Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 45

The following information was developed from the financial statements of Free Time, Inc.t the beginning of 2015, the company's former supplier went bankrupt, and the company began buying merchandise from another supplier.

Instructions
a.ompute the net sales for each year.
b.ompute the cost of goods sold in dollars and as a percentage of net sales for each year.
c.ompute operating expenses in dollars and as a percentage of net sales for each year.Income taxes expense is not an operating expense.)
d.repare a condensed comparative income statement for 2014 and 2015.nclude the following items: net sales, cost of goods sold, gross profit, operating expenses, income before income tax, income tax expense, and net income.mit earnings per share statistics.
e.dentify the significant favorable and unfavorable trends in the performance of Free Time, Inc.omment on any unusual changes.