Professional Documents
Culture Documents
Fall
Dr. Luvnica Verma
Classwork 1
Student Name:
CLOs Mapping
Questions Marks CLO Covered Grade Remarks
Questions 1 25 CLO2
Questions 2 25 CLO2
Total /50
Faculty Signature:___________________
Q1. Below is a comparative income statement for Elky Co.: [25 Marks]
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Elky Co.
Income Statement
For the years ended December 31
2017 2016
Sales $168,000 $151,000
Cost of goods sold 90,000 78,000
Gross profit 78,000 73,000
Operating expenses 32,000 30,000
Operating income 46,000 43,000
Interest expense 2,000 3,000
Income before taxes 44,000 40,000
Income taxes 11,000 10,000
Net income $33,000 $30,000
Required:
a.) Prepare a horizontal analysis for the company calculating the change
and percentage change of each line item from one year to the next.
(Round your answers to the nearest tenth of a percent, ie 0.13578
13.6%)
Solution:
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largest competitor, Hossain Inc. and notes that the company is over ten
times larger than his, so it is making the numbers difficult to compare. [25
Marks]
Below is condensed financial information from Hossain Inc. and Gill Inc.:
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Required:
a.) Prepare a vertical analysis for the companies calculating the relative
percentages of each item in the financial statements. (Round your
answers to the nearest tenth of a percent, ie 0.13578 13.6%)
b.) Comment on the common-sized income statements of the
companies (prepared in part a.).
c.)Comment on the common-sized balance sheets of the companies
(prepared in part a.).
Solution:
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