AA 19% ezto.mheducation.com A CHEM300A group 10 goo... SurveyMonkey Dashboard ENT402 - TEAM 8 Survey x M Question 5 - Connect Ass... G Handout 6 - SOLUTION -... Activity-Based Costing Connect Assignment #5 i Saved Help Save & Exit Submit 5 You have just been hired as a loan officer at Westmount Bank. Your supervisor has given you a file containing a request from Hill Company, a manufacturer of computer components, for a $2,100,000 five-year loan. Financial statement data on the company for the past two years are given below: HILL COMPANY 10 Comparative Balance Sheet points Assets This Year Last Year Current assets : 00:55:15 Cash $ 252, 000 $ 318, 600 Temporary investments 0 79 , 000 Accounts receivable, net 711, 000 474, 000 Inventory 1, 027, 000 532, 000 Prepaid expenses 63, 000 47 , 000 Print Total current assets 2 , 053 , 000 1, 551, 000 Plant and equipment, net 2, 428, 000 2, 334, 000 Total assets $4, 481, 000 $3, 885, 000 Liabilities and Shareholders' Equity Liabilities: Current liabilities $1, 023, 520 $ 705, 000 Bonds payable, 10% 936 , 000 180, 000 Total liabilities 1, 959, 520 1, 485, 000 Shareholders' equity: Preferred shares, 20,000, $3.40 no par value 500, 000 500, 000 Common shares, 50, 000 1, 600, 000 1, 600, 000 Retained earnings 421, 480 300 , 000 Total shareholders equity 2 , 521 , 480 2 , 400 , 000 Total liabilities and shareholders' equity $4, 481, 000 $3, 885, 000 HILL COMPANY Comparative Income Statement and Reconciliation of Retained Earnings This Year Last Year Sales (all on account) $4, 037, 500 $3, 220, 000 Cost of goods sold 3, 230, 000 2, 554, 000 807, 500 666, 000 Gross margin Selling and administrative expenses 407, 500 103, 000 400, 000 263, 000 Operating income 93 , 600 78, 000 Interest expense 306, 400 185, 000 Net income before taxes 91, 920 55, 500 Income taxes (30%) Mc Mc raw HillENT402 - TEAM 8 Survey x M Question 5 - Connect Ass... G Handout 6 - SOLUTION -... Connect Assignment #5 i Activity-Base Saved Help Save & Exit Times interest earned ratio Submit Price-earnings ratio 5.7 5 10 Required: 1. For both this year and last year, present the balance sheet in common-size format. (Round your answers to 1 decimal place.) O oints HILL COMPANY Comparative Balance Sheet X 00:54:18 This Year Last Year Assets Current assets: Cash % % Print Temporary investments Accounts receivable, net Inventory Prepaid expenses Total current assets 0.0 0.0 Plant and equipment, net Total assets 0.0 % 0.0 % Liabilities and Shareholders' Equity Liabilities: Current liabilities % % Bonds payable, 10% Total liabilities 0.0 0.0 Shareholders' equity: Preferred shares, 20,000, $2.40 no par value. Common shares, 50,000 Retained earnings 0 Total shareholders' equity 0 0.0 % 0.0 % Total liabilities and shareholders' equityShareholders' equity: Preferred shares, 20,000, $2.40 no par value. Common shares, 50,000 Retained earnings Total shareholders' equity 0 Total liabilities and shareholders' equity 0.0 % 0.0 % 00:54:07 Print 2. For both this year and last year, present the income statement in common-size format down through net income. (Round your answers to 1 decimal place.) HILL COMPANY Comparative Income Statement This Year Last Year Sales % % Cost of goods sold Gross margin 0.0 0.0 Selling and administrative expenses Operating income 0.0 0.0 Interest expense Net income before taxes 0.0 0.0 Income taxes (30%) Net income 0.0 % 0.0 % 3. This part of the question is not part of your Connect assignment