I have attached 5 questions. Thanks! :)
A. A comparative balance sheet for kenneth Corporation is presented below: Kenneth Corporation Comparative Balance Sheets Assets 2011 2010 Cash $36,000 $31,000 Accounts receivables 80,000 60,000 Prepaid Insurance 25,000 17,000 Land 18,000 40,000 Equipment 70,000 60,000 Accum Depreciation (20,000) (13,000) 209,000 195,000 $11,000 $ 6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 31,000 55,000 209,000 195,000 Total Assets Liabilities and Stockholders' Equity Accounts payable Total Liab. And SE equity > Additional information: 1. Net loss for 2011 is $15,000. 2. Cash dividends of $9,000 were declared and paid in 2011. 3. Land was sold for cash at a loss of $7,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. Depreciation expense was 17000 5. $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was $25,000. Instructions Prepare a statement of cash flows for the year ended 2011, using the indirect method B. Using the data presented for Ruez Company, prepare a schedule showing a vertical analysis for 2010 and 2011. 2010 2011 Net sales 350,000 320,000 Cost of goods sold 200,000 180,000 Gross profit 150,000 140,000 Operating expenses 120,000 100,000 30,000 40,000 Net Income C. The financial statements of Hampton Company appear below: Hampton Company Comparative Balance Sheet December 31, ASSETS 2009 2008 $ 35,000 $ 40,000 Short-term investments 15,000 60,000 Accounts receivables 50,000 30,000 Inventory 50,000 70,000 250,000 300,000 400,000 500,000 Accounts payable 10,000 30,000 Short-term notes payable 40,000 90,000 Bonds payable 88,000 160,000 Cash Property, plant & equip (net) Total assets LIAB & Stockholders Equity Common stock 160,000 145,000 Retained earnings 102,000 75,000 Total Liab & SE 400,000 500,000 Hampton Company Income Statement For the year ended December 31, 2009 Net Sales 360,000 Cost of Goods Sold 198,000 Gross Profit 162,000 Expenses Interest Expense 12,000 Selling Expense 40,000 Admin. Expense 59,000 Total Expense 111,000 Income before income taxes 51,000 Income tax expense 15,000 Net Income 36,000 Additional Information: a. Cash dividends of $9,000 were declared and paid in 2009. b. Weighted Average number of shares of common stock outstanding during 2008 was 30,000 shares. c. Market value of common stock on December 31,2009 was $21 per share. Instructions Using the financial statements and additional information, compute the following ratios for Hampton Company for 2009. Show all computations. 1. Current ratio: _________________ 2. Return on Common stockholders equity__________________ 3. Price-earnings ratio _______________ 4. Acid-test ratio _______________ 5. Receivables turnover ______________ 6. TImes interest earned ______________ 7. Profit margin __________---- 8. Days in inventory ______________ 9. Payout ratio ______________ 10. Return on assets ___________ D. Horizontal and vertical analyses are analytical tools frequently used to analyze financial statements. What type of information or insights can be obtained by using these two techniques? Explain how the output of horizontal analysis and vertical analysis can be compared to industry averages and/or competitive companies. E. The following items were taken from the financial statements of Horace, Inc., over a three-year period: Item 2009 200 8 2007 Net sales 355,000 336,000 300,000 CGS 214,000 206,000 186,000 Gross profit 141,000 130,000 114,000 > Instructions Compute the following for each of the above time periods. a. The amount and percentage change from 2007 to 2008. b. The amount and percentage change from 2008 to 2009
