Sales revenue Base year multiplier Cost of goods sold Base year multiplier Gross profit Base year multiplier SG&A Expenses Base year multiplier Other operating income/expenses Base year multiplier Operating expenses Base year multiplier Operating income Base year multiplier Non-operating income/expenses Base year multiplier Pretax income Base year multiplier Income taxes Base year multiplier Net income Base year multiplier 2014 27,441.30 100.00 16,985.60 100.00 10,455.70 100.00 2,487.90 100.00 18.60 100.00 2,506.50 100.00 7,949.20 100.00 (577.20) 100.00 7,372.00 100.00 2,614.20 100.00 4,757.80 100.00 2015 25,413.00 92.61 15,623.80 91.98 9,789.20 93.63 2,434.30 97.85 209.40 1,125.81 2,643.70 105.47 7,145.50 89.89 (589.80) 102.18 6,555.70 88.93 2,026.40 77.52 4,529.30 95.20 2016 24,621.90 89.73 14,417.20 84.88 2017 22,820.40 83.16 12,199.60 71.82 10,204.70 10,620.80 97.60 101.58 2,384.50 2,231.30 95.84 89.69 75.70 (1,163.20) 406.99 (6,253.76) 2,460.20 1,068.10 98.15 42.61 7,744.50 9,552.70 97.42 120.17 (878.50) (979.20) 152.20 169.65 6,866.00 8,573.50 93.14 116.30 2,179.50 83.37 4,686.50 98.50 3,381.20 129.34 5,192.30 109.13 2018 21,257.90 77.47 10,425.30 61.38 10,832.60 103.60 2,200.20 88.44 (190.20) (1,022.58) 2,010.00 80.19 8,822.60 110.99 (1,006.50) 174.38 7,816.10 106.02 1,891.80 72.37 5,924.30 124.52

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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discuss in details the result of the Company's Horizontal and Vertical Analysis from 2014-2018

Sales revenue
Base year multiplier
Cost of goods sold
Base year multiplier
Gross profit
Base year multiplier
SG&A Expenses
Base year multiplier
Other operating income/expenses
Base year multiplier
Operating expenses
Base year multiplier
Operating income
Base year multiplier
Non-operating income/expenses
Base year multiplier
Pretax income
Base year multiplier
Income taxes
Base year multiplier
Net income
Base year multiplier
2014
27,441.30
100.00
16,985.60
100.00
10,455.70
100.00
2,487.90
100.00
18.60
100.00
2,506.50
100.00
7,949.20
100.00
(577.20)
100.00
7,372.00
100.00
2,614.20
100.00
4,757.80
100.00
2015
2016
25,413.00 24,621.90
92.61
89.73
15,623.80
14,417.20
91.98
84.88
9,789.20
10,204.70
10,620.80
93.63
97.60
101.58
2,434.30
2,384.50
2,231.30
97.85
95.84
89.69
209.40
75.70
(1,163.20)
1,125.81
406.99 (6,253.76)
2,643.70
2,460.20
1,068.10
98.15
42.61
7,744.50
9,552.70
97.42
120.17
(878.50)
(979.20)
152.20
169.65
105.47
7,145.50
89.89
(589.80)
102.18
6,555.70
88.93
2,026.40
77.52
4,529.30
95.20
6,866.00
93.14
2,179.50
83.37
4,686.50
98.50
2017
22,820.40
83.16
12,199.60
71.82
8,573.50
116.30
3,381.20
129.34
5,192.30
109.13
2018
21,257.90
77.47
10,425.30
61.38
10,832.60
103.60
2,200.20
88.44
(190.20)
(1,022.58)
2,010.00
80.19
8,822.60
110.99
(1,006.50)
174.38
7,816.10
106.02
1,891.80
72.37
5,924.30
124.52
Transcribed Image Text:Sales revenue Base year multiplier Cost of goods sold Base year multiplier Gross profit Base year multiplier SG&A Expenses Base year multiplier Other operating income/expenses Base year multiplier Operating expenses Base year multiplier Operating income Base year multiplier Non-operating income/expenses Base year multiplier Pretax income Base year multiplier Income taxes Base year multiplier Net income Base year multiplier 2014 27,441.30 100.00 16,985.60 100.00 10,455.70 100.00 2,487.90 100.00 18.60 100.00 2,506.50 100.00 7,949.20 100.00 (577.20) 100.00 7,372.00 100.00 2,614.20 100.00 4,757.80 100.00 2015 2016 25,413.00 24,621.90 92.61 89.73 15,623.80 14,417.20 91.98 84.88 9,789.20 10,204.70 10,620.80 93.63 97.60 101.58 2,434.30 2,384.50 2,231.30 97.85 95.84 89.69 209.40 75.70 (1,163.20) 1,125.81 406.99 (6,253.76) 2,643.70 2,460.20 1,068.10 98.15 42.61 7,744.50 9,552.70 97.42 120.17 (878.50) (979.20) 152.20 169.65 105.47 7,145.50 89.89 (589.80) 102.18 6,555.70 88.93 2,026.40 77.52 4,529.30 95.20 6,866.00 93.14 2,179.50 83.37 4,686.50 98.50 2017 22,820.40 83.16 12,199.60 71.82 8,573.50 116.30 3,381.20 129.34 5,192.30 109.13 2018 21,257.90 77.47 10,425.30 61.38 10,832.60 103.60 2,200.20 88.44 (190.20) (1,022.58) 2,010.00 80.19 8,822.60 110.99 (1,006.50) 174.38 7,816.10 106.02 1,891.80 72.37 5,924.30 124.52
Assets
Total current assets
Total long term assets
Total assets
Liabilities & Equity
Liabilities:
Total current liabilities
Total long term liabilities
Total liabilities
Stockholders' equity:
Total stockholders' equity
Total liabilities & equity
2014
4,185.50 12.23
30,041.90
34,227.40 100.00
25.42
4,848.60
9,643.00
87.77 28,295.70 74.58 26,175.30
31,023.90
37,938.70
100.00
2,747.90 8.03
18,626.10 54.42
21,374.00 62.45
2015
12,853.40 37.55
34,227.40 100.00
2,950.40
27,900.40
30,850.80 81.32
2016
7,087.90 18.68
37,938.70 100.00
15.63
84.37
100.00
7.78 3,468.30 11.18
73.54 29,759.90 95.93
33,228.20 107.11
(2,204.30) (7.11)
31,023.90 100.00
2017
5,327.20 15.76
28,476.50 84.24
33,803.70 100.00
2,890.60 8.55
34,181.10 101.12
37,071.70 109.67
(3,268.00) (9.67)
33,803.70 100.00
2018
4,053.20
28,758.00
32,811.20
12.35
87.65
100.00
2,973.50
9.06
36,096.10 110.01
39,069.60 119.07
(6,258.40) (19.07)
32,811.20 100.00
Transcribed Image Text:Assets Total current assets Total long term assets Total assets Liabilities & Equity Liabilities: Total current liabilities Total long term liabilities Total liabilities Stockholders' equity: Total stockholders' equity Total liabilities & equity 2014 4,185.50 12.23 30,041.90 34,227.40 100.00 25.42 4,848.60 9,643.00 87.77 28,295.70 74.58 26,175.30 31,023.90 37,938.70 100.00 2,747.90 8.03 18,626.10 54.42 21,374.00 62.45 2015 12,853.40 37.55 34,227.40 100.00 2,950.40 27,900.40 30,850.80 81.32 2016 7,087.90 18.68 37,938.70 100.00 15.63 84.37 100.00 7.78 3,468.30 11.18 73.54 29,759.90 95.93 33,228.20 107.11 (2,204.30) (7.11) 31,023.90 100.00 2017 5,327.20 15.76 28,476.50 84.24 33,803.70 100.00 2,890.60 8.55 34,181.10 101.12 37,071.70 109.67 (3,268.00) (9.67) 33,803.70 100.00 2018 4,053.20 28,758.00 32,811.20 12.35 87.65 100.00 2,973.50 9.06 36,096.10 110.01 39,069.60 119.07 (6,258.40) (19.07) 32,811.20 100.00
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