Question
A.) The comparative accounts payable and long-term debt balances of a company are provided below. Current Year Previous Year Accounts payable $53,460 $59,400 Long-term debt
A.)
The comparative accounts payable and long-term debt balances of a company are provided below.
Current Year | Previous Year | |
Accounts payable | $53,460 | $59,400 |
Long-term debt | 65,728 | 63,200 |
Based on this information, what is the amount and percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis? Enter all answers as positive numbers.
Amount of Change | Increase/Decrease | Percentage | |
Accounts payable | $fill in the blank 1 | fill in the blank 3 % | |
Long-term debt | $fill in the blank 4 | fill in the blank 6 % |
B.)
Vertical Analysis
Income statement information for Einsworth Corporation follows:
Sales | $264,000 | |
Cost of goods sold | 81,840 | |
Gross profit | 182,160 |
Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number.
Amount | Percentage | |
Sales | $264,000 | |
Cost of goods sold | 81,840 | |
Gross profit | $182,160 |
C.)
Current Position Analysis
The following items are reported on a company's balance sheet:
Cash | $315,600 |
Marketable securities | 246,600 |
Accounts receivable (net) | 150,200 |
Inventory | 274,000 |
Accounts payable | 548,000 |
Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.
a. Current ratio | |
b. Quick ratio |
D.)
Accounts Receivable Analysis
A company reports the following:
Sales | $280,320 |
Average accounts receivable (net) | 17,520 |
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year.
a. Accounts receivable turnover | |
b. Number of days' sales in receivables | days |
E.)
Inventory Analysis
A company reports the following:
Cost of goods sold | $344,925 |
Average inventory | 76,650 |
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
a. Inventory turnover | |
b. Number of days' sales in inventory | fdays |
F.)
Return on Total Assets
A company reports the following income statement and balance sheet information for the current year:
Net income | $287,270 |
Interest expense | 50,690 |
Average total assets | 2,380,000 |
Determine the return on total assets. If required, round the answer to one decimal place. fill in the blank 1 ......%
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