Problem & Stock Options Paper (400 words) Request

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354 ACC201

352 ChEp-.er9

L02 Problem 9-22 Horiwnta/ analysis Financial statements for Bernard Company follow.

C ECIAG Total Assets: -11.6% Total Uabllities: + 14.4%

BERNARD COMPANY Balance Sheets

As of December 31

Assets Current assets

Cash Martetable secunties Acco'JI1ts recemble Inet) Inventones P epald ItBms

Total current assets Inwstmerns !'fa lnet! und

lOtaI assets

Cur,rertiabltties Gte$ PfYIbIe cc pc e

S espaya e otal current rIB es

ncurrel1lliab es 80 ds payable Other

Total noncurrent tiabiities Totalliablhties

Stockholders' equity Preferred stock. par value S10, 4% cumulative. non-

participating; B.lDl shires authorized and issued Common stock. no par; 50,000 shares authorized;

10,000 shares issued Retained earnings Totel stockholders' equity

Totaillabiilles and stockholders' eQurty

2012 2011

S 16,000 20,000 54,000

135,000 25,000

250,000 27,000

270,000 29.000

$576.000

S 17.000 113,QJ 21,000

151,800

80,000

80,000 132,:dlO 292,200

$576,000

SIUJOO 6.DOO

46.DOO 143.DOO

ID.DOO 217.DOO

20.000 255.DOO

24.DOO $516.DOO

S 6,000 IOD.DOO

15,OOl 121,OOl

80.000

80.000 1flltOOO 268.DOO

S516.ooo

. . " or e ~

Revenues Sales Joetl Other revenues

Total revenues

2012 2011

$l3O,000 8,000

238,000

$210.000 5.000

215.000 cominued

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Survey of Accounting. Third Edition

2012 21111

fina 51 !bremen:: Analy!!is 353

Expenses Cost of goods sold Selling, general, and admlnislfatlve expenses Interest axpense Income tax expense

Total expenses Net earnings fnet incomel Retained earnings, January 1

Less: Preferred stock dividenDs Comrr;Oll stock dividends

Retained eam/ngs, December 31

1211,000 55,000

8.000 23.000

206,000 32.000

l!Jl,DOO 2,800 5.000

SI32.200

103,000 50,000 7,200

22,000

~ 32,800 83,000 2.800 5,000

$l!Jl,OOO

Required Prepare a horizontal analysis of both the balance sheet and income statement.

Problem 9-23 Ratio analysis Required Use the financial statements for Bernard Company from Problem 9-22 to calculate the following for 2012 and 2011.

a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover (beginning receivables at January I, 201 I, were 547,000) Co Average number of days to collect accounts receivable f. Inventory turnover (beginning inventory at January 1,2011, was SI4O,000) g. Average number of days to sell in 'cotory h. Debt to assets ratio t Debt to equity ratio j. Times interest earned k. Plant assets to long-term debt I. Net margin m. Asserrurnover IL Return all. investment 0. Return 00 equity P. Earnings pet share q. Book value per share of COlIUllOIl stock r, Price-earnings ratio (market price per share: 2011, 511.i5; 2012, SI2.5O) So Dividend yield on common stock

Problem 9-24 Vertir:aJ tIIUllysu Required Use the financial statements for Bernard Company from Problem 9-22 to perform a vertical analysis of both the balance sheets and income statements for 2012 and 2011.

LD 2, 3, 4. 5, 6. 7

JC tHEe F GURES k, 21112:2.0:1 p. 21111:S2.96

LD2

JC CHECKF URE 2012 Retained E.arnings! 23%