BEC D E FL Using the information provided below for Connie Jo Company, Inc., prepare the following: (1) Prepare a Horizontal Analysis in the space indicated below. (2) Prepare a Vertical Analysis in the space indicated below. Year 2 Year 1 (3) Prepare the following ratios: Current Ratio Accounts Receivable Turnover Ratio Ratio of Fixed Assets to long-term liabilities Times interest earned Asset Turnover Earnings per share (4) Comment on significant changes based upon your analysis: (5) Prepare a Statement of Cash Flows for Year 2 in good form using the template ON THE NEXT PAGE. A cash flow worksheet is included for your use but is not required The comparative financial statement information for Connie Jo Company, Inc. for the years ended December 31, Year 1 and Year 2 appear below in condensed form: Problem 36 Problem 36-Cash Flow ccessibility: Investigate A D The comparative financial statement information for Connie Jo Company, Inc. for the years ended December 31, Year 1 and Year 2 appear below in condensed form: Horizontal Analysis Amount Percent Vertical Analysis Year 2 Year 1 Year 2 45,000 51,300 147,200 Cash Accounts receivable (net) Inventories Trading investments Equipment Accumulated depreciation equipment Total assets Year 1 53,500 58,000 135,000 60,000 375,000 _(128,000) 553,500 493,000 (113,700) 622.800 61,500 Accounts payable Bonds payable, due Year 4 Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholder's equity 250,000 75,000 236 300 622.800 42,600 100,000 200,000 50,000 160.900 553.500 The income statements for years 1 and 2 are as follows. Sales 629 700 Cash Flow Worksheet 579 504 Problem 36 Problem 36-Cash Flow LD EL FIGH The income statements for years 1 and 2 are as follows: 629,700 341,800 287,900 579,504 278,302 301,202 24,700 75,300 100,000 187,900 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other operating expenses Total operating expenses Income from operations Other income Gain on sale of investment Other expense Interest expense Total other incomel expense: Income before income tax Income tax Net income 23,500 69,208 92,708 208,494 5,000 (12,000) (7 000) 180,900 64.100 116.800 (21,750) (21.750) 186,744 65,360 121384 Additional data for the current year are as follows: (a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000 Problem 36 Problem 36-Cash Flow Cash Flow Worksheet AccessibilityInvestigate Income before income tax Income tax Net income 180,900 64,100 116.800 186,744 65,360 121.384. Additional data for the current year are as follows: (a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000. (b) Bonds payable for $100,000 were retired by payment at their face amount. (c) 5,000 shares of common stock were issued at $15 for cash. (d) Cash dividends declared were paid $41,400 (e) All sales are on account. Problem 36 Problem 36-Cash Flow Cash Flow Worksheet 4 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: 7 13 Net cash flow from operating activities 14 Cash flows from investing activities: 16 Net cash flow used for investing activities 18 Cash flows from financing activities: Net cash flow used for financing activities 23 Change in cash 24 Cash at the beginning of the year 25 Cash at the end of the year Problem 36 Problem 36-Cash Flow Cash Flow Wor Accessibility Investigate I c I D E F G H 1 Name] 2 t of Cash Flows Worksheet 3 ed] Update for the accounts Accur Accounts receivable (net) depr Cash Inventories Investments Equipment equipm 5 Balance Prior year 6 Balance Current year 7 Change . 9 activities: 16 ctivities: 17 19 activities 20 23 e Problem 36 Problem 36-Cash Flow Cash Flow Worksheet Accessibility: Investigate or the accounts and balances in your problem Accum depr.- equipment Paid in capital in excess of Common stock, $10 Accounts payable ment Bonds payable Sum (must be zero) Retained earnings par BEC D E FL Using the information provided below for Connie Jo Company, Inc., prepare the following: (1) Prepare a Horizontal Analysis in the space indicated below. (2) Prepare a Vertical Analysis in the space indicated below. Year 2 Year 1 (3) Prepare the following ratios: Current Ratio Accounts Receivable Turnover Ratio Ratio of Fixed Assets to long-term liabilities Times interest earned Asset Turnover Earnings per share (4) Comment on significant changes based upon your analysis: (5) Prepare a Statement of Cash Flows for Year 2 in good form using the template ON THE NEXT PAGE. A cash flow worksheet is included for your use but is not required The comparative financial statement information for Connie Jo Company, Inc. for the years ended December 31, Year 1 and Year 2 appear below in condensed form: Problem 36 Problem 36-Cash Flow ccessibility: Investigate A D The comparative financial statement information for Connie Jo Company, Inc. for the years ended December 31, Year 1 and Year 2 appear below in condensed form: Horizontal Analysis Amount Percent Vertical Analysis Year 2 Year 1 Year 2 45,000 51,300 147,200 Cash Accounts receivable (net) Inventories Trading investments Equipment Accumulated depreciation equipment Total assets Year 1 53,500 58,000 135,000 60,000 375,000 _(128,000) 553,500 493,000 (113,700) 622.800 61,500 Accounts payable Bonds payable, due Year 4 Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholder's equity 250,000 75,000 236 300 622.800 42,600 100,000 200,000 50,000 160.900 553.500 The income statements for years 1 and 2 are as follows. Sales 629 700 Cash Flow Worksheet 579 504 Problem 36 Problem 36-Cash Flow LD EL FIGH The income statements for years 1 and 2 are as follows: 629,700 341,800 287,900 579,504 278,302 301,202 24,700 75,300 100,000 187,900 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other operating expenses Total operating expenses Income from operations Other income Gain on sale of investment Other expense Interest expense Total other incomel expense: Income before income tax Income tax Net income 23,500 69,208 92,708 208,494 5,000 (12,000) (7 000) 180,900 64.100 116.800 (21,750) (21.750) 186,744 65,360 121384 Additional data for the current year are as follows: (a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000 Problem 36 Problem 36-Cash Flow Cash Flow Worksheet AccessibilityInvestigate Income before income tax Income tax Net income 180,900 64,100 116.800 186,744 65,360 121.384. Additional data for the current year are as follows: (a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000. (b) Bonds payable for $100,000 were retired by payment at their face amount. (c) 5,000 shares of common stock were issued at $15 for cash. (d) Cash dividends declared were paid $41,400 (e) All sales are on account. Problem 36 Problem 36-Cash Flow Cash Flow Worksheet 4 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: 7 13 Net cash flow from operating activities 14 Cash flows from investing activities: 16 Net cash flow used for investing activities 18 Cash flows from financing activities: Net cash flow used for financing activities 23 Change in cash 24 Cash at the beginning of the year 25 Cash at the end of the year Problem 36 Problem 36-Cash Flow Cash Flow Wor Accessibility Investigate I c I D E F G H 1 Name] 2 t of Cash Flows Worksheet 3 ed] Update for the accounts Accur Accounts receivable (net) depr Cash Inventories Investments Equipment equipm 5 Balance Prior year 6 Balance Current year 7 Change . 9 activities: 16 ctivities: 17 19 activities 20 23 e Problem 36 Problem 36-Cash Flow Cash Flow Worksheet Accessibility: Investigate or the accounts and balances in your problem Accum depr.- equipment Paid in capital in excess of Common stock, $10 Accounts payable ment Bonds payable Sum (must be zero) Retained earnings par