University Of Illinois At Urbana-Champaign Operations And Supply Chain Management Assignment Help - (Ratios Analysis)

Question - 1.
2. Problem 1
Required:Express each income statement component as a percentage of sales, and
comment on the trends in each line from 2012 to 2013.
2013 % Sales 2012 % Sales Comments
Sales $ 1,000,000 $ 1,200,000
Cost of goods sold $ 450,000 $ 600,000
Gross margin $ 550,000 $ 600,000
Operating expenses $ 600,000 $ 450,000
Net income $(50,000) $ 150,000
Problem 2
Required:Compute (1) accounts receivable turnover for 2013, (2) the inventory turnover for
2013, and (3) the net margin for 2012.
Balance sheet items 2013 2012
Accounts receivable $ 380,000.00 $ 376,000.00
Allowance for doubtful accounts $ (20,000.00) $ (16,000.00)
Net accounts receivable $ 360,000.00 $ 360,000.00 ...Read More
Inventory $ 480,000.00 $ 440,000.00
Income statement items
Sales $ 3,400,000.00 $ 3,080,000.00
Cost of goods sold $ 1,600,000.00 $ 1,440,000.00
Operating expenses $ 780,000.00 $ 680,000.00
3. ...Read Less

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