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I need help with vertical analysis and a couple other problems. I am not sure what I am doing wrong I have the formulas so
I need help with vertical analysis and a couple other problems. I am not sure what I am doing wrong I have the formulas so I must be using the wrong data and for the others I must be using the wrong titles.
Problem 18-1A Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016. Farris Company 2017 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings Ratzlaff Company 2016 2017 $1,530,000 $339,600 1,030,000 241,000 302,800 79,500 9,000 2,900 54,000 6,000 326,500 $310,300 2016 83,200 $78,000 519,000 499,100 139,200 125,700 65,000 75,600 36,200 29,600 107,600 89,800 28,800 24,400 505,000 505,000 116,000 116,000 167,900 139,000 41,400 33,700 Prepare a vertical analysis of the 2017 income statement data for Farris Company and Ratzlaff Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement For the Year Ended December 31, 2017 Farris Company Dollars Percent Ratzlaff Company Dollars Percent $ Net Sales Cost of Goods Sold $ 100 1530000 100 % 32.7 1030000 339600 % 29 241000 % % % % % % % % % % % % % % Other Expenses and Losses Income Before Income Taxes Income Tax Expense $ $ Net Income / (Loss) % % Compute the return on assets and the return on common stockholders' equity ratios for both companies. (Round answers to 1 decimal place, e.g. 12.1%.) Farris Company Ratzlaff Company Return on assets % % Return on common stockholders' equity % % Problem 18-2A The comparative statements of Painter Tool Company are presented below. PAINTER TOOL COMPANY Income Statement For the Years Ended December 31 2017 2016 Net sales Cost of goods sold $1,816,900 $1,754,300 1,012,500 990,000 Gross profit Selling and administrative expenses 804,400 764,300 517,400 478,800 Income from operations 287,000 285,500 17,500 13,000 269,500 272,500 81,400 77,800 $ 188,100 $ 194,700 Other expenses and losses Interest expense Income before income taxes Income tax expense Net income Assets PAINTER TOOL COMPANY Balance Sheets December 31 2017 2016 Current assets Cash Short-term investments $59,700 $65,000 68,400 50,600 Accounts receivable (net) 116,200 101,300 Inventory 123,700 115,500 368,000 332,400 595,100 522,700 $963,100 $855,100 $159,000 $144,400 43,200 41,500 202,200 185,900 195,300 195,300 397,500 381,200 Common stock ($5 par) 284,600 304,300 Retained earnings 281,000 169,600 565,600 473,900 $963,100 $855,100 Total current assets Plant assets (net) Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity All sales were on account. Compute the following ratios for 2017. (Weighted-average common shares in 2017 were 58,700.) (Round Earnings per share, Current ratio and Acid-test ratio to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.) $ (a) Earnings per share (b) Return on common stockholders' equity % (c) Return on assets % (d) Current ratio :1 (e) Acid-test ratio (f) :1 Accounts receivable turnover times (g) Inventory turnover times (h) Times interest earned times (i) Asset turnover times (j) Debt to assets ratio % Problem 18-1A Comparative statement data for Farris Company and Ratzlaff Company, two competitors, appear below. All balance sheet data are as of December 31, 2017, and December 31, 2016. Farris Company 2017 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings 2016 Ratzlaff Company 2017 $1,530,000 $339,600 1,030,000 241,000 302,800 79,500 9,000 2,900 54,000 6,000 326,500 $310,300 2016 83,200 $78,000 519,000 499,100 139,200 125,700 65,000 75,600 36,200 29,600 107,600 89,800 28,800 24,400 505,000 505,000 116,000 116,000 167,900 139,000 41,400 33,700 Prepare a vertical analysis of the 2017 income statement data for Farris Company and Ratzlaff Company in columnar form. (Round percentages to 1 decimal place, e.g. 12.1%.) Condensed Income Statement For the Year Ended December 31, 2017 Farris Company Dollars Ratzlaff Company Percent Dollars $ Net Sales Cost of Goods Sold $ 100 1530000 1030000 Percent 100 % 32.7 339600 241000 % 29 % % % % % % % % % % % % Other Expenses and Losses Income Before Income Taxes Income Tax Expense % $ % $ Net Income / (Loss) % %Step by Step Solution
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