Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Question
Chapter 10, Problem 10.2MAD
a.
To determine
To compute: The
b.
To determine
To compute: The
c.
To determine
To compute: The quick ratio for each company.
d.
To determine
To identify: The company which has the greater short-term liquidity.
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Common-Size Balance SheetsConsider the following balance sheet data for Great Buy Co., Inc., an electronics and major appliance retailer (amounts in thousands):
Current Year
Previous Year
Cash and Cash Equivalents
$62,872
$10,138
Accounts Receivables
55,944
40,968
Merchandise Inventories
640,950
252,991
Other Current Assets
13,844
9,829
Total Current Assets
773,610
313,926
Property and Equipment (net)
175,724
129,442
Other Assets
18,160
10,774
Total Assets
$967,494
$454,142
Current Liabilities
$405,028
$189,005
Long-Term liabilities
242,022
73,854
Total Liabilities
647,050
262,859
Common Stock
5,087
4,149
Additional Paid-in-Capital
227,089
140,151
Retained Earnings
88,268
46,983
Total Stockholders' Equity
320,444
191,283
Total Liabilities and Stockholders' Equity
$967,494
$454,142
Prepare common-size balance sheets for each year (use total assets as the base amount for computing percentages). Round percentages to one decimal point. Compute…
Summary information from the financial statements of two companies competing in the same industry follows.
BarcoCompany
KyanCompany
BarcoCompany
KyanCompany
Data from the current year-end balance sheets
Data from the current year’s income statement
Assets
Sales
$
800,000
$
926,200
Cash
$
18,500
$
31,000
Cost of goods sold
595,100
638,500
Accounts receivable, net
37,400
55,400
Interest expense
9,200
10,000
Merchandise inventory
84,740
136,500
Income tax expense
15,377
25,570
Prepaid expenses
6,000
7,700
Net income
180,323
252,130
Plant assets, net
350,000
307,400
Basic earnings per share
4.75
5.84
Total assets
$
496,640
$
538,000
Cash dividends per share
3.81
3.98
Liabilities and Equity
Beginning-of-year balance sheet data
Current liabilities
$
62,340
$
94,300
Accounts receivable, net
$
31,800
$…
Comparative Balance SheetsConsider the following balance sheet data for Great Buy Co., Inc., an electronics and major appliance retailer (amounts in thousands):
Current Year
Previous Year
Cash and Cash Equivalents
$113,756
$12,848
Accounts Receivables
100,593
68,342
Merchandise Inventories
1,212,105
449,983
Other Current Assets
26,303
17,692
Total Current Assets
1,452,757
548,865
Property and Equipment (net)
328,175
227,596
Other Assets
28,804
13,993
Total Assets
$1,809,736
$790,454
Current Liabilities
$763,853
$334,809
Long-Term liabilities
454,141
127,537
Total Liabilities
1,217,994
462,346
Common Stock
3,965
2,068
Additional Paid-in-Capital
425,768
246,871
Retained Earnings
162,009
79,169
Total Stockholders' Equity
591,742
328,108
Total Liabilities and Stockholders' Equity
$1,809,736
$790,454
Prepare a comparative balance sheet, showing increases in dollars and percentages.
Note: Round "Percent Change" answers to one decimal place (ex:…
Chapter 10 Solutions
Corporate Financial Accounting
Ch. 10 - Does a discounted note payable provide credit...Ch. 10 - Employees are subject to taxes withheld from their...Ch. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - To match revenues and expenses properly, should...Ch. 10 - Prob. 7DQCh. 10 - Installment notes require equal periodic payments....Ch. 10 - When should the liability associated with a...Ch. 10 - Prob. 10DQ
Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Prob. 10.2BECh. 10 - Journalize period payroll The payroll register of...Ch. 10 - Prob. 10.4BECh. 10 - Prob. 10.5BECh. 10 - Journalizing installment notes On the first day of...Ch. 10 - Prob. 10.7BECh. 10 - Quick ratio Adieu Company reported the following...Ch. 10 - Current liabilities Bon Nebo Co. sold 30,000...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Prob. 10.7EXCh. 10 - Calculate payroll An employee earns 30 per hour...Ch. 10 - Prob. 10.9EXCh. 10 - Summary payroll data In the following summary of...Ch. 10 - Prob. 10.11EXCh. 10 - Payroll entries The payroll register for D. Salah...Ch. 10 - Payroll entries Widmer Company had gross wages of...Ch. 10 - Prob. 10.14EXCh. 10 - Prob. 10.15EXCh. 10 - Accrued vacation pay A business provides its...Ch. 10 - Prob. 10.17EXCh. 10 - Prob. 10.18EXCh. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Accrued product warranty Fosters Manufacturing Co....Ch. 10 - Prob. 10.23EXCh. 10 - Prob. 10.24EXCh. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Prob. 10.4APRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 10.1BPRCh. 10 - Prob. 10.2BPRCh. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Prob. 10.4BPRCh. 10 - Payroll accounts and year-end entries The...Ch. 10 - Prob. 3COPCh. 10 - Analyze and compare Amazon.com to Best Buy...Ch. 10 - Prob. 10.2MADCh. 10 - Prob. 10.3MADCh. 10 - Analyze and compare Neiman Marcus and Kohls Neiman...Ch. 10 - Analyze and compare Cabelas and Dicks Sporting...Ch. 10 - Ethics in Action Tonya Latirno is a staff...Ch. 10 - Prob. 10.4TIFCh. 10 - Prob. 10.5TIF
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