# project 3 #2 and #3

sderrick26

Here are the comparative income statements of  Crane Corporation.

CRANE CORPORATION
Comparative Income Statement
For the Years Ended December 3120222021Net sales\$ 640,900\$ 570,000Cost of goods sold 434,700 405,900Gross Profit 206,200 164,100Operating expenses 77,800 41,200Net income\$  128,400\$  122,900

(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%.)

CRANE CORPORATION
Comparative Income Statement
choose the accounting period

Increase or (Decrease) During 202220222021AmountPercentageNet sales\$ 640,900\$ 570,000\$ enter a dollar amount        enter percentages rounded to 1 decimal place        %Cost of goods sold 434,700 405,900 enter a dollar amount        enter percentages rounded to 1 decimal place        %Gross Profit 206,200 164,100 enter a dollar amount        enter percentages rounded to 1 decimal place        %Operating expenses 77,800 41,200 enter a dollar amount        enter percentages rounded to 1 decimal place        %Net income\$  128,400\$  122,900\$ enter a dollar amount        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%.)

CRANE CORPORATION
Condensed Income Statements
choose the accounting period

2022

2021

\$

Percent

\$

Percent

Net sales

\$ 640,900

enter percentages rounded to 1 decimal place

%

\$ 570,000

enter percentages rounded to 1 decimal place

%

Cost of goods sold

434,700

enter percentages rounded to 1 decimal place

%

405,900

enter percentages rounded to 1 decimal place

%

Gross Profit

206,200

enter percentages rounded to 1 decimal place

%

164,100

enter percentages rounded to 1 decimal place

%

Operating expenses

77,800

enter percentages rounded to 1 decimal place

%

41,200

enter percentages rounded to 1 decimal place

%

Net income

\$  128,400

enter percentages rounded to 1 decimal place

%

\$  122,900

enter percentages rounded to 1 decimal place

Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).

Target
CorporationWal-Mart
Stores, Inc.Income Statement Data for YearNet sales\$65,600\$418,000Cost of goods sold45,000310,000Selling and administrative expenses14,30075,000Interest expense7202,200Other income (expense)(90)(380)Income tax expense1,400 6,900 Net income\$ 4,090 \$ 23,520 Balance Sheet Data
(End of Year)Current assets\$18,000\$47,000Noncurrent assets26,100 121,000 Total assets\$44,100 \$168,000 Current liabilities\$10,000\$55,000Long-term debt18,30043,000Total stockholders’ equity15,800 70,000 Total liabilities and stockholders’ equity\$44,100 \$168,000 Beginning-of-Year BalancesTotal assets\$44,000\$165,000Total stockholders’ equity13,20066,000Current liabilities10,80054,000Total liabilities30,80099,000Other DataAverage net accounts receivable\$7,900\$4,100Average inventory7,10034,100Net cash provided by operating activities5,70025,900Capital expenditures1,60011,500Dividends5204,200

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%.)

RatioTargetWal-Mart(1)Current ratioenter the current ratio         :1enter the current ratio         :1(2)Accounts receivable turnoverenter accounts receivable turnover in times         timesenter accounts receivable turnover in times         times(3)Average collection periodenter average collection period in days        daysenter average collection period in days        days(4)Inventory turnoverenter inventory turnover in times         timesenter inventory turnover in times         times(5)Days in inventoryenter days in inventory ratio         daysenter days in inventory ratio        days(6)Profit marginenter percentages         %enter percentages         %(7)Asset turnoverenter asset turnover in times        timesenter asset turnover in times        times(8)Return on assetsenter percentages         %enter percentages         %(9)Return on common stockholders’ equityenter percentages         %enter percentages         %(10)Debt to assets ratioenter percentages         %enter percentages         %(11)Times interest earnedenter times interest earned        timesenter times interest earned         times(12)Free cash flow\$enter a dollar amount        \$enter a dollar amount

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