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Income Statement For the Years 2016 through 2014 Balance Sheet Income Statement

ID: 2405516 • Letter: I

Question

Income Statement

For the Years 2016 through 2014

Balance Sheet

Income Statement

BA233 - Accounting for Managers M4 Step 6 - Learning Activity Prepare a vertical analysis of East Valley Computer Company's income statements and balance sheets for 2016 through 2014. Prepare the vertical analysis in the area below each set of statements. East Valley Computer Company Income Statements For the Years 2016 through 2014 2016 2015 2014 Sales $      24,977 $      21,348 $      19,199 Cost of goods sold          15,266          14,985          14,026 Gross profit             9,711             6,363             5,173 Operating expenses Wages             4,300             4,300             4,300 Rent             1,400             1,000                600 Utilities                560                670                780 Income before taxes             3,451                393              (507) Income taxes             1,345                421                  26 Net income $        2,106 $            (28) $          (533) East Valley Computer Company Vertical Analysis of Income Statements

For the Years 2016 through 2014

Balance Sheet

BA233 - Accounting for Managers M4 Step 6 - Learning Activity East Valley Computer Company Balance Sheets As of December 31 for the Years 2016 through 2014 2016 2015 2014 Assets Current assets Cash $            498 $        1,396 $        2,934 Accounts receivable             2,677             1,844                946 Merchandise inventory             5,649             4,087             3,492 Total current assets             8,824             7,327             7,372 Plant & equipment Van             7,355             6,843             6,988 Total assets $      16,179 $      14,170 $      14,360 Liabilities Current liabilities Accounts payable $        2,983 $        1,947 $            831 Long-term liabilities Notes payable             6,988             7,121             7,399 Total liabilities             9,971             9,068             8,230 Stockholders' equity Common stock             3,500             3,500             3,500 Retained earnings             2,708             1,602             2,630 Total stockholders' equity             6,208             5,102             6,130 Total liabilities and stockholders' equity $      16,179 $      14,170 $      14,360 East Valley Computer Company Vertical Analysis of Balance Sheets As of December 31 for the Years 2016 through 2014

Explanation / Answer

vertical analasyis of income statement of East Valley Computer Company

vertical analasyis of balance sheet of East Valley Computer Company


2016$ %net sales 2015$ %net sales 2014$ %net sales Sales 24977 100% 21348 100% 19199 100% Cost of goods sold 15266 61.12% 14985 70.19% 14026 73.06% gross profit 9711 38.88% 6363 29.81% 5173 26.94% operating exp    wages 4300 17.22% 4300 20.14% 4300 22.4%    rent 1400 5.61% 1000 4.68% 600 3.13% utilities 560 2.24% 670 3.14% 780 4.06% income before tax 3451 13.82% 393 1.84% (507) (2.64%) income taxes 1345 5.38% 421 1.97% 26 0.14% net income 2106 8.43% (28) (0.13%) (533) (2.78%)