MANAGERIAL ACCOUNTING HANDOUT PROBLEM 15 Score Name Section Problem (10 points) The condensed financial statements of Marimba Company are attached. REQUIRED: () Prepare a vertical analysis on the income statement forall three years. Round all percentages to two decimal places (four decimal places total). Prepare a horizontal analysis on the balance sheet for 20x2 and 20XI Round all percentages to two decimal places (four decimal places total) Compute the following ratios for 20XI and 20X2. Round all percentages to two decimal places (four decimal places total) and all other amounts to two decimal places. (2) (3) Current Ratio. (a) (b) Profit Margin Ratio. Return on Total Assets Return on Stockholders' Equity. Earnings Per Share. Book Value Per Share. (c) (d) (e) (f) (g) Debt to Equity Ratio. MARIMBA cOMPANY COMPARATIVE INCOME STATEMENTS (IN THOUSANDS) FOR YEARS ENDED DECEMBER 31, 20X0, 20X1, AND 20X2 20X2 20X1 20X0 74,000 S Sales 68,000 S S 59,000 Cost of Goods Sold 45,658 40,052 33,866 Gross Margin From Sales 28,342 27,948 25,134 Operating Expenses: Selling Expenses 12,306 11,506 10,095 8,262 Administrative Expenses 8,658 7,304 Total Expenses 20,964 19,768 17,399 Income Before Taxes 7,378 7,735 8,180 Income Tax Expense Net Income 2,140 2,372 2,243 5,808 S 5,238 S S 5,492 MARIMBA COMPANY COMPARATIVE BALANCE SHEETS (IN THOUSANDS) AT DECEMBER 31, 20X0, 20Xi, AND 20X2 20x2 20X1 20X0 ASSETS 12,780 S Current Assets S 11,940 S 14,140 Long Term Investments 0 100 930 Plant and Equipment 19,150 20,000 16,250 TOTAL ASSETS 31,930 S 32,040 S 31,320 LIABILITIES AND STOCKHOLDERS' EQUITY 5,050 S Current Liabilities 4,990 S 4,870 Common Stock, $10 par 13,500 13,500 13,390 Other Contributed Capital 1,850 1,850 1,460 Retained Earnings TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 11,530 11,700 11,600 31,930 S 32,040 S S 31,320