1) 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) Calculat

  

1) 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 for 2015, 2014, & 2013.

2) The following data are taken from the financial statements of Rainsberger Company.

  

2015

2014

 

Accounts receivable (net), end of   year

$550,000

$520,000

 

Net sales on account

3,960,000

3,100,000

 

Terms for all sales are 1/10,   n/60.

    

Compute for each year the accounts receivable turnover. At the end of 2013, accounts receivable (net) was $480,000.(Round answers to 1 decimal place, e.g. 1.6.)

3) 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

       %

%

%

 

Vertical Analysis

 

Current assets

%

%

%

 

Ratio Analysis

 

Current ratio