> = = = = Goldey-Beacom College ACC207 Principles of Accounting Il Assignment #2 (CH13) Instructions: Please round your percentage to one place after the decimal: (Hint: .432 = 43.2%) 1. Prepare the horizontal and vertical analysis for the following: a. Horizontal Analysis Increase (decrease) 2021 2020 Amount Percentage Assets: Current Assets 8.821 8,076 PPE, net 1,891 1,678 Other Assets 1.731 934 Total Assets 12,443 10,688 Liabilities & Stockholders' Equity Current Liabilities 3,321 2,584 Long-term liabilities 1.297 1,079 Stockholders' equity 7,825 Z025 Total Liabilities & Stockholders' equity 12,443 10,688 b. Vertical Analysis 2021 % Assets: Current Assets PPE, net Other Assets Total Assets Labilities & Stockholders' Equity: Current Lates Long-term limbiities Stockholders equity Total Liabilities & Stockholders equity 8,821 1,891 12/31 12443 3,321 1.297 7825 12:443 2. Selected financial data of two companies are presented below: Snow Rain Company Company Income Statement Data: Net Sales Cost of goods sold Selling and administrative expense Interest Expense Other Income (expense) Income tax expense Net Income 1,356.0 776.3 380.6 0.1 9.0 63.6 144.4 1,436.5 771.7 605.5 0.1 .5 19.7 40.0 Balance Sheet Data (end of year balances) Current Assets Noncurrent Assets Total Assets Current liabilities Long-term debt Total stockholders equity Total liabilities and stockholders equity 885.7 280.8 1616675 166.5 29.9 970.1 1166,5 6172 219/1 863 218.0 41.1 5772 86 Beginning of year balances: Total assets Total stockholders' equity Current liabilities Total liabilities 1,027.3 830.7 187.9 196.6 860.4 561.7 285.6 298.7 Other Data: Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends 293.2 239.1 124.5 34.3 20.9 196.1 194.3 38.6 30.5 -0- 2 Compute the following ratios for each company. You must show all work to get full credit for this problem! Please round your answer to one place after the decimal. Snow Company Rain Company 1. Current ratio 2. Accounts receivable turnover 3. Average collection period 4. Inventory turnover 5. Days in inventory 6. Profit margin 7. Asset turnover 8. Return on assets 9. Return on common stock equity 10. Debt to assets ratio 11. Times interest earned 12. Current cash debt coverage 13. Cash debt coverage 14. Free cash flow a. Comment on the liquidity, solvency and profitability of each company