INCOME STATEMENT(Thousands of dollars)Net revenues- Cost of goods sold- Operating expenses- Research & development expenseOperating costs excluding depreciation- Depreciation and amortization expenseOperating income (EBIT)- Interest expenseTaxable income- TaxesNet income- Preferred dividendsNet income available to common shareholdersDividendsAddition to retained earningsThe gross margin for this fictional company is:O 14.7%O 9.2%O 18.2%O 60.3%$33.3%$7,000(2,781) account to learn about it.(1,809)(912)$ (5,502)(223)(1,275)(190)1,085(434)651$$$$GA GAIn this example, the firm pays half of its earnings as dividends to its stockholders and retains the other half. This is done for simplicity here, but realfirms weigh a multitude of factors in setting their dividends. This issue will be covered in your finance course.Check Your UnderstandingYr 2$(9)642Income StatementRoll your mouse over each income statement321321

Gross margin is one of profitability ratio being used in business. Gross margin means excess of…

INCOME STATEMENT (Thousands of dollars) Net revenues - Cost of goods sold - Operating expenses - Research & development expense Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders Dividends Addition to retained earnings The gross margin for this fictional company is: 14.7% 9.2% 18.2% 60.3% $ O 33.3% $ $ $ $ $ $ LA GA $ In this example, the firm pays half of its earnings as dividends to its stockholders and retains the other half. This is done for simplicity here, but firms weigh a multitude of factors in setting their dividends. This issue will be covered in your finance course. Check Your Understanding Yr 2 7,000 (2,781) account to learn about it. (1,809) (912) (5,502) (223) (1,275) (190) 1,085 (434) 651 (9) 642 Income Statement Roll your mouse over each income statement 321 321

INCOME STATEMENT (Thousands of dollars) Net revenues - Cost of goods sold - Operating expenses - Research & development expense Operating costs excluding depreciation - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income - Taxes Net income - Preferred dividends Net income available to common shareholders Dividends Addition to retained earnings The gross margin for this fictional company is: 14.7% 9.2% 18.2% 60.3% $ O 33.3% $ $ $ $ $ $ LA GA $ In this example, the firm pays half of its earnings as dividends to its stockholders and retains the other half. This is done for simplicity here, but firms weigh a multitude of factors in setting their dividends. This issue will be covered in your finance course. Check Your Understanding Yr 2 7,000 (2,781) account to learn about it. (1,809) (912) (5,502) (223) (1,275) (190) 1,085 (434) 651 (9) 642 Income Statement Roll your mouse over each income statement 321 321

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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Revenue Cost of Sales Net Income attributed to Shareholders of PepsiCo or Coca-Cola Inventory Total Current Assets Total Assets Total Current Liabilities Total Liabilities Total Shareholders' Equity attributed to Shareholders of Pepsico or Coca-Cola Total Liabilities+Total Equity Total Equity (attributed to Shareholders of Parent and Non-controlling Interests) Gross Margin (%) Return on Revenue (%) Return on Assets (%) Return on Equity (%) Inventory Turnover Ratio Total Asset Turnover Ratio Debt to Equity Ratio Current Ratio 64,661 67,161 70,372 79,372 29,381 30,132 31,797 37,075 12,515 7,314 7,618 3,128 3,338 4,347 17,645 23,001 21,783 78,547 92,918 92,377 83,216 23,372 26,220 28,782 20,461 63,679 79,366 63,046 76,226 64,158 14,518 14,786 77,648 78,547 14,602 14,868 13,552 21,893 77,648 22,138 54.56% 7,120 4,172 34,300 37,266 14,619 13,067 8,920 3,379 20,411 86,381 26,973 55.13% 54.82% 53.29% 6,434 3,071 24,930 16,151 16,981 13,552 92,918 92,377 83,216 16,151 19,058 65,283 18,981…
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