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McCormick Corp. reported the following on its comparative income​ statement:
Mariner Corp.
Income Statement - (Partial)
Years Ended December 31, 2019 and 2018
Increase (Decrease)
2019 2018
(Amounts in
millions) 2019 2018 2017 Amount Percentage Amount Percentage
Revenues 9,575 $9,300 $8,975
Cost of
Goods Sold 7,240 6,800 6,100
Gross Profit $2,335 $2,500 $2,875
Prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025. Begin by calculating the gross profit for each​ year, then prepare a horizontal analysis of revenues and gross profit—both in dollar amounts and in percentages—for 2025.

Sagot :

anthougo

Answer:

McCormick Corp.

Horizontal Analysis of Revenues and Gross Profit:

Income Statement - (Partial)

Years Ended December 31, 2019 and 2018

                                                                      Increase (Decrease)

                                                                     2019                  2018

(Amounts in  millions)

                         2019  2018      2017       Amount   %         Amount   %

Revenues       9,575 $9,300 $8,975     $275     2.96%   $325   3.62%

Cost of

Goods Sold    7,240    6,800    6,100    $440     6.47%    $700   11.5%

Gross Profit $2,335 $2,500 $2,875    -$165    -6.6%     -$375   -13%

Explanation:

a) Data and Calculations:

Income Statement - (Partial)

Years Ended December 31, 2019 and 2018

                                                                      Increase (Decrease)

                                                                     2019                  2018

(Amounts in  millions)

                         2019  2018      2017       Amount   %         Amount   %

Revenues       9,575 $9,300 $8,975  

Cost of

Goods Sold    7,240    6,800    6,100  

Gross Profit $2,335 $2,500 $2,875

Workings:

Revenue:

2019 = $275/$9,300 * 100 = 2.96%

2018 = $324/$8,975 * 100 = 3.62%

Cost of goods sold:

2019 = $440/$6,800 * 100 = 6.47%

2018 = $700/$6,100 * 100 = 11.5%

Gross profit:

2019 = $(165)/$2,500 * 100 = -.6.6%

2018 = $(375)/$2,875 * 100 = -13%

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