Interest and taxes, Taxation

Assignment Help:

Revenue: Revenue is how much a company receives in income when making sales. Revenue increased from 2011 to 2012 by 14.5%. This is great considering poor economic conditions.

Gross Profit: Gross profit is how much net profit a company makes after subtracting the cost of goods from revenue. The gross profit is a large amount of the sales revenue and stays consistent throughout the last three years (41%). This means Coach is making more of a profit from sales rather than to make the product itself.

SG & A[1] Expenses: SG&A Expenses are made up of direct and indirect expenses. SG&A expenses seem to be a large part of the sales revenue, which can be problematic; however, it remains stable throughout the last three years. The stability means that Coach's management is keeping tight control over how much SG&A expenses are used.
Operating Income (EBIT[2]): Is pretty stable at 31-32% over the three years. This helps to understand whether the company is operating efficiently, which Coach seems to be based on their stable numbers.

Operating Income (EBIT[3]): Increased a percentage each year going from 20%-22% throughout the three years. It seems to be relatively unstable based upon the trend.

In the end, based on the income statement information, Coach has been thriving even with the poor economic conditions.

[1] SG&A = Selling, General, and Administrative Expenses.

[2] EBIT = Earnings Before Interest and Taxes.

[3] EBIT = Earnings Before Interest and Taxes.


Related Discussions:- Interest and taxes

Difficult problem, Ben Grimm is a 40% partner in We Four, LLC a super-heroi...

Ben Grimm is a 40% partner in We Four, LLC a super-heroing organization. (He does most of the heavy lifting. Reed has 40%, he is the brains. Sue has 10%--they never see her doin

What do you mean by arbitration, Q. What do you mean by Arbitration? ...

Q. What do you mean by Arbitration? Ans: Arbitration is a device for setting up difference between the Railway Administration and contractor by intervention of third person

ACC 547, Complete the following problems located in Taxation of Individuals...

Complete the following problems located in Taxation of Individuals and Business Entities: • Comprehensive Problem 67 (Ch. 5) using Microsoft Excel, except prepare the computations

need help for doing my homwork, I have 95 qustions and I need to get ur he...

I have 95 qustions and I need to get ur help for some of these qustions that I can not do it. the homwork will be avalble just for 2 hours on this Sanday

Calculate the tax under capital cost allowance, Your firm  purchased a line...

Your firm  purchased a line of computer equipment for $1.5M  four  years ago.  It is assigned a CCA rate of 20% and the firm has a tax rate of 35%.  At the end of this year (year 4

How to find...., How do I find the original price of an item after the tax ...

How do I find the original price of an item after the tax was placed?

How much net income, Guay Corp a start up company provided services that we...

Guay Corp a start up company provided services that were acceptable to its customers and billed those customers for $350,000 in 2012. However, Guay collected only $280,000 cash in

Calculate the cost of preferred stock, Calculate the cost of preferred stoc...

Calculate the cost of preferred stock (r PS ) with the given information: Par Value = $200 Current Price = $208 Flotation Cost = $16 Annual Dividend = 12% of Par

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd