FINANCIAL ACCT LL W/ACCESS
4th Edition
ISBN: 9781260732948
Author: SPICELAND
Publisher: MCG
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Chapter 12, Problem 12.3BP
1.
To determine
To Prepare: The vertical analysis of the
2.
To determine
To Prepare: The horizontal analysis of the balance sheet data for 2018 and 2017, using 2017 as the base year.
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Use the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow.
2017 2016Cash and cash equivalents R 75,000 R 58,800Trade accounts receivable, net 157,500 193,200Inventory 208,200 253,400Other current assets 18,400 15,500Total current assets R 459,100 R 520,900Total assets R2,650,000 R3,430,000Required:Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g.,…
2018
2017
Assets
Cash
90,800
48,400
Accounts receivable
92,800
33,000
Inventories
112,500
102,850
Prepaid expenses
28,400
26,000
Supplies
138,000
114,000
Machine
270,000
242,500
Less: Accumulated depreciation
-50,000
-52,000
Total
682,500
514,750
Liabilities and Shareholder’s equities
Accounts payable
112,000
67,300
Other payable
16,500
17,000
Notes payable
110,000
150,000
Total paid-in capital
220,000
175,000
Retained earnings
224,000
105,450
Total
682,500
514,750
Income statement for the year ended 31 Dec 2018
Sales revenue
392,780
Cost of goods sold
135,460
Gross profit
257,320
Adverting expense
12,410
Depreciation expense
46,500
Income taxes expense
27,280
Interest expense
4,730
Loss on sale of machine
7,500
Net income
158,900
Please prepare cash flow statement for the year ended 31 Dec 2018, show T-Account of Retain earning at 31 Dec 2018
Refer to the balance sheet information below for Home Depot.
$ millions
Feb. 3, 2019
Jan. 28,
2018
Operating assets
Nonoperating assets
Total assets
Operating liabilities
Nonoperating liabilities
Total liabilities
Net sales
$13,837 $13,414
583 1,178
$14,420 $14,592
$5,466 $5,259
9,569 8,857
$15,035 $14,116
$35,458
Operating expense before tax
30,369
Net operating profit before tax (NOPBT)
5,089
Other expense
319
Income before tax
Tax expense
Net income
4,770
1,126
$3,644
a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%.
Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA.
Denominator
Average NOA
NOPAT
$
Numerator
$
RNOA
8,263
0%
b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%.
Note: 1. Select the appropriate numerator and denominator used to compute…
Chapter 12 Solutions
FINANCIAL ACCT LL W/ACCESS
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - 5.In performing horizontal analysis, why is it...Ch. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 20RQCh. 12 - Prob. 12.1BECh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.4BECh. 12 - Prob. 12.5BECh. 12 - Universal Sports Supply began the year with an...Ch. 12 - Prob. 12.7BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.9BECh. 12 - Prob. 12.10BECh. 12 - Prob. 12.11BECh. 12 - Prob. 12.12BECh. 12 - Prob. 12.13BECh. 12 - Classify each of the following accounting...Ch. 12 - Classify each of the following accepted accounting...Ch. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Refer to the information for Adrian Express in...Ch. 12 - Prob. 12.7ECh. 12 - Calculate profitability ratios (LO124) Refer to...Ch. 12 - Prob. 12.9ECh. 12 - The income statement for Stretch-Tape Corporation...Ch. 12 - Prob. 12.11ECh. 12 - LeBrons Bookstores has two divisions, books and...Ch. 12 - Prob. 12.13ECh. 12 - Prob. 12.14ECh. 12 - Distinguish between conservative and aggressive...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.4APCh. 12 - Prob. 12.5APCh. 12 - Prob. 12.6APCh. 12 - Game-On Sports operates in two distinct segments:...Ch. 12 - Prob. 12.2BPCh. 12 - Prob. 12.3BPCh. 12 - Prob. 12.4BPCh. 12 - Prob. 12.5BPCh. 12 - Prob. 12.6BPCh. 12 - Prob. 12.1APCPCh. 12 - Prob. 12.2APFACh. 12 - Prob. 12.3APFACh. 12 - Prob. 12.4APCACh. 12 - Prob. 12.5APECh. 12 - Prob. 12.7APWCCh. 12 - Prob. 12.8APEM
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- As Reported Annual Balance Sheet Report Date Scale 2019 2018 2017 2016 Thousands Thousands Thousands Thousands Assets Cash & cash equivalents Receivables, net 9,465,000 7,722,000 6,756,000 6,867,000 6,283,000 5,614,000 43,783,000 3,511,000 59,664,000 107,675,000 5,835,000 43,046,000 1,941,000 57,689,000 107,710,000 6,284,000 Inventories 44,435,000 44.269.000 3,623,000 61,897,000 104,317,000 Prepaid expenses & other current assets Total current assets 1,622,000 61,806,000 105,208,000 17,424,000 4,417.000 Property & equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Property under capital lease & financing obligations, net Goodwill Other long-term assets Total assets 7,078,000 31,181,000 14,822,000 219,295,000 7,143,000 18,242,000 11,798,000 204,522,000 6.468,000 17,037,000 9,921,000 198,825,000 31,073,000 16,567,000 236,495,000 Liabilities & Equity Short-term borrowings Accounts payable Accrued liabilities 575,000 46,973,000 22,296,000 280,000…arrow_forwardLOGIC COMPANY Comparative Income Statement For Years Ended December 31, 2017 and 2018 2018 2017 $20,600 $16,200 800 Gross sales 100 Sales returns and allowances $19,800 $16,100 11,600 $ 8,200 $ 7,500 Net sales 8,600 Cost of merchandise (goods) sold Gross profit Operating expenses: Depreciation Selling and administrative Research $ 3,400 860 $ 680 2,800 710 580 Miscellaneous 520 380 $ 5,490 $ 4,440 $ 2,710 $ 3,060 Total operating expenses Income before interest and taxes Interest expense 720 580 $ 1,990 $ 2,480 796 Income before taxes Provision for taxes 992 Net income $ 1,194 $ 1,488 LOGIC COMPANY Comparative Balance Sheet December 31, 2017 and 2018 2018 2017 Assets Current assets: Cash $12,800 $ 9,800 13,300 14,800 10.800 Accounts receivable 17,300 9,300 Merchandise inventory Prepaid expenses 24.800 Prouarrow_forwardAssets Current assets Net fixed assets INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense 2021 $ 101 2022 $ 195 910 1,010 $ 2,005 1,085 405 251 Req A and B Req C and D BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders' Equity Current liabilities Long-term debt Req E Complete this question by entering your answers in the tabs below. a&b. What is shareholders' equity in 2021 and 2022? c&d. What is net working capital in 2021 and 2022? e. What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2022? g.Net fixed assets increased from $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in fixed assets during 2022? Answer is complete but not entirely correct. h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current…arrow_forward
- Е. The income statement , statement of retained earnings and balance sheet of Somerville Company are as follows: Somerville Company Income Statement For the Year Ended December 31, 2019 Amount Percent Net sales 8,281,989 100.0% Less: Cost of goods sold Gross margin Less: Operating expenses Operating income (5,383,293) 2,898,696 (1,323,368) 1,575,328 (50,000) 1,525,328 65.0 35.0 16.0 19.0 Less: Interest expense Income before taxes 0.6 18.4 Less: Income taxes (40%) (610,131) 915.197 7.4 Net income 11.0 Somerville Company Statement of Retained Earnings For the Year Ended December 31, 2019 Balance, beginning of period 1,979,155 Net income 915,197 Total 2,894,352 (80,000) (201,887) 2.612.465 Less: Preferred dividends Dividends to common stockholders Balance, end of periodarrow_forwardUse the following balance sheet for problems 19 through 21: Dec 31st 2019 Dec 31st 2018 Cash 30,000 35,000 Accounts Receivable 55,000 45,000 Inventory 65,000 45,000 Prepaid expenses 15,000 25,000 Equipment 80,000 85,000 Accumulated Depreciation (8,000) (18,000) Land 40,000 40,000 Total Assets 277,000 257,000 Accounts Payable 65,000 52,000 Income tax payable 15,000 18,000 Long-term notes payable 0 23,000 Bonds payable 30,000 0 Common stock 159,000 159,000 R/E 8,000 5,000 Total Liabilities & Equity 277,000 257,000 Additional information: Equipment costing $10,000 with accumulated depreciation of $4,000 was sold for a loss of $3,000. All equipment purchases during the year were for cash. Net income for 2019 was $20,000. Depreciation expense for 2019 was $14,000. 19) Compute net cash flow from operations (in the excel submission workbook, enter net cash PROVIDED by operating activities as a POSITIVE number, and net cash USED by operating activities as a NEGATIVE…arrow_forwardQuick BQtio all Yearh As Reported Annual Balance Sheet Report Date Scale 2019 2018 2017 2016 Thousands Thousands Thousands Thousands Assets 9,465,000 6,284,000 7,722,000 Cash & cash equivalents Receivables, net 6,756,000 6,867,000 6,283,000 5,614,000 5,835,000 44,269.000 3,623,000 61,897,000 104,317.000 Inventories 44.435,000 1,622,000 61,806,000 105,208,000 17,424,000 4,417,000 43,783,000 43,046,000 Prepaid expenses & other current assets Total current assets 3,511,000 59,664,000 107,675,000 1,941,000 57,689,000 107.710,000 Property & equipment, net Operating lease right-of-use assets Finance lease right-of-use assets, net Property under capital lease & financing obligations, net Goodwill Other long-term assets Total assets 7,078,000 31,181,000 14,822,000 219,295,000 7,143,000 18,242,000 31,073,000 16,567,000 236,495,000 6.468,000 17.037,000 9,921,000 198,825,000 11,798,000 204,522,000 Liabilities & Equity Short-term borrowings Accounts payable Accrued liabilities 575,000 46,973,000…arrow_forward
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