| 1) Complete the vertical analysis on the balance sheet for the nursery for 2012. | NOTE: Round the answers to the nearest tenth. |
| Assets | Amount | Percent |
| Cash | $9,226 | _____% |
| Accounts Receivable | $7,128 | _____% |
| Merchandise Inventory | $17,814 | _____% |
| Total Assets | $34,168.00 | _____% |
| Liabilities |
| Accounts Payable | $9,917 | _____% |
| Wage Payable | $3,257 | _____% |
| Total Liability | $13,174 | _____% |
| Owners Equity |
| The Owner's Capital | $20,994 | _____% |
| Total Liabilities and Owner's Capital | $34,168 | _____% |
| 2) Extend the income statement for miss Muffins' Bakery to include a vertical analysis for 2010 and 2011. | NOTE: Round the answers to the nearest tenth. |
| | 2011 | Percent of net sales | 2010 |
| Gross sales | $35,339 | _____% | $32,408 | _____% |
| Returns and allowances | $342 | _____% | $290 | _____% |
| Net Sales | $34,997 | _____% | $32,118 | _____% |
| Cost of beginning inventory | $17,390 | _____% | $16,741 | _____% |
| Cost of purchases | $27,098 | _____% | $33,746 | _____% |
| Cost of ending inventory | $22,522 | _____% | $21,510 | _____% |
| Cost of goods sold | $21,966 | _____% | $28,977 | _____% |
| Gross profit | $13,031 | _____% | $3,141 | _____% |
| Total operating expenses | $3,244 | _____% | $1,894 | _____% |
| Net income | $9,787 | _____% | $1,247 | _____% |
| 3) Extend the income statement for Miss Muffins' Bakery to include the amounts of increase or decrease and the percents of increase or decrease and the percents of increase for a horizontal analysis. | NOTE: Round the answers to the nearest tenth. |
| Round to the nearest tenth as needed | 2011 | 2010 | Increase (Decrease amount) | Percentage increase (decrease) |
| Gross sales | $35,079 | 32,409 | ___ | ___% |
| Returns and allowances | 342 | 299 | ___ | ___% |
| Net Sales | 34,737 | 32,110 | ___ | ___% |
| Cost of beginning inventory | 17,356 | 16,535 | ___ | ___% |
| Cost of purchases | 27,486 | 33,965 | ___ | ___% |
| Cost of ending inventory | 22,515 | 21,624 | ___ | ___% |
| Cost of goods sold | 22,327 | 28,876 | ___ | ___% |
| Gross profit | 12,410 | 3,234 | ___ | ___% |
| Total operating expenses | 3,163 | 1,827 | ___ | ___% |
| Net income | 9,247 | 1,407 | ___ | ___% |
| 4) Complete the horizontal analysis showing differences in dollar amounts and percents on the comparitive balance sheet for the bakery. (Use parentheses to indicate decreases. Round all the percentaged to the nearest tenth. | NOTE: Round the answers to the nearest tenth. |
| | | | Increase (Decrease amount) |
| Assets | 2012 | 2011 | Amount | Percent |
| Cash | $1,948 | $1,749 | $___ | ___% |
| Accounts Receivable | 4,282 | 3,758 | ___ | ___% |
| Merchandise Inventory | 2,472 | 2,090 | ___ | ___% |
| Total Assets | $8,702 | $7,597 | ___ | ___% |
| Liabilities |
| Accounts Payable | $3,554 | $3,681 | $___ | ___% |
| Wages Payable | 1,829 | 1,412 | ___ | ___% |
| Total Liabilities | $5,383 | $5,093 | $___ | ___% |
| Owners Equity |
| The Owner's Capital | 3,319 | 2,504 | ___ | ___% |
| Total Liabilities and Owner's Equity | $8,702 | $7,597 | $___ | ___% |
| 5) A man needed money to buy lawn equipment. He borrowed $500 or seven months and paid $53.94 in interest. What was the rate of interest? The rate of interest per year was __%. | NOTE: Round to one decimal place as needed |
| 6) Find the acid-test ration for a business if the balance sheet shows the following amounts: cash, $32,876; receivables, $12,046; marketable securities, $0; current liabilities, $23,219. | NOTE: Type an integer or decimal rounded to the nearest hundredth. |
| The acid-ration is approximately____. |
| 7) Find the gross profit margin ration if the The Premier Eatery had net sales of $395,737 and its cost of goods solds was $178,311. | NOTE: Type an integer or decimal rounded to three decimal places as needed. |
| The gross profit margin ration is ___to 1. |
sunshine1212
week4_qpart2.xls
