Here are the comparative income statements of Riverbed Corp. RIVERBED CORP Comparative Income Statement For the Years Ended December 31 2020 2019 Net sales $564,000 $470,000 Cost of goods sold 437,100 386,810 Gross Profit 126,900 83,190 Operating expenses 75,012 42,770 Net income $ 51,888 $ 40,420
Exercise 13-06 a-b Here are the comparative income statements of Riverbed Corp. RIVERBED CORP Comparative Income Statement For the Years Ended December 31 Net sales Cost of goods sold Gross Profit Operating expenses Net income 2020 $564,000 437,100 126,900 75,012 $ 51,888 2019 $470,000 386,810 83,190 42,770 $ 40,420 (a) Prepare a horizontal analysis of the income statement data for Riverbed Corp, using 2019 as a RIVERBED CORP Comparative Income Statement Increase or (Decrease) During 2020 Amount Percentage 2020 2019 Net sales 5564,000 5470,000 % $ Cost of goods sold 437,100 386,810 %6 Gross Profit 126,900 83,190 90 Operating expenses 75,012 42,770 Net income $ 51,888 $ 40,420 % (b) Prepare a vertical analysis of the income statement data for Riverbed Corp for both years. (Ro RIVERBED CORP Condensed Income Statements 2020 2019 $ Percent $ Percent Net sales 5564,000 % S470,000 % Cost of goods sold 437,100 % 386.810 % Gross Profit 126.900 83,190 % Operating expenses 75,012 % 42,770 % Net income $ 51,888 % $ 40,420 % Click if you would like to Show Work for this question: Open Show Work Exercise 13-09 Blossom Company has these comparative balance sheet data: BLOSSOM COMPANY Balance Sheets December 31 2020 Cash $ 36,060 Accounts receivable (net) 168,280 Inventory 144,240 Plant assets (net) 480,800 5829,380 Accounts payable $ 120,200 Mortgage payable (15%) 240,400 Common stock, $10 par 336,560 Retained earnings 132,220 5829,380 2019 $ 72,120 144,240 120,200 432,720 $769,280 $ 144,240 240,400 288,480 96,160 $769,280 Additional information for 2020: 1. Net income was $27,800. 2. Sales on account were $380,600. Sales returns and allowances amounted to $25,800. 3. Cost of goods sold was $213,300. 4. Net cash provided by operating activities was 558,300. 5. Capital expenditures were $27,300, and cash dividends were $21,900. Compute the following ratios at December 31, 2020. (Round current ratio and inventory turno :1 (a) Current ratio (b) Accounts receivable turnover. (c) Average collection period. times days (d) Inventory turnover. times (e) Days in inventory. days (f) Free cash flow. Click if you would like to Show Work for this question: Open Show Work
