ACC557 Week 10 E14-3 E14-4 E14-13 P14-6A
accounting teacherACC557 Week 10 E14-3 E14-4 E14-13 P14-6A
E14-3 The comparative condensed balance sheets of Garcia Corporation are presented below.
Garcia Corporation
Comparative condensed Balance Sheets
December 31
Assets | 2014 | 2013 |
Current assets | $76,000 | $80,000 |
Property, plant, and equipment(net) | 100,000 | 90,000 |
Intangibles | 24,000 | 40,000 |
Total assets | $200,000 | $210,000 |
Liabilities and stockholders’ equity |
|
|
Current liabilities | $40,000 | $48,000 |
Long-term liabilities | 140,000 | 150,000 |
Stockholders equity | 20,000 | 12,000 |
Total liabilities and stockholders’ equity | $200,000 | $210,000 |
Instructions
(a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base.
(b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014.
E14-4 The comparative condensed income statements of Hendi Corporation are shown below.
Hendi Corporation
Comparative Condensed income Statements
For the years Ended December 31
| 2014 | 2013 |
Net sales | $600,000 | $500,000 |
Cost of goods sold | 468,000 | 400,000 |
Gross profit | 132,000 | 100,000 |
Operating expenses | 60,000 | 54,000 |
Net income $72,000 | $72,000 | $46,000 |
Instructions
(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show the amounts of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years.
E14-13 Maulder Corporation has income from continuing operations of $290,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes).
1. An extraordinary loss of $70,000.
2. A gain of $35,000 on the discontinuance of a division.
3. A correction of an error in last year’s financial statements that resulted in a $25,000 understatement of 2013 net income.
Assume all items are subject to income taxes at a 30% tax rate.
Instructions
(a) Prepare an income statement, beginning with income from continuing operations.
(b) Indicate the statement presentation of any item not included in (a) above.
P14-6 The comparative statements of Beulah Company are presented below.
Liabilities and Stockholders’ Equity
Current liabilities |
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|
Accounts payable | $122,000 | $110,000 |
Income taxes payable | 12,000 | 11,000 |
Total current liabilities | 134, 000 | 121,000 |
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Long term liabilities |
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Bonds payable | 120,000 | 80,000 |
Total liabilities | 254,000 | 201,000 |
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Stockholders’ equity |
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Common stock($5 par) | 150,000 | 150,000 |
and so on….
Additional data:
The common stock recently sold at $19.50 per share.
Instructions
Compute the following ratios for 2014.
(a) Current. (h) Return on common stockholders’ equity.
(b) Acid-test. (i) Earnings per share.
(c) Accounts receivable turnover. (j) Price-earnings.
(d) Inventory turnover. (k) Payout.
(e) Profit margin. (l) Debt to total assets.
(f) Asset turnover. (m) Times interest earned.
(g) Return on assets.
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