Strayer ACC100 ch18 homework 26566
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Brief Exercise 18-2
Schellhammer Corporation reported the following amounts in 2013, 2014, and 2015.
2013 | 2014 | 2015 | |||||||
Current assets | $200,000 | $210,000 | $240,000 | ||||||
Current liabilities | $150,000 | $168,000 | $184,000 | ||||||
Total assets | $500,000 | $600,000 | $620,000 |
(b)
Perform each of the three types of analysis on Schellhammer’s current assets.(Round percentages to 0 decimal places, e.g. 43% and ratios to 2 decimal places, e.g.1.58.)
2013 | 2014 | 2015 | ||||||||
Horizontal Analysis | ||||||||||
Current assets |
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Vertical Analysis | ||||||||||
Current assets |
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Ratio Analysis | ||||||||||
Current ratio |
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Brief Exercise 18-3
Using the following data from the comparative balance sheet of Goody Company.
December 31, 2015 | December 31, 2014 | |||||
Accounts receivable | $520,000 | $400,000 | ||||
Inventory | $840,000 | $600,000 | ||||
Total assets | $3,000,000 | $2,500,000 |
Illustrate horizontal analysis.(Round percentages to 0 decimal places, e.g. 12%.)
Increase or (Decrease) | |||||||||||||
Goody Company | December 31, 2015 | December 31, 2014 | Amount | Percentage | |||||||||
Accounts receivable | $520,000 | $400,000 | $ |
| % | ||||||||
Inventory | $840,000 | $600,000 | $ |
| % | ||||||||
Total assets | $3,000,000 | $2,500,000 | $ |
| % | ||||||||
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Brief Exercise 18-8
Vertical analysis (common size) percentages for Kochheim Company’s sales, cost of goods sold, and expenses are shown below.
Vertical Analysis | 2015 | 2014 | 2013 | |||
Sales | 100.0 | 100.0 | 100.0 | |||
Cost of goods sold | 60.2 | 62.4 | 63.5 | |||
Expenses | 25.0 | 25.6 | 27.5 |
(a) Calculate net income.
2015 | 2014 | 2013 | ||||
Net income |
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(b) Did Kochheim’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period?
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(a2)
Compute for each year the average collection period. At the end of 2013, accounts receivable (net) was $480,000.(Round answers to 1 decimal place, e.g. 1.6.)
2015 | 2014 | |||
Average collection period |
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Brief Exercise 18-12 (Part Level Submission)The following data are from the income statements of Haskin Company.
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(a2)
Compute for each year the average days to sell the inventory.(Round answers to 1 decimal place, e.g. 1.6.)
2015 | 2014 | |||
Days in inventory |
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Brief Exercise 18-13
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, e.g. 125.)
Cash dividends | $ | |
Average assets | $ |
Exercise 18-2
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, e.g. 48.5%.)
NAVARRO CORPORATION | ||||||||
2015 | 2014 | |||||||
Amount | Percent | Amount | Percent | |||||
Net sales | $750,000 |
| $600,000 |
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Cost of goods sold | 465,000 |
| 390,000 |
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Gross profit | 285,000 |
| 210,000 |
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Selling expenses | 105,000 |
| 66,000 |
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Administrative expenses | 60,000 |
| 54,000 |
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Total operating expenses | 165,000 |
| 120,000 |
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Income before income taxes | 120,000 |
| 90,000 |
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Income taxes expense | 36,000 |
| 27,000 |
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Net income | $84,000 |
| $63,000 |
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Exercise 18-5
SupposeNordstrom, 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).
(a)
Compute the four liquidity ratios at the end of the year.(Round answers to 1 decimal place, e.g. 1.6 .)
11 years ago
