Can you help me with my homework?

But I only need the tasks 5,6,7 and 8.

The tasks 1-3 serve only as an information base for the above tasks.

EXERCISE 1-1 Discretion in Comparative Financial Statement Analysis Express the following income statement information in common-size percents and assess whether this company's situation is favorable or unfavorable. The preparation and analysis of comparative balance sheets and income statements are commonly applied tools of financial statement analysis and interpretation. Required: a. Discuss the inherent limitations of analyzing and interpreting financial statements for a single year. Include in your discussion the extent that these limitations are overcome by use of comparative financial statements com- puted over more than one year. b. A year-to-year analysis of comparative balance sheets and income statements is a useful analysis tool. Still, without proper care, such analysis can be misleading. Discuss factors or conditions that contribute to such a possibility. How can additional information and supplementary data (beyond financial statements) help prevent this possibility? EXERCISE 1-5 Evaluating Short-Term Liquidity HARBISON CORPORATION Comparative Income Statement For Years Ended December 31, 2006 and 2005 Cash Accounts receivable, net EXERCISE 1-6 Evaluating Risk and Capital Structure 2006 Sales $720.000 Cost of goods sold... 475,200 Mixon Company's year-end balance sheets show the following: Merchandise inventory. Prepaid expenses....... Plant assets, net Total assets. EXERCISE 1-7 Evaluating Efficiency and Profitability Gross profit.... 244,800 Operating expenses 151,200 Net income............ $ 93,600 Accounts payable Long-term notes payable secured EXERCISE 1-8 Evaluating Profitability 2005 $535,000 280,340 2006 $ 30,800 254,660 103,790 $150,870 by mortgages on plant assets .. Common stock, $10 par value.. Retained earnings.... Total liabilities and equity..... $518,000 $445,000 2005 $ 35,625 88.500 62,500 111,500 82,500 9,700 9,375 277,500 255,000 $518,000 $445,000 $128,900 $ 75,250 97,500 102,500 162,500 162,500 129.100 104,750 Required Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratio results. 2004 $36,800 49,200 53,000 4,000 229,500 $372,500 $ 49,250 82,500 162,500 78,250 $372,500 Sales Cost of goods sold Other operating expenses Interest expense Income taxes... Total costs and expenses Net income Earnings per share Refer to the information in Exercise 1-3 about Mixon Company. The company's income state- ments for the years ended December 31, 2006 and 2005 show the following: 2006 $410,225 208,550 11,100 8,525 $672,500 (638.400) $ 34,100 $ 2.10 EXERCISE 1-2 Computing Common-Size Percents EXERCISE 1-3 Evaluating Short-Term Liquidity 2005 $344,500 133,980 12,300 7,845 Common stock market price, December 31, 2006 Common stock market price, December 31, 2005 Required: For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (8) accounts receivable turnover, (c) inventory turnover, and (d) days' sales in inventory. Comment on the changes in the ratios from 2005 to 2006. $530,000 Refer to the information in Exercises 1-3 and 1-5 about Mixon Company. Compare the long-term risk and capital structure positions of the company at the end of 2006 and 2005 by computing the following ratios: (a) total debt ratio and (6) times interest earned. Comment on these ratio results. (498.625) $ 31,375 $1.93 Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. Evaluate the effi- ciency and profitability of the company by computing the following: (a) net profit margin, (b) total asset turnover, and (c) return on total assets. Comment on these ratio results. Annual cash dividends per share in 2006. Annual cash dividends per share in 2005 ...... Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. The following additional information about the company is known: $15.00 14.00 0.60 0.30 To help evaluate the profitability of the company, compute the following for 2006 and 2005: (a) return on common stockholders' equity, (b) price-earnings ratio on December 31, and (c) divi- dend yield. EXERCISE 1-1 Discretion in Comparative Financial Statement Analysis Express the following income statement information in common-size percents and assess whether this company's situation is favorable or unfavorable. The preparation and analysis of comparative balance sheets and income statements are commonly applied tools of financial statement analysis and interpretation. Required: a. Discuss the inherent limitations of analyzing and interpreting financial statements for a single year. Include in your discussion the extent that these limitations are overcome by use of comparative financial statements com- puted over more than one year. b. A year-to-year analysis of comparative balance sheets and income statements is a useful analysis tool. Still, without proper care, such analysis can be misleading. Discuss factors or conditions that contribute to such a possibility. How can additional information and supplementary data (beyond financial statements) help prevent this possibility? EXERCISE 1-5 Evaluating Short-Term Liquidity HARBISON CORPORATION Comparative Income Statement For Years Ended December 31, 2006 and 2005 Cash Accounts receivable, net EXERCISE 1-6 Evaluating Risk and Capital Structure 2006 Sales $720.000 Cost of goods sold... 475,200 Mixon Company's year-end balance sheets show the following: Merchandise inventory. Prepaid expenses....... Plant assets, net Total assets. EXERCISE 1-7 Evaluating Efficiency and Profitability Gross profit.... 244,800 Operating expenses 151,200 Net income............ $ 93,600 Accounts payable Long-term notes payable secured EXERCISE 1-8 Evaluating Profitability 2005 $535,000 280,340 2006 $ 30,800 254,660 103,790 $150,870 by mortgages on plant assets .. Common stock, $10 par value.. Retained earnings.... Total liabilities and equity..... $518,000 $445,000 2005 $ 35,625 88.500 62,500 111,500 82,500 9,700 9,375 277,500 255,000 $518,000 $445,000 $128,900 $ 75,250 97,500 102,500 162,500 162,500 129.100 104,750 Required Compare the year-end short-term liquidity position of this company at the end of 2006, 2005, and 2004 by computing the: (a) current ratio and (b) acid-test ratio. Comment on the ratio results. 2004 $36,800 49,200 53,000 4,000 229,500 $372,500 $ 49,250 82,500 162,500 78,250 $372,500 Sales Cost of goods sold Other operating expenses Interest expense Income taxes... Total costs and expenses Net income Earnings per share Refer to the information in Exercise 1-3 about Mixon Company. The company's income state- ments for the years ended December 31, 2006 and 2005 show the following: 2006 $410,225 208,550 11,100 8,525 $672,500 (638.400) $ 34,100 $ 2.10 EXERCISE 1-2 Computing Common-Size Percents EXERCISE 1-3 Evaluating Short-Term Liquidity 2005 $344,500 133,980 12,300 7,845 Common stock market price, December 31, 2006 Common stock market price, December 31, 2005 Required: For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (8) accounts receivable turnover, (c) inventory turnover, and (d) days' sales in inventory. Comment on the changes in the ratios from 2005 to 2006. $530,000 Refer to the information in Exercises 1-3 and 1-5 about Mixon Company. Compare the long-term risk and capital structure positions of the company at the end of 2006 and 2005 by computing the following ratios: (a) total debt ratio and (6) times interest earned. Comment on these ratio results. (498.625) $ 31,375 $1.93 Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. Evaluate the effi- ciency and profitability of the company by computing the following: (a) net profit margin, (b) total asset turnover, and (c) return on total assets. Comment on these ratio results. Annual cash dividends per share in 2006. Annual cash dividends per share in 2005 ...... Refer to the financial statements of Mixon Company in Exercises 1-3 and 1-5. The following additional information about the company is known: $15.00 14.00 0.60 0.30 To help evaluate the profitability of the company, compute the following for 2006 and 2005: (a) return on common stockholders' equity, (b) price-earnings ratio on December 31, and (c) divi- dend yield