Financial Statement Notes: Quarterly Data Quarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Required a. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent. b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent.

a. The computation of the percent of annual net sales by Company A are as follows:

Quarter 1 = 24% ($186,111/$780,326 x 100)      

Quarter 2 =23% ($177,537/$780,326 x 100)

Quarter 3 = 26% ($203,070/$780,326 x 100)

Quarter 4 = 27% ($213,608/$780,326 x 100)

b. The computation of the percent of annual net sales by Company B are as follows:

Quarter 1 = 16% ($84,896/$546,165  x 100)      

Quarter 2 =15% ($83,796/$546,165  x 100)

Quarter 3 = 26% ($142,137/$546,165  x 100)

Quarter 4 = 43% ($235,336/$546,165  x 100)

Data and Calculations:

(Amounts in Thousands)

                   First Quarter Second Quarter Third Quarter Fourth Quarter Year

Company A:

Net sales         $186,111          $177,537          $203,070      $213,608 $780,326

Gross profit      55,457              53,643              64,024          69,374     242,498

Company B:

Net sales       $84,896           $83,796            $142,137     $235,336    $546,165

Gross profit     53,900             52,983               66,018         104,961      277,862

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Answer and Explanation:

The computation of percent of annual net sales generated each quarter by Company A and B is shown below:-

                                   First        Second           Third          Fourth

                                    Quarter    Quarter          Quarter       Quarter

a. Company A annual

net sales percentage    24%         23%               26%            27%

($186,111 ÷ $780,326) ($177,537 ÷ $780,326) ($203,070 ÷ $780,326) (213,608 ÷ $780,326)

b. Company B annual

net sales percentage     16%           15%               26%           43%

($84,896 ÷ $546,165) ($83,796 ÷ $546,165) ($142,137 ÷ $546,165) ($235,336 ÷ $546,165)

So, for computing the percent of annual net sales generated each quarter by Company A and B we simply divide the Net sales of every quarter by Net sales of Year same for Company B.

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