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.) |