Key Financial Data Income Statement,Dreamscape,Inc

question 127

Essay

Key Financial Data Income Statement,Dreamscape,Inc.
For the Year Ended December 31,2013 Prepare a common-size income statement for Dreamscape,Inc.for the year ended December 31,2013.Evaluate the company's performance against industry average ratios and against last year's results.

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Definitions:

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intentionally set below the market equilibrium to protect consumers.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Price Floor

A minimum price set by the government or a regulatory body, below which a particular good or service cannot legally be sold.

Surplus

An excess quantity, especially referring to the situation where supply exceeds demand in a market, often leading to a decrease in prices.