Presented Below Are Condensed Data from the Financial Statements of Gallo

question 109

Essay

Presented below are condensed data from the financial statements of Gallo Factory for 2017 and 2016.The figures are expressed in thousands.Use this information to answer the questions that follow.

$\begin{array}{lrr}\text { Statement A }&2017&2016\\\\\text { Total current assets } & \$ 82,309 & \$ 80,080 \\\text { Property, plant, and equipment } & & \\\text { (net of accumulated depreciation) } & 63,451 & 62,724 \\\text { Investments } & 303 & 1,061 \\\text { Other assets } & 3,438 & 2,606\\\text { Total assets }&\$149,501&\$146,471\\\\\text { Total current liabilities } & \$ 33,928 & \$ 28,668 \\\text { Long-term debt } & 20,491 & 25,676 \\\text { Deferred income taxes and contingencies } & 4,174 & 5,208 \\\text { Total liabilities } & \$ 58,593 & \$ 59,552 \\\text { Total stockholders' equity } & \$ 90,908 & \$ 86,919 \\\text { Total liabilities and stockhol ders' equity } & \$ 149,501 & \$ 146,471 \\\\\text { Statement B }&2017&2016\\\text { Net sales } & \$ 209,203 & \$ 174,206 \\\text { Cost of sales } & 136,225 & 114,284 \\\text { Gross profit } & \$ 72,978 & \$ 59,922 \\\text { Selling, general, and administrative expenses } & 63,895 & 53,520 \\\text { Other income (expense) } & 693 & (118)\\\text { Income (loss) before income taxes } & \$ 9,776 & \$ 6,284 \\\text { Income tax expense } & \$ {3,534} & \$ 3,388 \\\text { Net income (loss) } &{6,242}&{\$ 3,896}\end{array}$
-Required: Was Gallo Factory profitable both years? What are the amounts of the total revenues and total expenses,respectively,for 2017? Which financial statement provides this information to you?

Recognize the psychological aspects affecting the consumer buying process, including cognitive dissonance and the influence of social factors.

Understand the concept and importance of market segmentation in consumer markets.

Identify and explain different methods of market segmentation and their applicability.

Comprehend the criteria for successful market segments and the concept of segment viability.

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Definitions:

Commodity X

A placeholder term for any generic good or service in economic discussions or models.

Commodity Y

A generic term for any tradable good or material product that is interchangeable with other goods of the same type.

Utility Function

It's a mathematical representation of how a consumer's preferences over a set of goods and services translates into a level of satisfaction or utility.

Price of X

The cost at which a specific item or commodity, denoted as "X," is sold in the market.