Problem & Stock Options Paper (400 words) Request
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354 ACC201
352 ChEp-.er9
L02 Problem 9-22 Horiwnta/ analysis Financial statements for Bernard Company follow.
C ECIAG Total Assets: -11.6% Total Uabllities: + 14.4%
BERNARD COMPANY Balance Sheets
As of December 31
Assets Current assets
Cash Martetable secunties Acco'JI1ts recemble Inet) Inventones P epald ItBms
Total current assets Inwstmerns !'fa lnet! und
lOtaI assets
Cur,rertiabltties Gte$ PfYIbIe cc pc e
S espaya e otal current rIB es
ncurrel1lliab es 80 ds payable Other
Total noncurrent tiabiities Totalliablhties
Stockholders' equity Preferred stock. par value S10, 4% cumulative. non-
participating; B.lDl shires authorized and issued Common stock. no par; 50,000 shares authorized;
10,000 shares issued Retained earnings Totel stockholders' equity
Totaillabiilles and stockholders' eQurty
2012 2011
S 16,000 20,000 54,000
135,000 25,000
250,000 27,000
270,000 29.000
$576.000
S 17.000 113,QJ 21,000
151,800
80,000
80,000 132,:dlO 292,200
$576,000
SIUJOO 6.DOO
46.DOO 143.DOO
ID.DOO 217.DOO
20.000 255.DOO
24.DOO $516.DOO
S 6,000 IOD.DOO
15,OOl 121,OOl
80.000
80.000 1flltOOO 268.DOO
S516.ooo
. . " or e ~
Revenues Sales Joetl Other revenues
Total revenues
2012 2011
$l3O,000 8,000
238,000
$210.000 5.000
215.000 cominued
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Survey of Accounting. Third Edition
2012 21111
fina 51 !bremen:: Analy!!is 353
Expenses Cost of goods sold Selling, general, and admlnislfatlve expenses Interest axpense Income tax expense
Total expenses Net earnings fnet incomel Retained earnings, January 1
Less: Preferred stock dividenDs Comrr;Oll stock dividends
Retained eam/ngs, December 31
1211,000 55,000
8.000 23.000
206,000 32.000
l!Jl,DOO 2,800 5.000
SI32.200
103,000 50,000 7,200
22,000
~ 32,800 83,000 2.800 5,000
$l!Jl,OOO
Required Prepare a horizontal analysis of both the balance sheet and income statement.
Problem 9-23 Ratio analysis Required Use the financial statements for Bernard Company from Problem 9-22 to calculate the following for 2012 and 2011.
a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover (beginning receivables at January I, 201 I, were 547,000) Co Average number of days to collect accounts receivable f. Inventory turnover (beginning inventory at January 1,2011, was SI4O,000) g. Average number of days to sell in 'cotory h. Debt to assets ratio t Debt to equity ratio j. Times interest earned k. Plant assets to long-term debt I. Net margin m. Asserrurnover IL Return all. investment 0. Return 00 equity P. Earnings pet share q. Book value per share of COlIUllOIl stock r, Price-earnings ratio (market price per share: 2011, 511.i5; 2012, SI2.5O) So Dividend yield on common stock
Problem 9-24 Vertir:aJ tIIUllysu Required Use the financial statements for Bernard Company from Problem 9-22 to perform a vertical analysis of both the balance sheets and income statements for 2012 and 2011.
LD 2, 3, 4. 5, 6. 7
JC tHEe F GURES k, 21112:2.0:1 p. 21111:S2.96
LD2
JC CHECKF URE 2012 Retained E.arnings! 23%