Please help with my accounting homework. All I have is 9 dollars of credit.If I have more, I would give more.

3/27/2016 CengageNOWv2 | Online teaching and learning resource from Cengage Learning 1. Pr.151.Algo eBook Show Me How Horizontal analysis of income statement Instructions For 2016, Clapton Company reported a decline in net income. At the end of the year, S. Hand, the president, is presented with the following condensed comparative income statement: Clapton Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 1 2 Sales 3 Cost of goods sold 4 5 6 Administrative expenses 7 8 9 Other income 10 Income before income tax 11 2016 Income tax expense 12 2015 $7,369,600.00 $6,580,000.00 2,719,733.00 2,193,333.00 Gross profit $4,649,867.00 $4,386,667.00 Selling expenses $1,049,600.00 $820,000.00 658,050.00 535,000.00 Total operating expenses $1,707,650.00 $1,355,000.00 Income from operations $2,942,217.00 $3,031,667.00 132,000.00 120,000.00 $3,074,217.00 $3,151,667.00 47,600.00 Net income 40,000.00 $3,026,617.00 $3,111,667.00 Required: 1. Prepare a comparative income statement with horizontal analysis for the twoyear period, using 2015 as the base year. Use the minus sign to indicate an amount or percent decrease. If required, round percentages to one decimal place. 2. To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis. Income Statement Prepare a comparative income statement with horizontal analysis for the twoyear period, using 2015 as the base year. Use the minus sign to indicate an amount or percent decrease. If required, round percentages to one decimal place. Clapton Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 1 2 3 Sales 4 Cost of goods sold 5 6 7 Administrative expenses 8 9 2016 2015 $7,369,600.00 $4,649,867.00 $1,049,600.00 $820,000.00 658,050.00 535,000.00 Total operating expenses $1,707,650.00 $1,355,000.00 Income from operations $2,942,217.00 Percent $4,386,667.00 Selling expenses Amount 2,193,333.00 Gross profit Increase (Decrease) $6,580,000.00 2,719,733.00 Increase (Decrease) $3,031,667.00 http://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentId=98278 1/5 3/27/2016 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Income from operations 9 $3,026,617.00 Net income 40,000.00 $3,111,667.00 Income tax expense 13 $3,151,667.00 47,600.00 12 120,000.00 $3,074,217.00 Income before income tax $3,031,667.00 Other income 11 $2,942,217.00 132,000.00 10 Final Question To the extent the data permit, comment on the significant relationships revealed by the horizontal analysis. Net income has by a from 2015 to 2016. Sales have however, the cost of goods sold has percentage, causing the gross profit to at a slower pace than sales. 2. Pr.152.Algo eBook Vertical analysis of income statement Instructions For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Indigo Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 1 2015 $940,000.00 $540,000.00 338,400.00 205,200.00 Gross profit $601,600.00 $334,800.00 5 Selling expenses $159,800.00 $81,000.00 6 Administrative expenses 47,000.00 37,800.00 7 Total operating expenses $206,800.00 $118,800.00 8 Income from operations $394,800.00 $216,000.00 75,200.00 43,200.00 $470,000.00 $259,200.00 235,000.00 135,000.00 $235,000.00 $124,200.00 2 Sales 2016 3 Cost of goods sold 4 9 Other income 10 Income before income tax 11 Income tax expense 12 Net income Required: 1. Prepare a comparative income statement for the twoyear period, presenting an analysis of each item in relationship to sales for each of the years. Round your percentages to one decimal place. Enter all amounts as positive numbers. 2. To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1). http://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentId=98278 2/5 3/27/2016 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Income Statement 1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers. Indigo Company Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2 3 6 7 9 10 Percent Amount Percent Income before income tax 12 Amount Other income 11 2015 Administrative expenses 8 2015 Cost of goods sold 5 2016 Sales 4 2016 1 Income tax expense 13 $940,000.00 $540,000.00 338,400.00 205,200.00 Gross profit $601,600.00 $334,800.00 Selling expenses $159,800.00 $81,000.00 47,000.00 37,800.00 Total operating expenses $206,800.00 $118,800.00 Income from operations $394,800.00 $216,000.00 75,200.00 43,200.00 $470,000.00 $259,200.00 235,000.00 Net income 135,000.00 $235,000.00 $124,200.00 Final Question 2. Comment on the significant relationships revealed by the vertical analysis prepared in (1). The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales by 2 percentage points. The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the than made up for by cost was more sales. 3. PR.154.ALGO eBook Nineteen Measures of Solvency and Profitability The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $59 on December 31, 2016. Blige Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2016 and 2015 2016 Retained earnings, January 1 Add net income for year 2015 $4,143,200 $3,521,200 972,800 721,200 http://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentId=98278 3/5 3/27/2016 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Total $5,116,000 $4,242,400 Deduct dividends On preferred stock $11,900 $11,900 On common stock 87,300 87,300 $99,200 $99,200 $5,016,800 $4,143,200 Total Retained earnings, December 31 Blige Inc. Comparative Income Statement For the Years Ended December 31, 2016 and 2015 2016 Sales 2015 $4,997,620 $4,597,800 24,860 16,160 $4,972,760 $4,581,640 1,971,000 1,813,320 $3,001,760 $2,768,320 $881,460 $1,149,000 750,880 674,810 Sales returns and allowances Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses 1,632,340 1,823,810 $1,369,420 Income from operations $944,510 Other income 72,080 Other expense (interest) 60,290 $1,441,500 $1,004,800 336,000 $820,000 132,700 Net income 184,800 98,800 $972,800 Income tax expense $1,105,500 Income before income tax $721,200 Blige Inc. Comparative Balance Sheet December 31, 2016 and 2015 Dec. 31, 2016 Dec. 31, 2015 Assets Current assets Cash $909,850 $1,034,400 1,377,070 1,714,150 Accounts receivable (net) 985,500 927,100 Inventories 744,600 569,400 Prepaid expenses 172,132 206,880 Total current assets $4,189,152 $4,451,930 Longterm investments 2,657,088 1,492,432 Property, plant, and equipment (net) 5,460,000 4,914,000 $12,306,240 $10,858,362 $1,269,440 $2,585,162 $1,890,000 $0 2,310,000 2,310,000 Total longterm liabilities $4,200,000 $2,310,000 Total liabilities $5,469,440 $4,895,162 $850,000 $850,000 970,000 970,000 Temporary investments Total assets Liabilities Current liabilities Longterm liabilities Mortgage note payable, 8%, due 2021 Bonds payable, 8%, due 2017 Stockholders' Equity Preferred $0.7 stock, $50 par Common stock, $10 par http://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentId=98278 4/5 3/27/2016 CengageNOWv2 | Online teaching and learning resource from Cengage Learning Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5,016,800 4,143,200 $6,836,800 $5,963,200 $12,306,240 $10,858,362 Required: Determine the following measures for 2016, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital $ 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover 7. Number of days' sales in inventory days 8. Ratio of fixed assets to longterm liabilities 9. Ratio of liabilities to stockholders' equity 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets % 14. Rate earned on stockholders' equity % 15. Rate earned on common stockholders' equity % 16. Earnings per share on common stock $ 17. Priceearnings ratio 18. Dividends per share of common stock 19. Dividend yield $ % http://v2.cengagenow.com/ilrn/takeAssignment/printUntakenAssignment.do?assignmentId=98278 5/5