Week 10 homework

kimtra

I need all work to be shown, meaning I need to understand how the answers were achieved.

E14-4 The comparative condensed income statements of Emley Corporation are shown below.

EMLEY CORPORATION Comparative Condensed Income Statements For the Years Ended December 31
	2017	2016
Net sales	$660,000	$600,000
Cost of goods sold	483,000	420,000
Gross profit	177,000	180,000
Operating expenses	125,000	120,000
Net income	$ 52,000	$ 60,000

Instructions

Prepare a horizontal analysis of the income statement data for Emley Corporation using 2016 as a base. (Show the amounts of increase or decrease.)
Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years.

E14-7 Frizell Company has the following comparative balance sheet data.

FRIZELL COMPANY Balance Sheets December 31
	2017	2016
Cash	$ 15,000	$ 30,000
Accounts receivable (net)	70,000	60,000
Inventory	60,000	50,000
Plant assets (net)	200,000	180,000
	$345,000	$320,000
Accounts payable	$ 50,000	$ 60,000
Mortgage payable (6%)	100,000	100,000
Common stock, $10 par	140,000	120,000
Retained earnings	55,000	40,000
	$345,000	$320,000

Additional information for 2017:

Instructions

Compute the following ratios at December 31, 2017.

E14-11 Wiemers Corporation's comparative balance sheets are presented on the next page.

WIEMERS CORPORATION Balance Sheets December 31
	2017	2016
Cash	$ 4,300	$ 3,700
Accounts receivable (net)	21,200	23,400
Inventory	10,000	7,000
Land	20,000	26,000
Buildings	70,000	70,000
Accumulated depreciation—buildings	(15,000)	(10,000)
Total	$110,500	$120,100
Accounts payable	$ 12,370	$ 31,100
Common stock	75,000	69,000
Retained earnings	23,130	20,000
Total	$110,500	$120,100

Wiemers's 2017 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000.

Instructions

Compute the following ratios for 2017.

P14-5 Selected financial data of Target Corporation and Wal-Mart Stores, Inc. for a recent year are presented here (in millions).

	Target Corporation	Wal-Mart Stores, Inc.
	Income Statement Data for Year
Net sales	$61,471	$374,526
Cost of goods sold	41,895	286,515
Selling and administrative expenses	16,200	70,847
Interest expense	647	1,798
Other income (expense)	1,896	4,273
Income tax expense	1,776	6,908
Net income	$ 2,849	$ 12,731
	Balance Sheet Data (End of Year)
Current assets	$18,906	$ 47,585
Noncurrent assets	25,654	115,929
Total assets	$44,560	$163,514
Current liabilities	$11,782	$ 58,454
Long-term debt	17,471	40,452
Total stockholders' equity	15,307	64,608
Total liabilities and stockholders' equity	$44,560	$163,514