Prepare a comparative income statement for fiscal years 2005 and 2006 in vertica
ID: 2359550 • Letter: P
Question
Prepare a comparative income statement for fiscal years 2005 and 2006 in vertical form, stating each item as a percent of revenuesExpenses and other:
Direct expense of events 95,990 ___ % 97,042___ %
NASCAR purse and sanction fees 105,826 __ % 96,306___ %
Other direct expenses 113,141 ___ % 102,535__ %
General and administrative 78,070 ____ % 73,281 __ %
Total expenses and other 393,027 ___ % $$369,164 __ %
Income from continuing operations 174,338___ % $$174,904___ %
2. a. Determine for each year the inventory turnover. Round to one decimal place.
The following data were extracted from the income statement of Brecca Systems Inc.:
current year preceding year
SALES $ 1139600 $ 1192320
BEGAINING OF INVENTORIES $ 80000 $ 64000
COST OF GOOD SOLD $ 569800 $ 662400
ENDING INVETORIES $74000 $ 80000
Current Year: _______
Preceding Year: _________
Determine the number of days' sales in inventory. Round to one decimal place.
Current Year: days _________
Preceding Year: days ________
Explanation / Answer
Cost of Goods Sold / Average Inventory Current Year = 569,800 / [(80,000 + 74,000) / 2] = 7.4 times Preceding Year = 662,400 / [(64,000 + 80,000) / 2] = 9.2 times