71 selected information about the staccato company for the current year and prior ye 4307896

71 selected information about the staccato company for the current year and prior ye 4307896

71) Selected information about The Staccato Company for the current year and prior year is given below.

AccountCurrentPrior

Net sales revenue$648,000$595,000

Cost of goods sold$401,760$425,000

Gross profit$246,240$170,000

Selling/general expenses $142,560$93,500

Net income before tax $103,680$76,500

Income tax$32,400$22,800

Net income$71,280$53,700

The current year's income tax percentage (as would be found on a vertical analysis of the income statement for the current year) is

A) 142.11%.

B) 42.11%.

C) 5.00%.

D) 5.45%.

72) Selected information about The Staccato Company for the current year and prior year is given below.

AccountCurrentPrior

Net sales revenue$648,000$595,000

Cost of goods sold$401,760$425,000

Gross profit$246,240$170,000

Selling/general expenses $142,560$93,500

Net income before tax $103,680$76,500

Income tax$32,400$22,800

Net income$71,280$53,700

The current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year) is

A) 11.00%.

B) 11.98%.

C) 32.74%.

D) 132.74%.

73) Use the following information about The Conley Company to do a vertical analysis of the income statement for the current year. Fill in the missing components in the table.

AccountCurrentPriorPercent

Net sales revenue$350,000$312,000

Cost of goods sold$192,500$215,000

Gross profit$157,500 $97,000

Selling/general expenses $84,000$36,500

Net income before tax $73,500$60,500

Income tax$14,000$6,400

Net income$59,500$54,100

74) The data provided by the horizontal or vertical analysis of the financial statements can be used in benchmarking.

75) A common size statement reports only percentages.

76) The common size statement percentages are different from those that appear in horizontal analysis.

77) Common size statements allow the comparison of two or more companies with different amounts of net sales and net assets.

78) Benchmarking is a valid analysis measure of performance.

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