SavedAt December 31current Yr1 Yr Ago 2Yrs AgoASsets$434,455 $ 36, 25662,90084,009,044CashS 29,476Accounts receivable, netMerchandise inventoryPrepaid expensesPlant assets, net89, 500114, 0009, 492267, 31851, 40056, 0004, 028249,072226,016Total assets$509, 76$ 439, 471 $ 373, 700Liabilities and EquityAccounts payableLong -term notes payable secured bynortgages on plant assetSConnon stock, $10 par valueRetained earnings$124, 398$ 72,765 S 46, 34293, 923162, 500126, 965$509, 78699, 057162, 500105, 129$ 439, 471 $ 373, 70080,936162, 50081,922Total liabilities and equityThe company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales ore on credit:1 YE AgoS 522, 970For Year Ended Decenber 31Salescost of goods soldother operating expensesInterest expenseIncome tax expenseTotal costs and expensescurrent Yr$ 662, 722404, 260205, 44411, 2668,615$ 339,931132, 31112,0287,845629, 585S 33, 137492, 115$30, 855Net inconeEarnings per shareS2.041.90 (4-a) Compute days' sales in inventory.(4-b) For each ratio, determine if it improved or worsened in the current year.Complete this question by entering your answers in the tabs below.Required 4ARequired 4BCompute days' sales in inventory.Days' Sales In Inventory.Choose Numerator:Choose Denominator:DaysDays' Sales In Inventory%3DX.Days' sales in inventory%3DCurrent Yr:0 days1 Yr Ago:0 days< Required 4ARequired 4B>(4-a) Compute days' sales in inventory.(4-b) For each ratio, determine if it improved or worsened in the current year.Complete this question by entering your answers in the tabs below.Required 4ARequired 4BFor each ratio, determine if it improved or worsened in the current year.Days' sales in inventory< Required 4ARequired 4B >

Answer Formula: Days’ Sales in Inventory = (Average Inventory/ Cost of Goods Sold) X 365 Days…

Current Yr 1 Yr Ago 2 Yrs Ago At Decenber 31 Assets $ 29,476 69,500 114, 000 9,492 267, 318 $509, 766 $ 34,455 3 36, 256 S1, 400 56,000 4,028 226,016 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 62,900 84,000 9,044 249,072 Total assets $ 439, 471 $373, 700 Liabilities and Equity $124, 398 $ 72, 765 S 46, 342 ACcounts payable Long -term notes payable secured by nortgages on plant assets Connon stock, $10 par value Retained earnings 99, 057 162, 500 105, 129 $439, 471 $ 373, 700 93, 923 162, 500 120, 965 80,936 162, 500 81,922 Total liabilities and equity $509, 766 The company's income statements for the Current Year and 1 Year Ago, folow. Assume thet all sales ore on credt: current Yr $ 662,722 1 YE ADO S 522, 970 For Year Ended Decenber 31 sales cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses 3 404, 260 205.444 11, 266 8,615 $ 339,931 332,311 32, 028 7,845 629, 58S $33,137 492, 115 $30, 855 S1.00 Net incone Earnings per share SHIEG

Current Yr 1 Yr Ago 2 Yrs Ago At Decenber 31 Assets $ 29,476 69,500 114, 000 9,492 267, 318 $509, 766 $ 34,455 3 36, 256 S1, 400 56,000 4,028 226,016 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 62,900 84,000 9,044 249,072 Total assets $ 439, 471 $373, 700 Liabilities and Equity $124, 398 $ 72, 765 S 46, 342 ACcounts payable Long -term notes payable secured by nortgages on plant assets Connon stock, $10 par value Retained earnings 99, 057 162, 500 105, 129 $439, 471 $ 373, 700 93, 923 162, 500 120, 965 80,936 162, 500 81,922 Total liabilities and equity $509, 766 The company's income statements for the Current Year and 1 Year Ago, folow. Assume thet all sales ore on credt: current Yr $ 662,722 1 YE ADO S 522, 970 For Year Ended Decenber 31 sales cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses 3 404, 260 205.444 11, 266 8,615 $ 339,931 332,311 32, 028 7,845 629, 58S $33,137 492, 115 $30, 855 S1.00 Net incone Earnings per share SHIEG

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.9BE

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