# Problem Solving

mylyn27

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 [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. 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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