Xacc/280 Week 1 Accounting Assignment

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Accounting Assignment 2013 By : David Step One ….. all calculations are in $000’s $000’s | 2012 | 2011 | 2010 | 2009 | REVENUE | 419,812 | 413,131 | 373,144 | 344,150 | SALES | 418,981 | 411,652 | 372,120 | 343,078 | GROSS PROFIT | 418,981-175,843 = 243,138 | 411,652-171,256 = 240,396 | 372,120-164,789 = 207,331 | 343,078-145,275 = 197,803 | EBIT* | 19,491 | 21,532 | 16,667 | 21,164 | NET PROFIT | 16,103 | 18,218 | 12,331 | 15,649 | -TREND ANALYSIS- | | | | | SALES | 418,981/343,078 *100 = 122.1 | 413,131/343,078 *100 = 120.4 | 373,144/343,078 *100 = 108.8 | 100 | EBIT | 19,491/21,164 *100 = 92.1 | 21,532/21,164 *100 = 101.7 | 16,667/21,164 *100 = 78.8 | 100 | PROFIT | 16,103/15,649 *100 = 102.9 | 18,218/15,649…show more content…
This suggest that for every $1 that the company earns in Sales, they paid 23.1 cents for their employee. The fact that Country Road has decreased the percentage means that they became more efficient in paying their employee over the years. (c) Judging from the Vertical Analysis, Country Road might have been opening new stores , thus increasing Occupancy Expense. By doing this they have to save more money, cutting cost which led to decrease in Employment Expense, cutting their employee’s wages. ?? Step Six The greater decline of Profit Margin compared to Gross Profit Margin may have been caused of the increasing expenses over the years. Based on the analysis, Expenses has been increasing, thus reducing Profit. Another important aspect may have been because the Income Tax has been increasing, reducing the profit margin even more. Since Profit Margin are calculated using EBIT, Income Tax plays a great role to affecting the results. Step Seven….figures are in $000’s TOTAL | 2012 | 2011 | 2010 | 2009 | Current Asset | 55,838 | 64,438 | 53,315 | 70,140 | Non-Current Asset | 69,936 | 75,013 | 75,879 | 71,528 | Asset | 119,774 | 139,451 | 129,194 | 141,668
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