Week 10 project
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project10continue.docx2
Here are the comparative income statements of Crane Corporation.
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CRANE CORPORATION Comparative Income Statement For the Years Ended December 31 |
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2022 |
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2021 |
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Net sales |
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$644,500 |
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$557,200 |
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Cost of goods sold |
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457,600 |
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400,400 |
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Gross Profit |
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186,900 |
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156,800 |
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Operating expenses |
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77,100 |
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48,100 |
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Net income |
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$ 109,800 |
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$ 108,700 |
(a) Prepare a horizontal analysis of the income statement data for Crane Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
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CRANE CORPORATION Comparative Income Statement choose the accounting period |
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Increase or (Decrease) During 2022 |
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2022 |
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2021 |
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Amount |
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Percentage |
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Net sales |
$644,500 |
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$557,200 |
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$enter a dollar amount |
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enter percentages rounded to 1 decimal place |
% |
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Cost of goods sold |
457,600 |
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400,400 |
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enter a dollar amount |
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enter percentages rounded to 1 decimal place |
% |
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Gross Profit |
186,900 |
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156,800 |
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enter a dollar amount |
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enter percentages rounded to 1 decimal place |
% |
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Operating expenses |
77,100 |
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48,100 |
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enter a dollar amount |
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enter percentages rounded to 1 decimal place |
% |
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Net income |
$ 109,800 |
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$ 108,700 |
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$enter a dollar amount |
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enter percentages rounded to 1 decimal place |
% |
(b) Prepare a vertical analysis of the income statement data for Crane Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)
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CRANE CORPORATION Condensed Income Statements choose the accounting period |
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2022 |
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2021 |
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$ |
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Percent |
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$ |
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Percent |
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Net sales |
$644,500 |
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enter percentages rounded to 1 decimal place |
% |
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$557,200 |
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enter percentages rounded to 1 decimal place |
% |
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Cost of goods sold |
457,600 |
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enter percentages rounded to 1 decimal place |
% |
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400,400 |
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enter percentages rounded to 1 decimal place |
% |
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Gross Profit |
186,900 |
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enter percentages rounded to 1 decimal place |
% |
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156,800 |
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enter percentages rounded to 1 decimal place |
% |
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Operating expenses |
77,100 |
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enter percentages rounded to 1 decimal place |
% |
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48,100 |
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enter percentages rounded to 1 decimal place |
% |
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Net income |
$ 109,800 |
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enter percentages rounded to 1 decimal place |
% |
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$ 108,700 |
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enter percentages rounded to 1 decimal place |
% |
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
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Target Corporation |
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Wal-Mart Stores, Inc. |
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Income Statement Data for Year |
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Net sales |
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$66,700 |
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$418,000 |
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Cost of goods sold |
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45,000 |
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309,000 |
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Selling and administrative expenses |
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15,200 |
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78,000 |
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Interest expense |
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740 |
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1,900 |
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Other income (expense) |
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(95 |
) |
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(420 |
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Income tax expense |
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1,400 |
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6,700 |
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Net income |
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$ 4,265 |
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$ 21,980 |
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Balance Sheet Data (End of Year) |
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Current assets |
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$18,000 |
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$45,000 |
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Noncurrent assets |
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25,600 |
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120,000 |
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Total assets |
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$43,600 |
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$165,000 |
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Current liabilities |
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$11,000 |
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$56,000 |
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Long-term debt |
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17,200 |
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44,000 |
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Total stockholders’ equity |
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15,400 |
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65,000 |
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Total liabilities and stockholders’ equity |
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$43,600 |
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$165,000 |
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Beginning-of-Year Balances |
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Total assets |
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$45,000 |
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$163,000 |
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Total stockholders’ equity |
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13,400 |
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65,000 |
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Current liabilities |
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10,600 |
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58,000 |
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Total liabilities |
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31,600 |
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98,000 |
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Other Data |
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Average net accounts receivable |
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$7,500 |
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$3,900 |
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Average inventory |
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7,000 |
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32,800 |
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Net cash provided by operating activities |
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5,800 |
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26,900 |
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Capital expenditures |
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1,700 |
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11,800 |
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Dividends |
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450 |
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4,400 |
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For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)
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Ratio |
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Target |
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Wal-Mart |
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(1) |
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Current ratio |
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enter the current ratio |
:1 |
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enter the current ratio |
:1 |
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(2) |
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Accounts receivable turnover |
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enter accounts receivable turnover in times |
times |
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enter accounts receivable turnover in times |
times |
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(3) |
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Average collection period |
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enter average collection period in days |
days |
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enter average collection period in days |
days |
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(4) |
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Inventory turnover |
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enter inventory turnover in times |
times |
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enter inventory turnover in times |
times |
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(5) |
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Days in inventory |
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enter days in inventory ratio |
days |
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enter days in inventory ratio |
days |
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(6) |
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Profit margin |
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enter percentages |
% |
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enter percentages |
% |
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(7) |
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Asset turnover |
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enter asset turnover in times |
times |
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enter asset turnover in times |
times |
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(8) |
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Return on assets |
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enter percentages |
% |
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enter percentages |
% |
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(9) |
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Return on common stockholders’ equity |
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enter percentages |
% |
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enter percentages |
% |
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(10) |
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Debt to assets ratio |
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enter percentages |
% |
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enter percentages |
% |
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(11) |
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Times interest earned |
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enter times interest earned |
times |
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enter times interest earned |
times |
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(12) |
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Free cash flow |
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$enter a dollar amount |
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$enter a dollar amount |
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