ACCOUNTING HOMEWORK

Print by: Sadu Singh FUNDAMENTALS OF ACCOUNTING II: 352923 / Project

*Problem 13-4A The following financial information is for Cheaney Company.

CHEANEY COMPANY Balance Sheets December 31

Assets 2012 2011 Cash $ 71,500 $ 65,100 Short-term investments 54,800 39,200 Receivables 103,400 89,200 Inventories 238,900 168,400 Prepaid expenses 29,800 27,500 Land 134,400 134,400 Building and equipment (net) 259,100 183,300

Total assets $891,900 $707,100

Liabilities and Stockholders’ Equity Notes payable $170,600 $107,100 Accounts payable 68,600 54,100 Accrued liabilities 39,200 39,200 Bonds payable, due 2015 249,900 171,800 Common stock, $10 par 199,800 199,800 Retained earnings 163,800 135,100

Total liabilities and stockholders’ equity $891,900 $707,100

CHEANEY COMPANY Income Statements

For the Years Ended December 31 2012 2011

Sales $893,300 $797,500 Cost of goods sold 644,900 575,600 Gross profit 248,400 221,900 Operating expenses 191,400 159,700

Net income $ 57,000 $ 62,200

Additional information:

1. Inventory at the beginning of 2011 was $115,500. 2. Receivables (net) at the beginning of 2011 were $89,100. 3. Total assets at the beginning of 2011 were $638,700. 4. No common stock transactions occurred during 2011 or 2012. 5. All sales were on account.

*(a) Compute the liquidity and profitability ratios of Cheaney Company for 2011 and 2012. (Round all answers to 2

Attempts: 0 of 2 used

decimal places, e.g. 1.83 or 12.61%. If % change is a decrease show the numbers as negative, e.g. -12.61% or (12.61%).)

2011 2012 % Change

LIQUIDITY

Current :1 :1 %

Receivables turnover times times %

Inventory turnover times times %

2011 2012 % Change PROFITABILITY Profit margin % % %

Asset turnover times times %

Return on assets % % %

Earnings per share $ $ %

*(b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Copyright © 2000-2013 by John Wiley & Sons, Inc. or related companies. All rights reserved.