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Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 13
1.
Exercise 13-3 Computation and analysis of trend percents L.O. P1
2013
2012
2011
2010
2009
Sales
283,880
$ 271,800
$ 253,680
$ 235,560
$ 151,000
Cost of goods sold
129,200
123,080
116,280
107,440
68,000
Accounts receivable
19,100
18,300
17,400
16,200
10,000
|
Compute trend percents for the above accounts, using 2009 as the base year. (Omit the “%” sign in your response.) |
Exercise 13-7 Common-size percents L.O. P2
|
Sanderson Company’s year-end balance sheets follow. |
|
At December 31 |
|||||||||||||
Cash
$
30,800
$
35,625
$
36,800
Accounts receivable, net
88,
500
62,500
49,200
Merchandise inventory
111,500
82,500
53,000
Prepaid expenses
9,700
9,375
4,000
Plant assets, net
277,500
255,000
229,500
Total assets
$
518,000
$
445,000
$
372,500
Liabilities and Equity
Accounts payable
$
128,900
$
75,250
$
49,250
Long-term notes payable secured by mortgages on plant assets
97,500
102,500
82,500
Common stock, $10 par value
162,500
162,500
162,500
Retained earnings
129,100
104,750
78,250
Total liabilities and equity
$ 518,000 $ 445,000 $ 372,500
|
Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response.) |
Exercise 13-9 Liquidity analysis and interpretation L.O. P3
[The following information applies to the questions displayed below.]
Sanderson Company’s year-end balance sheets follow.
| Assets | |
|
The company’s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit: |
|
For Year Ended December 31 |
|||
|
672,500 |
530,000 |
||
|
410,225 |
344,500 |
||
|
Other operating expenses |
208,550 |
133,980 |
|
|
Interest expense |
11,100 |
12,300 |
|
|
Income taxes |
8,525 |
7,845 |
|
|
Total costs and expenses |
638,400 |
498,625 |
|
|
Net income |
34,100 |
31,375 |
|
|
Earnings per share |
2.10 |
1.93 |
|
Section Break |
Exercise 13-9 Liquidity analysis and interpretation L.O. P3 |
3.
Exercise 13-9 Part 1
|
(1) |
Compute days’ sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.) |
4.
Exercise 13-9 Part 2
|
(2) |
Compute accounts receivable turnover. (Round your answers to 1 decimal place.) |
|
2012 |
|
|
2011 |
5.
Exercise 13-9 Part 3
|
(3) |
Compute inventory turnover. (Round your answers to 1 decimal place.) |
6.
Exercise 13-9 Part 4
|
(4) |
Compute days’ sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to the nearest whole number.) |
2012 2011
Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3
[The following information applies to the questions displayed below.]
|
Selected comparative financial statements of Bennington Company follow: |
|
BENNINGTON COMPANY |
|||
|
Comparative Income Statements |
|||
| For Years Ended |
December 31, 2012, 2011, and 2010 |
||
|
444,000 |
340,000 |
23 6,000 |
|
|
267,288 |
212,500 |
151,040 |
|
|
Gross profit |
176,712 |
127,500 |
84,960 |
|
Selling expenses |
62,694 |
46,920 |
31,152 |
|
Administrative expenses |
40,137 |
29,920 |
19,470 |
|
Total expenses |
102,831 |
76,840 |
50,622 |
|
Income before taxes |
73,881 |
50,660 |
34,338 |
|
13,764 |
10,370 |
6,962 |
|
|
60,117 |
40,290 |
27,376 |
|
|
Comparative Balance Sheets |
||||||
|
Assets |
||||||
|
Current assets |
48,480 |
37,924 |
50,648 |
|||
|
Long-term investments |
0 | 500 |
3,720 |
|||
|
Plant assets, net |
90,000 |
96,000 |
57,000 |
|||
|
Total assets |
138,480 |
134,424 |
111,368 |
|||
|
Liabilities and Equity |
||||||
|
Current liabilities |
20,200 |
19,960 |
19,480 |
|||
|
Common stock |
72,000 |
54,000 |
||||
|
Other paid-in capital |
9,000 |
6,000 | ||||
|
Retained earnings |
37,280 |
33,464 |
31,888 |
|||
|
Total liabilities and equity |
7.
Problem 13-1A Part 1
|
Required: |
|
| 1. |
Compute each year’s current ratio. (Round your answers to 1 decimal place.) |
|
Current ratio |
December 31, 2012: |
||
|
December 31, 2011: |
|||
|
December 31, 2010: |
8.
Problem 13-1A Part 2
|
Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.) |
9.
Problem 13-1A Part 3
| 3. |
Express the balance sheet data in trend percents with 2010 as the base year. (Round your answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “%” sign in your response.) |
