Following are selected income statement data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a common‑size income statement. To do this, express each income statement amount as a percent of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Income Statements Tesco Carrefour Group For Fiscal Year Ended February 24, 2019 December 31, 2018 (£ millions) (€ millions) Sales £57,520 Answer €70,125 Answer Cost of goods sold 53,790 Answer 54,765 Answer Gross profit 3,730 Answer 15,360 Answer Total expenses 2,542 Answer 15,670 Answer Net income £1,188 Answer €(310) Answer b. Following are selected balance sheet data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a common‑size balance sheet. To do this, express each balance sheet amount as a percent of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Tesco Carrefour Group February 24, 2019 December 31, 2018 Balance Sheet (£ millions) (€ millions) Current assets £11,401 Answer €16,803 Answer Long-term assets 32,741 Answer 25,837 Answer Total assets 44,142 Answer 42,640 Answer Current liabilities 18,612 Answer 20,846 Answer Long-term liabilities 12,180 Answer 11,637 Answer Total liabilities 30,792 Answer 32,483 Answer Stockholders’ equity 13,351 Answer 10,157 Answer Total liabilities and equity £44,143 Answer €42,640 Answer

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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Compare Income Statements and Balance Sheets of Competitors
a. Following are selected income statement data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a common‑size income statement. To do this, express each income statement amount as a percent of sales.
Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%).

Income Statements	Tesco		Carrefour Group
For Fiscal Year Ended	February 24, 2019		December 31, 2018
	(£ millions)		(€ millions)
Sales	£57,520	Answer		€70,125	Answer
Cost of goods sold	53,790	Answer		54,765	Answer
Gross profit	3,730	Answer		15,360	Answer
Total expenses	2,542	Answer		15,670	Answer
Net income	£1,188	Answer		€(310)	Answer

b. Following are selected balance sheet data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a common‑size balance sheet. To do this, express each balance sheet amount as a percent of total assets.
Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%).

	Tesco		Carrefour Group
	February 24, 2019		December 31, 2018
Balance Sheet	(£ millions)		(€ millions)
Current assets	£11,401	Answer		€16,803	Answer
Long-term assets	32,741	Answer		25,837	Answer
Total assets	44,142	Answer		42,640	Answer
Current liabilities	18,612	Answer		20,846	Answer
Long-term liabilities	12,180	Answer		11,637	Answer
Total liabilities	30,792	Answer		32,483	Answer
Stockholders’ equity	13,351	Answer		10,157	Answer
Total liabilities and equity	£44,143	Answer		€42,640	Answer

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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