14-3 GARCIA CORPORATION Comparative Condensed Balance Sheets December 31 2014 2013 Assets Current assets $ 72,970 $ 81,190 Property, plant, and equipment (net) 98,670 90,920 Intangibles 27,370 39,890 Total assets $199,010 $212,000 Liabilities and stockholders equity Current liabilities $ 41,020 $ 48,650 Long-term liabilities 142,190 150,630 Stockholders equity 15,800 12,720 Total liabilities and stockholders equity $199,010 $212,000 (a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.) GARCIA CORPORATION Condensed Balance Sheets December 31 2014 2013 Increase (Decrease) Percentage Change from 2013 Assets Current Assets $72,970 $81,190 $ % Property, Plant & Equipment (net) 98,670 90,920 % Intangibles 27,370 39,890 % Total assets $199,010 $212,000 $ % Liabilities and Stockholders' Equity Current Liabilities $41,020 $48,650 $ % Long-term Liabilities 142,190 150,630 % Stockholders' Equity 15,800 12,720 % Total liabilities and stockholders' equity $199,010 $212,000 $ % (b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014. (Round percentages to 1 decimal place, e.g. 12.3%.) GARCIA CORPORATION Condensed Balance Sheet December 31, 2014 Amount Percent Assets Current Assets $72,970 % Property, Plant, and Equipment (net) 98,670 % Intangibles 27,370 % Total assets $199,010 % Liabilities and Stockholders' Equity Current Liabilities $41,020 % Long-term Liabilities 142,190 % Stockholders' Equity 15,800 % Total liabilities and stockholders' equity $199,010 % Exercise 14-5 Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 30, 2010, are shown below. Nordstrom, Inc. Balance Sheet (partial) (in millions) End-of-Year Beginning-of-Year Cash and cash equivalents $ 795 $ 72 Accounts receivable (net) 2,035 1,942 Merchandise inventory 898 900 Prepaid expenses 88 93 Other current assets 238 210 Total current assets $4,054 $3,217 Total current liabilities $2,014 $1,601 For the year, net sales were $8,258 and cost of goods sold was $5,328 (in millions). Compute the four liquidity ratios at the end of the year. (Round all answers to 1 decimal place, e.g. 1.6 .) Current ratio :1 Acid-test ratio :1 Receivables turnover times Inventory turnover Problem 14-1A (Part Level Submission) Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All balance sheet data are as of December 31, 2014, and December 31, 2013. Lionel Company Barrymore Company 2014 2013 2014 2013 Net sales $1,509,706 $339,474 Cost of goods sold 1,002,183 237,126 Operating expenses 278,049 77,219 Interest expense 7,320 2,780 Income tax expense 61,255 7,030 Current assets 408,362 $386,462 85,695 $ 82,904 Plant assets (net) 596,373 576,250 142,760 126,031 Current liabilities 64,398 75,647 19,475 12,593 Long-term liabilities 101,945 83,788 16,494 10,148 Common stock, $5 par 578,000 578,000 131,000 131,000 Retained earnings 260,392 225,277 61,486 55,194 (a) Prepare a vertical analysis of the 2014 income statement data for Lionel Company and Barrymore Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement For the Year Ended December 31, 2014 Lionel Company Barrymore Company Dollars Percent Dollars Percent Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues $ % $ % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues % % Cost of Goods SoldDividendsExpensesGross ProfitIncome Before Income TaxesIncome From OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Net SalesOperating ExpensesOther Expenses and LossesRevenuesTotal ExpensesTotal Revenues $ % $ %