accounting help

acct301_week_3_homework.xlsx

Problem 1

Problem 1
Required: Express each income statement component as a percentage of sales, and comment on the trends in each line from 2012 to 2013.
(25 points)
	2013	% Sales	2012	% Sales	Comments
Sales	$ 1,000,000	100%	$ 1,200,000	100%	sale earnings
Cost of goods sold	$ 450,000	45%	$ 600,000	50%	5% loss in sales from 2012 to 2013
Gross margin	$ 550,000	55%	$ 600,000	50%	5% increase in goods sold from 2012 to 2013
Operating expenses	$ 600,000	60%	$ 450,000	38%	22% increase in operational expenses
Net income	$ (50,000)	-5%	$ 150,000	13%	2012 had a positive profit, 2013 loss 5% due to higher operational expenses

Problem 2
Required: Compute (1) accounts receivable turnover for 2013, (2) the inventory turnover for 2013, and (3) the net margin for 2013.
(25 points)
		2013	2012	AR turnover 2013	Inv. Turnover 2013	Net margin 2013
Balance sheet items
	Accounts receivable	$ 380,000.00	$ 376,000.00
	Allowance for doubtful accounts	$ (20,000.00)	$ (16,000.00)
	Net accounts receivable	$ 360,000.00	$ 360,000.00
	Inventory	$ 480,000.00	$ 440,000.00
Income statement items
	Sales	$ 3,400,000.00	$ 3,080,000.00
	Cost of goods sold	$ 1,600,000.00	$ 1,440,000.00
	Operating expenses	$ 780,000.00	$ 680,000.00