Horizontal and Vertical AnalysisPlato Clothing Company specializes in selling apparel forspecial occasions. In 2022 and 2023, Plato's accountbalances were as follows:Accounts receivableMerchandise inventoryTotal assetsNet salesCost of goods soldRequired:Accounts receivable1. Calculate the change in each of the Plato's accountsfrom 2022 to 2023. Enter negative sign for decreasevalues.Merchandise inventoryTotal assetsNet salesCost of goods soldAccounts receivableMerchandiseinventory2. Indicate what happened from 2022 to 2023 to accountsreceivable and merchandise inventory as a percentage oftotal assets. Round your answers to the nearest wholepercent.2023.Cost of goodssold2023.2023$60,7507,650297,040221,000113,880$000002023.2022$45,00017,100288,750211,20084,100fromfrom% in 2022 toIndicate what happened from 2022 to 2023 to cost ofgoods sold as a percentage of net sales. Round youranswers to the nearest whole percent.from% in 2022 to% in 2022 to

Horizontal and vertical analysis are two common methods used in financial statement analysis to…

Horizontal and Vertical Analysis Plato Clothing Company specializes in selling apparel for special occasions. In 2022 and 2023, Plato's account balances were as follows: Accounts receivable Merchandise inventory Total assets Net sales Cost of goods sold Req red: Accounts receivable Merchandise inventory 1. Calculate the change in each of the Plato's accounts from 2022 to 2023. Enter negative sign for decrease values. Total assets Net sales Cost of goods sold Accounts receivable Merchandise inventory 2023. Cost of goods sold 2023. $ $ 2. Indicate what happened from 2022 to 2023 to accounts receivable and merchandise inventory as a percentage of total assets. Round your answers to the nearest whole percent. 2023. $ 2023 $60,750 7,650 297,040 221,000 113,880 $ 2022 from $45,000 17,100 288,750 211,200 84,100 from % in 2022 to Indicate what happened from 2022 to 2023 to cost of goods sold as a percentage of net sales. Round your answers to the nearest whole percent. from % in 2022 to % in 2022 to

Horizontal and Vertical Analysis Plato Clothing Company specializes in selling apparel for special occasions. In 2022 and 2023, Plato's account balances were as follows: Accounts receivable Merchandise inventory Total assets Net sales Cost of goods sold Req red: Accounts receivable Merchandise inventory 1. Calculate the change in each of the Plato's accounts from 2022 to 2023. Enter negative sign for decrease values. Total assets Net sales Cost of goods sold Accounts receivable Merchandise inventory 2023. Cost of goods sold 2023. $ $ 2. Indicate what happened from 2022 to 2023 to accounts receivable and merchandise inventory as a percentage of total assets. Round your answers to the nearest whole percent. 2023. $ 2023 $60,750 7,650 297,040 221,000 113,880 $ 2022 from $45,000 17,100 288,750 211,200 84,100 from % in 2022 to Indicate what happened from 2022 to 2023 to cost of goods sold as a percentage of net sales. Round your answers to the nearest whole percent. from % in 2022 to % in 2022 to

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

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The following data pertain to 2012 activities of Twisp Industries: Use your completed worksheet to determine the firms cost of goods sold for 2012. Remember to change the year in row 24 and to enter new beginning inventory balances. Save the 2012 file as MFG3. Print the worksheet when done. If sales and other expenses were identical in 2011 and 2012, during which year did Twisp earn more income? Why?
Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions): a. Determine for bom companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. b. Compare and interpret the inventory metrics computed in (a).
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreenss Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 12. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
Inventory Analysis The following account balances are taken from the records of Lewis Inc., a wholesaler of fresh fruits and vegetables: Required Compute Lewiss inventory turnover ratio for 2016 and 2015. Compute the number of days sales in inventory for 2016 and 2015. Assume 360 days in a year. Comment on your answers in parts (1) and (2) relative to the companys management of inventory over the two years. What problems do you see in its inventory management?
Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following data: Required: 1. Calculate McLellands gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method. Be sure to explain what each ratio means. 2. Calculate McLellands gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method. Be sure to explain what each ratio means. 3. CONCEPTUAL CONNECTION Which ratios-the ones computed using FIFO or LIFO inventory values-provide the better indicator of how successful McLelland was at managing and controlling its inventory?
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.