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Alphaville Company Income Statement Analysis

The common size income statement shows that in 2017, Alphaville Company had sales of ₱800,000 which was 100% of total sales. Cost of sales were ₱510,000 or 64% of total sales. This resulted in a net income of ₱119,000 or 15% of total sales, representing a decrease in return on sales from 19% in 2016.

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Nicole Athena Cruz
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15 views2 pages

Alphaville Company Income Statement Analysis

The common size income statement shows that in 2017, Alphaville Company had sales of ₱800,000 which was 100% of total sales. Cost of sales were ₱510,000 or 64% of total sales. This resulted in a net income of ₱119,000 or 15% of total sales, representing a decrease in return on sales from 19% in 2016.

Uploaded by

Nicole Athena Cruz
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Alphaville Company

Common Size Income Statement


For the years ended 2016 and 2017

Income Statement Common size


2017
Sales ₱ 800,000.00 1.00
Cost of Sales ₱ (510,000.00) 0.64
Gross Profit ₱ 290,000.00 0.36
Selling and General Expenses ₱ (80,000.00) 0.10
Operating Income ₱ 210,000.00 0.26
Interest Expense ₱ (40,000.00) 0.05
Income before taxes ₱ 170,000.00 0.21
Income Taxes ₱ (51,000.00) 0.06
Net Income ₱ 119,000.00 0.15

Return on Sales 15%

Req 2 Cost of Sales significantly affected the decrease in return on sales for 2017.
lphaville Company
n Size Income Statement
ears ended 2016 and 2017

Income Statement Common Size


2016
₱ 450,000.00 1.00
₱ (240,000.00) 53%
₱ 210,000.00 0.47
₱ (60,000.00) 0.13
₱ 150,000.00 0.33
₱ (30,000.00) 0.07
₱ 120,000.00 0.50
₱ (36,000.00) 0.08
₱ 84,000.00 0.19

19%

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