Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 1, Problem 1.9E
Classification of Financial Statement Items
Regal Entertainment Group operates the largest chain of movie theaters in the U.S. Classify each of the following items found in the company’s financial statements included in the Form 10-K for the year ended January 1, 2015, according to (1) whether it belongs on the income statement (IS) or
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Selected comparative financial Statements of Kordin
Company follow.
Comparative
Income Statements
For Years Ended December 31
Sales
Cost of goods sold
Gross profit
Selling expenses
KORBIN COMPANY
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
Assets
Current assets
Long-term investments.
Plant assets, net
Total assets
Liabilities and Equity
Current liabilities
KORBIN COMPANY
Comparative Balance Sheets
Assets
Current assets
Long-term investments
Plant assets, net
Total assets
2021
2020
2019
$548,688 $ 420,340 $ 291,700
330, 310
263,974
186,688
156,366
105,012
58,007
38,504
36,990
24,211
94,997
61,369
12,581
$ 48,788
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
Liabilities and Equity
Current liabilities
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
218,378
77,914
49,382
127,296
91,082
16,941
$74,141
December 31
2021
$ 62,574
0
114,438
$177,012
$ 25,844
65,000
8,125
78,043…
Making Business Decisions: Analyzing Wal-Mart's Gross Profit Ratio
You are considering an investment in the common stock of Wal-Mart. The following information is from the consolidated statements of income of Wal-Mart Stores, Inc. and Subsidiaries for the years ended January 31, 2016, and 2015 and the consolidated statements of operations for its competitor Target Corporation for the years ended January 30, 2016, and January 31, 2015 (included in the companies’ Form 10-Ks, amounts in millions of dollars):
Wal-Mart
Target
(in millions)
Year EndedJanuary 31, 2016
Year EndedJanuary 31, 2015
Year EndedJanuary 30, 2016
Year EndedJanuary 31, 2015
Sales*
$478,614
$482,229
$73,785
$72,618
Cost of sales
360,984
365,086
51,997
51,278
*Described as net sales by Wal-Mart.
Required:
1. Calculate the gross profit ratios for Wal-Mart and Target for 2016 and 2015. Enter the amounts as a percent, rounded to one decimal place.
Wal-Mart's 2016 gross…
Selected comparative financial statements of Korbin
Company follow.
KORBIN COMPANY
Comparative
Income Statements
For Years Ended December 31
Sales.
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
Assets
Current assets
Long-term investments.
Plant assets, net
Total assets
KORBIN COMPANY
Comparative Balance Sheets
Liabilities and Equity
Current liabilities.
2021
2020
2019
$ 483,981 $ 370,769 $ 257,300
291,357
234,326
164,672
192,624
136,443
92,628
68,725
51,166
43,558
32,628
112,283
83,794
80,341
52,649
14,943
10,793
$ 65,398 $ 41,856
Sales
Cost of goods sold
Gross profit
Selling expenses
Administrative expenses
Total expenses
Income before taxes
Income tax expense
Net income
Common stock
Other paid-in capital
Retained earnings
Total liabilities and equity
December 31
2021
S
%
$ 57,843
0
KORBIN COMPANY
Common-Size Comparative Income Statements
For Years Ended December 31, 2021, 2020, and 2019
2021…
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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