Problem Solving
mylyn27Please solve the following: A, B, C, D. I need the asnwer by tomorrow around 10:00 am. I am solving them now and actually answered some but I would like to get a second opinion or another work by someone else. Thank you!
A.The following data are from the income statements of Haskin Company.
2015 | 2014 | |||||
Sales | $6,420,000 | $6,240,000 | ||||
Beginning inventory | 940,000 | 860,000 | ||||
Purchases | 4,340,000 | 4,661,000 | ||||
Ending inventory | 1,020,000 | 940,000 |
Compute for each year the inventory turnover (Round answers to 1 decimal place).
1. 2015 __________
2. 2014 __________
B. Guo Company has owners’ equity of $400,000 and net income of $66,000. It has a payout ratio of 20% and a return on assets of 15%.
How much did Guo pay in cash dividends, and what were its average assets? (Round answers to 0 decimal places)
3. Cash dividends ________
4. Average Assets ________
C. Operating data for Navarro Corporation are presented below.
2015 | 2014 | |||
Net sales | $750,000 | $600,000 | ||
Cost of goods sold | 465,000 | 390,000 | ||
Selling expenses | 105,000 | 66,000 | ||
Administrative expenses | 60,000 | 54,000 | ||
Income tax expense | 36,000 | 27,000 | ||
Net income | 84,000 | 63,000 |
Prepare a schedule showing a vertical analysis for 2015 and 2014. (Round answers to 1 decimal place)
NAVARRO CORPORATION | |||||||
2015 | 2014 | ||||||
Amount | Percent | Amount | Percent | ||||
Net sales | $750,000 | [removed]% | $600,000 | [removed]% | |||
Cost of goods sold | 465,000 | [removed]% | 390,000 | [removed]% | |||
Gross profit | 285,000 | [removed]% | 210,000 | [removed]% | |||
Selling expenses | 105,000 | [removed]% | 66,000 | [removed]% | |||
Administrative expenses | 60,000 | [removed]% | 54,000 | [removed]% | |||
Total operating expenses | 165,000 | [removed]% | 120,000 | [removed]% | |||
Income before income taxes | 120,000 | [removed]% | 90,000 | [removed]% | |||
Income taxes expense | 36,000 | [removed]% | 27,000 | [removed]% | |||
Net income | $84,000 | [removed]% | $63,000 | [removed]% |
D. Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.
NORDSTORM, INC. | ||||||||
(in millions) | End-of-Year | Beginning-of-Year | ||||||
Cash and cash equivalents | $ 795 | $ 72 | ||||||
Accounts receivable (net) | 2,035 | 1,942 | ||||||
Inventory | 898 | 900 | ||||||
Prepaid expenses | 88 | 93 | ||||||
Other current assets | 238 | 210 | ||||||
Total current assets | $4,054 | $3,217 | ||||||
Total current liabilities | $2,014 | $1,601 |
For the year, net sales were $8,258 and cost of goods sold was $5,328 (in millions).
Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 1.6 .)
1. Current ratio ________ 3. Accounts receivable turnover _______
2. Acid-test ratio ________ 4. Inventory turnover _____________
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