Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate vertical analysis. (Round percentages to 1 decimal place, e.g. 10.5.) December 31, 2011 December 31, 2010 Accounts receivable $ 527,740 $ 388,030 Inventory $ 848,020 $ 604,280 Total assets $ 2,881,300 $2,487,900 Vertical Analysis Dec. 31, 2011 Dec. 31, 2010 Amount Percentage Amount Percentage Accounts receivable $ % $ % Inventory $ % $ % Total assets $ % $ % Click here if you would like to Show Work for this question Question 2 Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 30 $8.82 $264.60 May 15 Purchases 25 11.82 295.50 May 24 Purchases 35 12.82 448.70 Totals 90 $1,008.80 Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. (Round answers to 2 decimal places, e.g. 10.50.) FIFO LIFO Ending Inventory $ $ Cost of goods sold $ $ * Question 3 The following information pertains to Family Video Company. 1. Cash balance per bank, July 31, $9,086.01. 2. July bank service charge not recorded by the depositor $35.03. 3. Cash balance per books, July 31, $9,112.28. 4. Deposits in transit, July 31, $1,876.50. 5. Bank collected $1,125.90 note for Family in July, plus interest $45.04, less fee $25.02. The collection has not been recorded by Family, and no interest has been accrued. 6. Outstanding checks, July 31, $739.34. Prepare a bank reconciliation at July 31. (Round answers to 2 decimal places, e.g. 10.50.) $ Add: Less: Adjusted cash balance per bank $ $ Add: Less: Adjusted cash balance per books $ Journalize the adjusting entries at July 31 on the books of Family Video Company. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.Round answers to 2 decimal places, e.g. 10.50.) Date Description/Account Debit Credit July 31 (To record collection of note receivable by bank) July 31 (To record bank service charge.) Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate vertical analysis. (Round percentages to 1 decimal place, e.g. 10.5.) December 31, 2011 December 31, 2010 Accounts receivable $ 508,530 $ 382,050 Inventory $ 835,140 $ 612,000 Total assets $ 3,193,800 $2,482,400 Vertical Analysis Dec. 31, 2011 Dec. 31, 2010 Amount Percentage Amount Percentage Accounts receivable $ % $ % Inventory $ % $ % Total assets $ % $ % Catlet Co. uses a periodic inventory system. Its records show the following for the month of May in which 65 units were sold. Date Explanation Units Unit Cost Total Cost May 1 Inventory 30 $8.69 $260.70 May 15 Purchases 25 11.69 292.25 May 24 Purchases 35 12.69 444.15 Totals 90 $997.10 Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. (Round answers to 2 decimal places, e.g. 10.50.) FIFO LIFO Ending Inventory $ $ Cost of goods sold $ $ The following information pertains to Family Video Company. 1. Cash balance per bank, July 31, $9,906.73. 2. July bank service charge not recorded by the depositor $38.19. 3. Cash balance per books, July 31, $9,935.38. 4. Deposits in transit, July 31, $2,046.00. 5. Bank collected $1,227.60 note for Family in July, plus interest $49.10, less fee $27.28. The collection has not been recorded by Family, and no interest has been accrued. 6. Outstanding checks, July 31, $806.12. Prepare a bank reconciliation at July 31. (Round answers to 2 decimal places, e.g. 10.50.) $ Add: Less: Adjusted cash balance per bank $ $ Add: Less: Adjusted cash balance per books $ Journalize the adjusting entries at July 31 on the books of Family Video Company. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.Round answers to 2 decimal places, e.g. 10.50.) Date Description/Account Debit Credit July 31 (To record collection of note receivable by bank) July 31 (To record bank service charge.) Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate horizontal analysis. (If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45).) December 31, 2011 December 31, 2010 Accounts receivable $ 520,000 $ 400,000 Inventory $ 840,000 $ 600,000 Total assets $ 3,000,000 $2,500,000 Horizontal Analysis Increase or (Decrease) Dec. 31, 2011 Dec. 31, 2010 Amount Percentage Accounts receivable $ $ $ % Inventory $ $ $ % Total assets $ $ $ % BE18-4 Using the following data from the comparative balance sheet of Rodenbeck Company, illustrate vertical analysis. (Round percentages to 1 decimal place, e.g. 10.5.) December 31, 2011 December 31, 2010 Accounts receivable $ 520,000 $ 400,000 Inventory $ 840,000 $ 600,000 Total assets $ 3,000,000 $2,500,000 Vertical Analysis Dec. 31, 2011 Dec. 31, 2010 Amount Percentage Amount Percentage Accounts receivable $ % $ % Inventory $ % $ % Total assets $ % $ % Click here if you would like to Show Work for this question Horizontal analysis (trend analysis) percentages for Epstein Company's sales, cost of goods sold, and expenses are shown below. Horizontal Analysis 2011 2010 2009 Sales 96.2 106.8 100.0 Cost of goods sold 102.0 97.0 100.0 Expenses 109.6 98.4 100.0 Did Epstein's net income increase, decrease, or remain unchanged over the 3-year period? From 2009 to 2010 From 2010 to 2011 Selected condensed data taken from a recent balance sheet of Perkins Inc. are as follows. PERKINS INC. Balance Sheet (partial) Cash $ 8,041,000 Short-term investments 4,947,000 Accounts receivable 12,545,000 Inventories 14,814,000 Other current assets 5,571,000 Total current assets $45,918,000 Total current liabilities $40,644,000 What are the (a) working capital, (b) current ratio, and (c) acid-test ratio? (Round ratios to 2 decimal places, e.g. 10.50.) (a) Working capital $ (b) Current ratio : 1 (c) Acid-test ratio : 1 McLaren Corporation has net income of $11.44 million and net revenue of $80 million in 2010. Its assets are $14 million at the beginning of the year and $18 million at the end of the year. What are McLaren's (a) asset turnover and (b) profit margin? (Round answers to 1 decimal place, e.g. 10.5.) (a) Asset turnover times (b) Profit margin % The following data are from the income statements of Huntsinger Company. 2011 2010 Sales $6,420,000 $6,240,000 Beginning inventory 980,000 860,000 Purchases 4,340,000 4,661,000 Ending inventory 1,020,000 980,000 Compute for each year (1) the inventory turnover and (2) the average days to sell the inventory. (Round answers to 1 decimal place, e.g. 10.5. Use rounded answers for future calculations.) 2011 2010 (1) Inventory turnover times times (2) Average days days days The comparative condensed income statements of Hendi Corporation are shown below. HENDI CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2011 2010 Net sales $600,000 $500,000 Cost of goods sold 483,000 420,000 Gross profit 117,000 80,000 Operating expenses 57,200 44,000 Net income $ 59,800 $ 36,000 Complete the horizontal analysis of the income statement data for Hendi Corporation using 2010 as a base. (If amount is a decrease, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round percentages to 1 decimal place, e.g. 10.5.) HENDI CORPORATION Condensed Income Statements For the Years Ended December 31 Increase or (Decrease) 2011 2010 Amount Percentage Net sales $ $ $ % Cost of goods sold % Gross profit % Operating expenses % Net income $ $ $ % Complete the vertical analysis of the income statement data for Hendi Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 10.5.) HENDI CORPORATION Condensed Income Statements For the Years Ended December 31 2011 2010 Amount Percentage Amount Percentage Net sales $ % $ % Cost of goods sold % % Gross profit % % Operating expenses % % Net income $ % $ % Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending February 2, 2008, are as follows. NORDSTROM, INC. Balance Sheet (partial) (in millions) End-of-Year Beginning-of-Year Cash and cash equivalents $ 358 $ 403 Receivables (net) 1,788 684 Merchandise inventory 956 997 Prepaid expenses 78 61 Other current assets 181 597 Total current assets $3,361 $2,742 Total current liabilities $1,635 $1,433 For the year, net sales were $8,828, and cost of goods sold was $5,526 (in millions). Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 10.5.) Current ratio :1 Acid-test ratio :1 Receivables turnover times Inventory turnover times Using the data in the chapter, compare Nordstrom's liquidity with (1) that of J.C. Penney Company, and (2) the industry averages for department stores. (Round answers to 1 decimal place, e.g. 10.5.) Ratio Nordstrom J. C. Penney Industry Current :1 :1 :1 Acid-test :1 :1 :1 Receivables turnover :1 :1 :1 Inventory turnover :1 :1 :1 Nordstrom is J.C. Penney for the current ratio Nordstrom is J.C. Penney for the acid-test ratio Nordstrom is J.C. Penney for the receivable turnover Nordstrom is J.C. Penney for the inventory turnover Nordstrom is Industry for the current ratio Nordstrom is Industry for the acid-test ratio Nordstrom is Industry for the receivable turnover Nordstrom is Industry for the inventory turnover