,000)
550,000
15,000
225,000
5,000
7,500
85,000
20,000
357,500
192,500
20,000
5,000
(5,000)
(10,000)
202,500
(142,500)…