Assignment

1)Horizontal analysis (trend analysis) percentages for Spartan Company’s sales, cost of goods sold, and expenses are listed here.

Horizontal Analysis		2012		2011		2010
Sales		96.2	%		104.8	%		100.0	%
Cost of goods sold		101.0			98.0			100.0
Expenses		105.6			95.4			100.0

Explain whether Spartan’s net income increased, decreased, or remained unchanged over the 3-year period.

2) Using these data from the comparative balance sheet of Rosalez Company, perform vertical analysis.  (Round percentages to 1 decimal place, e.g. 12.5%.)

		Dec. 31, 2012		Dec. 31, 2011
		Amount		Percentage		Amount		Percentage
Accounts receivable		$ 538,300			%		$ 374,000			%
Inventory		$ 749,800			%		$ 637,800			%
Total assets		$3,167,300			%		$2,785,300			%

3) Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here.

Vertical Analysis		2012		2011		2010
Sales		100	%		100	%		100	%
Cost of goods sold		62.8			63.4			66.9
Expenses		25.3			26.1			29.9

Did Vallejo’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.

4)

These selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). 2009 2008 Cash $ 13,606 $ 7,669 Accounts receivable 23,045 19,951 Inventories 31,087 31,345 Other current assets 12,522 11,909 Total current assets $ 80,260 $ 70,874 Total current liabilities $245,805 $326,203

(a) Compute the current ratio for each year.  (Round answers to 2 decimal places, e.g. .12 : 1.) 2009 2008 Current ratio: :1 :1

5) Staples, Inc. is one of the largest suppliers of office products in the United States. It had net income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. What is Staples, Inc.’s asset turnover ratio and profit margin ratio?  (Round answers to 2 decimal places, e.g. 1.25 or 2.05%.)

Asset turnover ratio			times
Profit margin ratio			%

6) Selected data taken from a recent year’s financial statements of trading card company Topps Company, Inc. are as follows (in millions).

Net sales		$326.7
Current liabilities, beginning of year		41.1
Current liabilities, end of year		62.4
Net cash provided by operating activities		10.4
Total liabilities, beginning of year		65.2
Total liabilities, end of year		73.2
Capital expenditures		3.7
Cash dividends		6.2

Compute these ratios: current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Provide a brief interpretation of your results.  (Round answers to 2 decimal places, e.g. 0.12.)

Current cash debt coverage ratio			times
Cash debt coverage ratio			times
Free Cash Flow		$	millions

7) Using these data from the comparative balance sheet of Rosalez Company, perform horizontal analysis.  (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.)

						Increase or (Decrease)
		Dec. 31, 2012		Dec. 31, 2011		Amount		Percentage
Accounts receivable		$ 492,500		$ 368,500		$			%
Inventory		$ 808,500		$ 606,300		$			%
Total assets		$3,172,800		$2,768,500		$			%