Below Is Some Information Taken from the Income Statements of RPG

question 103

Essay

Below is some information taken from the income statements of RPG and RPM Co.
$\begin{array}{lrlr}\underline { \text {RPG Co. } }&\underline { 2015 }&\underline { 2014 }&\underline { 2013 }\\\text { Net Sales } &\$ 152,000 & {146,000} & \$ 140,000 \\\text { Cost of Goods Sold } &115,000 & 110,000 & 107,000 \\\text { GrossProfit } &\underline { \$ 37,000} &\underline { \$ 36,000}& \underline { \$ 33,000} \\\\A)\underline { \text { RPM Co.} }\\\text { Net Sales } &\$ 84,000 & \$ 83,000 & \$ 80,000 \\\text { Cost of GoodsSold } &70,000 & 69,000 & 68,000\\\text { GroseProfit } &\underline { \$ 14.000 }&\underline { \$ 14.000 }&\underline { \$ 12.000 }\end{array}$ A) Using time series (or trend) analyss, comment on the trend of RPG's cost of goods sold and gross profit.
B) Using cross sectional analysis, compare RPG's gross profit to that of RPM.

• A)
• \underline { \text { RPM Co.} }\\
• \text { Net Sales } &\$ 84,000 & \$ 83,000 & \$ 80,000 \\
• \text { Cost of GoodsSold } &70,000 & 69,000 & 68,000\\
• \text { GroseProfit } &\underline { \$ 14.000 }&\underline { \$ 14.000 }&\underline { \$ 12.000 }
• \end{array}\) A) Using time series (or trend) analyss, comment on the trend of RPG's cost of goods sold and gross profit.
• B) Using cross sectional analysis, compare RPG's gross profit to that of RPM.

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Definitions:

Owner

The individual or entity that holds the legal right or title to an object, property, or enterprise.

Partnership

A legitimate arrangement for conducting business that necessitates shared managerial responsibilities and profits among multiple partners.

Small Law Practice

A small law practice is a legal firm with a limited number of attorneys, often specializing in specific areas of law and offering more personalized services than larger firms.

Revenues

The total income generated from normal business operations and other activities like investments, calculated before any expenses are deducted.