毕晓方改编+《财务会计》功的课后习题答案17章习题答案.docVIP

----------专业最好文档，专业为你服务，急你所急，供你所需------------- 文档下载最佳的地方 ----------专业最好文档，专业为你服务，急你所急，供你所需------------- 文档下载最佳的地方 EXERCISES Ex. 17–1 a. HOME-MATE APPLIANCE CO. Comparative Income Statement For the Years Ended December 31, 2006 and 2005 2006 2005 Amount Percent Amount Percent Sales $500,000 100.0% $450,000 100.0% Cost of goods sold 275,000 55.0 234,000 52.0 Gross profit $225,000 45.0% $216,000 48.0% Selling expenses $ 90,000 18.0% $ 94,500 21.0% Administrative expenses 60,000 12.0 63,000 14.0 Total operating expenses $150,000 30.0% $157,500 35.0% Income from operations $ 75,000 15.0% $ 58,500 13.0% Income tax expense 25,000 5.0 22,500 5.0 Net income $ 50,000 10.0% $ 36,000 8.0% b. The vertical analysis indicates that the cost of goods sold as a percent of sales increased by 3 percentage points (55% – 52%) between 2005 and 2006. However, the selling expenses and administrative expenses improved by 5 percentage points. Thus, the net income as a percent of sales improved by 2 percentage points. Ex. 17–2 a. HORIZON PUBLISHING COMPANY Common-Size Income Statement For the Year Ended December 31, 20— Horizon Publishing Publishing Industry Company Average Amount Percent Sales $ 1,414,000 101.0% 101.0% Sales returns and allowances 14,000 1.0 1.0 Net sales $ 1,400,000 100.0% 100.0% Cost of goods sold 504,000 36.0 40.0 Gross profit $ 896,000 64.0% 60.0% Selling expenses $ 574,000 41.0% 39.0% Administrative expenses 154,000 11.0 10.5 Total operating expenses $ 728,000 52.0% 49.5% Operating income $ 168,000 12.0% 10.5% Other income 16,800 1.2 1.2 $ 184,800 13.2% 11.7% Other expense 23,800 1.7 1.7 Income before income tax $ 161,000 11.5% 10.0% Income tax expense 56,000 4.0 4.0 Net income $ 105,000 7.5% 6.0% b. The cost of goods sold is 4 percentage points lower than the industry average, but the selling expenses and administrative expenses are 2.5 percentage points higher th