Problem Solving

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Please 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
Condensed Income Statements
For the Years Ended December 31

 

2015

 

2014

 

Amount

 

Percent

 

Amount

 

Percent

Net sales

$750,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

 

$600,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Cost of goods sold

465,000

 

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390,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Gross profit

285,000

 

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210,000

 

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Selling expenses

105,000

 

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66,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Administrative expenses

60,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

 

54,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Total operating expenses

165,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

 

120,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Income before income taxes

120,000

 

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90,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Income taxes expense

36,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

 

27,000

 

http://edugen.wiley.com/edugen/art2/common/pixel.gif[removed]%

Net income

$84,000

 

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$63,000

 

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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.
Balance Sheet (partial)

(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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