Hi there,

Attached are two documents for financial accounting. the first document has 5 questions, while the second document has 4.

Thank you!

\fChapter Thirteen 4 Problems Problem 1 10 points(5 for a, 2.5 for b & 2.5 for c) Financial information for Nealon Inc. is presented below. December 31, 2014 Current assets $140,000 Plant assets (net) 440,000 Current liabilities 95,000 Long-term liabilities 165,000 Common stock, $1 par 180,000 Retained earnings 140,000 December 31, 2013 $110,000 360,000 75,000 100,000 120,000 175,000 Instructions: (a) Prepare a schedule showing a horizontal analysis for 2014 using 2013 as the base year. (b) What is the primary use of horizontal analysis? (c) What does the schedule from part (a) tell you about Nealon? Copyright 201 John Wiley & Sons, Inc. (For Instructor Use Only) Kimmel, Financial Accounting, 7/e, Challenge Exercises Page 13-1 Problem 2 10 points(5 for a, 2.5 for b & 2.5 for c) Operating data for Poll Corporation are presented below. 2014 2013 Net sales $900,000 $700,000 Cost of goods sold 570,000 450,000 Selling expenses 140,000 90,000 Administrative expenses 80,000 60,000 Income tax expense 33,000 30,000 Net income 77,000 70,000 Instructions: (a) Prepare a schedule showing a vertical analysis for 2014 and 2013. (b) What is the primary use of vertical analysis? (c) What does the schedule from part (a) tell you about Poll? Copyright 201 John Wiley & Sons, Inc. (For Instructor Use Only) Kimmel, Financial Accounting, 7/e, Challenge Exercises Page 13-2 Problem 3 10 points(2.5 each) Selected comparative statement data for Tyrone Company are presented below. All balance sheet data are as of December 31. 2014 2013 Net sales $1,160,000 $1,120,000 Cost of goods sold 700,000 640,000 Interest expense 15,000 10,000 Net income 150,000 140,000 Accounts receivable 140,000 120,000 Inventory 100,000 95,000 Total assets 780,000 700,000 Preferred stock (6%) 200,000 200,000 Total stockholders' equity 630,000 525,000 Instructions: Compute the following ratios for 2014. (a) Profit margin. (b) Asset turnover. (c) Return on assets. (d) Return on common stockholders' equity Copyright 201 John Wiley & Sons, Inc. (For Instructor Use Only) Kimmel, Financial Accounting, 7/e, Challenge Exercises Page 13-3 Problem 4 10 points(8 points for a & 2 points for b) For its fiscal year ending October 31, 2014, Antonio Corporation reports the following partial data. Income before income taxes $600,000 Income tax expense (40% X $480,000) 192,000 Income from continuing operations 408,000 Gain from discontinued operations 100,000 Extraordinary loss from flood (220,000) Net income $288,000 The flood loss is considered an extraordinary item. The income tax rate is 40% on all items. Instructions: (a) Prepare a correct income statement, beginning with income before income taxes. (b) Explain in memo form why the income statement data are misleading. Copyright 201 John Wiley & Sons, Inc. (For Instructor Use Only) Kimmel, Financial Accounting, 7/e, Challenge Exercises Page 13-4 "Amazon vs. eBay Which Is the Cheaper Stock to Buy? http://www.forbes.com/sites/greatspeculations/2 014/12/19/amazon-vs-ebay-which-is-thecheaper-stock-to-buy/#37648ad82e31 1) Find the last 5 year's of sales for each Amazon and eBay. 2) Complete a horizontal analysis comparing the "sales" of the two companies. Show your calculations. 3) What do you think, who is preforming better? 4) What is the each company's current ratio? What does the current ratio tell you? 5) What do you think, which company stronger financially