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Question 3.11 - Using the information provided in the problem on page 145, calculate/answer the following:

a. Sales growth percentage from 2014 to 2015.

b. Sales growth percentage from 2015 to 2016.

c. Cost of goods sold percentage for 2014.

d. Cost of goods sold percentage for 2015.

e. Cost of goods sold percentage for 2016.

f. Gross profit margin percentage for 2014.

g. Gross profit margin percentage for 2015.

h. Gross profit marginpercentage for 2016.

i. Operating profit margin percentage for 2014.

j. Operating profit margin percentage for 2015.

k. Operating profit margin percentage for 2016.

l. Average tax rate percentage for 2014.

m. Average tax rate percentage for 2015.

n. Average tax rate percentage for 2016.

o. Net profit margin percentage for 2014.

p. Net profit margin percentage for 2015.

q. Net profit margin percentage for 2016.

r - t. Answer the multiple choice questions using the information you calculated in parts a - k.

Question 3.12 - Prepare a multiple-step income statement for JackRabbit, Inc. from the single-step statement provided on Page 146 and answer the following questions using the multiple-step statement.

a. The gross profit. b. Operating profit. c. Other income (expense) total. d. Pre-tax income. Question 3.13 - Prepare common-size income statements for December 31, 2016, 2015, and 2014 using the income statements for Yarrick Company on Page 146 of your text and answer the following questions: a. Cost of goods sold percentage for 2014. b. Cost of goods sold percentage for 2015. c. Cost of goods sold percentage for 2016. d. Gross profit percentage for 2014. e. Gross profit percentage for 2015. f. Gross profit percentage for 2016. g. Selling, general and administrative expenses percentage for 2014. h. Selling, general and administrative expenses percentage for 2015. i. Selling, general and administrative expenses percentage for 2016. j. Research and development percentage for 2014. k. Research and development percentage for 2015. l. Research and development percentage for 2016. m. Operating profit percentage for 2014. n. Operating profit percentage for 2015. o. Operating profit percentage for 2016. p. Income tax expense (benefit) percentage for 2014. q. Income tax expense (benefit) percentage for 2015. r. Income tax expense (benefit) percentage for 2016. s. Net profit percentage for 2014. t. Net profit percentage for 2015. u. Net profit percentage for 2016.

v - x. Answer the multiple choice questions using the information from the common-size income statement information.

Question 3.14 - Calculate the gross profit margins for tickets and concessions for all three years (2014, 2015, 2016). Calculate an overall gross profit margin for LA Theatres for all three years using the information provided on page 147 and answer the following questions: a. Gross profit margin for tickets for 2014. b. Gross profit margin for tickets for 2015. c. Gross profit margin for tickets for 2016. d. Gross profit margin for concessions for 2014. e. Gross profit margin for concessions for 2015. f. Gross profit margin for concessions for 2016. g. Total gross profit margin for 2014. h. Total gross profit margin for 2015. i. Total gross profit margin for 2016.

j - l. Answer the multiple choice questions using the information you calculated in parts a - i above.

CHAPTER 3 recome Statement and States of Steeds Equity 147 72 1. LA Theatres Inc. has two distinct revenue sur ticket and The ing information from LA Theatres Inc. income statements for the pose the years available (in millions) 2016 2015 2014 Ticket revenue $1.731 $1,502 Concessions revenue $1,120 687 411 Total revenue $ 51551 Cost of goods sold-tickets $951 $ 854 $50 Cost of goods sold-concessions 70 69 8 Total cost of goods sold 5 $ 52 Gross profit 1740 5599 (a) Calculate gross profit margins for tickets and conceskins for all three years Calculate an overall gross profit margin for LA Theatres Inc. for all three years (b) Analyze the changes in gross profit margin for all three years 3.15. Writing Skills Problem Income statements are presented for the Ef Corporation for the yeasending Deo 2016, 2015, and 2014 Elf Corporation Income Statements for the Years Ending December 31, 2016, 2015 and 2014 (in millions) 2016 2015 2014 Sales 5700 SASO 5900 350 325 Cost of goods sold Gross profit 5 Operating expenses 100 Administrative 100 Advertising and marketing Operating profit Interest expense Earnings before tax 51 SO Tax expense (50% $65 5115 Net Income Required: Write a one paragraph analysis of Corporation's profit performance for the period. To the Student: The focus of this exercise on analyzing financial datather than ply describing the numbers and trends. Analysis involves breaking the information into pets for study, relating the plece, making comparison drawing conceden cause and effect. 116 Research Problem Locate the income statement of a company in each of the following industries phaeno for help in locating a company's Financial semenskega premon explaining the differences you find etwa i proda and when think the profit margins differ. Look up the FAS3 home page on the Internet at the followink www.teborg Find the list of technical projects are currently and cheese and the projects that will affect the income Dechenden the income statement may be attected TERE SKBRK 117, Intemet Problem 146 CHAPTER 3 Income Statement and Statement of Stockholders' Equity Moon Company Income Statements for the Years Ended becember 31, 2016, 2015 and 2014 2016 2015 2014 108.000 Net sales Cost of goods sold Gross profit Operating expenses Operating profit Income taxes Net income $220,000 $196,000 $150,000 169,000 147,000 $ 51,000 $ 49,000 $ 42.000 26,000 25,000 20.000 $ 25,000 $ 24,000 $22.000 7,800 7,500 7.000 $ 17200 $ 16,500 $ 15.000 3.12. Prepare a multiple-step income statement for Jackrabbit Inc. from the following single step statement Net sales Gain on sale of equipment Interest income $1,840.000 15.000 13,000 1.868.000 Costs and expenses Cost of goods sold Selling expenses General and administrative expenses Depreciation Equity losses Interest expense Income tax expense Net income 1,072,000 270,000 155,000 24,000 9,000 16,000 96,000 226.000 3.13. Income statements for Yarrick Company for the years ending December 31, 2016 2015 and 2014 are shown below. Prepare a common size income statement and analyze the profitability of the company. Yarrick Company Income Statements for the Years Ending December 31, 2016, 2015, and 2014 (in millions) 2016 2015 Net sales 5237 $155 Cost of goods sold 138 84 Gross profit $ 99 $71 Sales, general, and administrative expenses 42 31 Research and development 38 20 Operating profit Income tax expense (benefit) Net profit 2014 $134 72 $ 7 (531) (11) 20 CHAPTER 3 recome Statement and States of Steeds Equity 147 72 1. LA Theatres Inc. has two distinct revenue sur ticket and The ing information from LA Theatres Inc. income statements for the pose the years available (in millions) 2016 2015 2014 Ticket revenue $1.731 $1,502 Concessions revenue $1,120 687 411 Total revenue $ 51551 Cost of goods sold-tickets $951 $ 854 $50 Cost of goods sold-concessions 70 69 8 Total cost of goods sold 5 $ 52 Gross profit 1740 5599 (a) Calculate gross profit margins for tickets and conceskins for all three years Calculate an overall gross profit margin for LA Theatres Inc. for all three years (b) Analyze the changes in gross profit margin for all three years 3.15. Writing Skills Problem Income statements are presented for the Ef Corporation for the yeasending Deo 2016, 2015, and 2014 Elf Corporation Income Statements for the Years Ending December 31, 2016, 2015 and 2014 (in millions) 2016 2015 2014 Sales 5700 SASO 5900 350 325 Cost of goods sold Gross profit 5 Operating expenses 100 Administrative 100 Advertising and marketing Operating profit Interest expense Earnings before tax 51 SO Tax expense (50% $65 5115 Net Income Required: Write a one paragraph analysis of Corporation's profit performance for the period. To the Student: The focus of this exercise on analyzing financial datather than ply describing the numbers and trends. Analysis involves breaking the information into pets for study, relating the plece, making comparison drawing conceden cause and effect. 116 Research Problem Locate the income statement of a company in each of the following industries phaeno for help in locating a company's Financial semenskega premon explaining the differences you find etwa i proda and when think the profit margins differ. Look up the FAS3 home page on the Internet at the followink www.teborg Find the list of technical projects are currently and cheese and the projects that will affect the income Dechenden the income statement may be attected TERE SKBRK 117, Intemet Problem 146 CHAPTER 3 Income Statement and Statement of Stockholders' Equity Moon Company Income Statements for the Years Ended becember 31, 2016, 2015 and 2014 2016 2015 2014 108.000 Net sales Cost of goods sold Gross profit Operating expenses Operating profit Income taxes Net income $220,000 $196,000 $150,000 169,000 147,000 $ 51,000 $ 49,000 $ 42.000 26,000 25,000 20.000 $ 25,000 $ 24,000 $22.000 7,800 7,500 7.000 $ 17200 $ 16,500 $ 15.000 3.12. Prepare a multiple-step income statement for Jackrabbit Inc. from the following single step statement Net sales Gain on sale of equipment Interest income $1,840.000 15.000 13,000 1.868.000 Costs and expenses Cost of goods sold Selling expenses General and administrative expenses Depreciation Equity losses Interest expense Income tax expense Net income 1,072,000 270,000 155,000 24,000 9,000 16,000 96,000 226.000 3.13. Income statements for Yarrick Company for the years ending December 31, 2016 2015 and 2014 are shown below. Prepare a common size income statement and analyze the profitability of the company. Yarrick Company Income Statements for the Years Ending December 31, 2016, 2015, and 2014 (in millions) 2016 2015 Net sales 5237 $155 Cost of goods sold 138 84 Gross profit $ 99 $71 Sales, general, and administrative expenses 42 31 Research and development 38 20 Operating profit Income tax expense (benefit) Net profit 2014 $134 72 $ 7 (531) (11) 20

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