menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the company’s financial statements for the 2 most recent years. Refer to the information for Kepler Company on the previous page. Required: Note : Round all percentages to one decimal place. 1. Express each item in the asset section of the balance sheet as a percentage of total assets for each year. 2. Express each item in the liabilities and equity section as a percentage of total liabilities and equity for each year. 3. Express each item in the income statement as a percentage of sales for each year.

BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

Solutions

Chapter
Section
BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
Chapter 15, Problem 60P
Textbook Problem
15 views

Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the company’s financial statements for the 2 most recent years.

Chapter 15, Problem 60P, Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture , example  1

Chapter 15, Problem 60P, Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture , example  2

Refer to the information for Kepler Company on the previous page.

Required:

Note: Round all percentages to one decimal place.

  1. 1. Express each item in the asset section of the balance sheet as a percentage of total assets for each year.
  2. 2. Express each item in the liabilities and equity section as a percentage of total liabilities and equity for each year.
  3. 3. Express each item in the income statement as a percentage of sales for each year.

1.

To determine

Show each item of the asset section in the balance sheet in terms of percentage of total assets for this year and last year.

Explanation of Solution

Common-size analysis

One of the techniques of financial statement analysis is common-size analysis where each item in the financial statement is expressed in terms of percentage to compare present statement with the statement of the previous year. Horizontal and vertical analyses are two forms of analysis under common-size analysis.

Percentage of line items in asset section of balance sheet as percent of total assets:

Particulars

This year

(amount

in $)

Percentage

(%)

Last year

(amount

in $)

Percentage

(%)

Assets    
Current assets    
Cash50,0004.5100,00012
Accounts receivables300,00027...

2.

To determine

Show each item of liabilities and equity section in the balance sheet in terms of percentage of total liabilities for this year and last year.

3.

To determine

Show each item in the income statement in terms of percentage of sales for this year and last year.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 15 Solutions

Managerial Accounting: The Cornerstone of Business Decision-Making
Show all chapter solutions
add
Ch. 15 - Explain why an investor would be interested in a...Ch. 15 - Assume that you have been given the responsibility...Ch. 15 - Explain how an investor might use the...Ch. 15 - When a company participates in a stock buyback...Ch. 15 - Explain the significance of the inventory turnover...Ch. 15 - In a JIT manufacturing environment, the current...Ch. 15 - In examining Luke Companys current-period income...Ch. 15 - An advantage of common-size analysis is that a....Ch. 15 - Fractions or percentages computed by dividing one...Ch. 15 - The measures of the ability of a company to meet...Ch. 15 - Pedee Companys inventory turnover in days is 80...Ch. 15 - Etchey Company shows that 46% of its assets are...Ch. 15 - Profitability ratios are used by which of the...Ch. 15 - Fred and Torrie Jones are a retired couple looking...Ch. 15 - A small pizza restaurant, founded and owned by the...Ch. 15 - The after-tax cost of interest expense is used in...Ch. 15 - Scherer Company provided the following income...Ch. 15 - Scherer Company provided the following income...Ch. 15 - Chen Company has current assets equal to...Ch. 15 - Last year, Nikkola Company had net sales of...Ch. 15 - Last year, Nikkola Company had net sales of...Ch. 15 - Paxton Company provided the following income...Ch. 15 - Ernst Companys balance sheet shows total...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - Jasmine Company provided the following income...Ch. 15 - Jasmine Company provided the following income...Ch. 15 - LoLo Lemon Company has current assets equal to...Ch. 15 - Last year, Tobys Hats had net sales of 45,000,000...Ch. 15 - Last year, Tobys Hats had net sales of 45,000,000...Ch. 15 - Alessandra Makeup Manufactures provided the...Ch. 15 - Klynveld Companys balance sheet shows total...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - The income statement, statement of retained...Ch. 15 - Sundahl Companys income statements for the past 2...Ch. 15 - Sundahl Companys income statements for the past 2...Ch. 15 - Cuneo Companys income statements for the last 3...Ch. 15 - Cuneo Companys income statements for the last 3...Ch. 15 - Jordan Company provided the following information:...Ch. 15 - Upton Company has current assets equal to...Ch. 15 - Montalcino Company had net sales of 54,000,000....Ch. 15 - Whalen Company had net sales of 125,500,250,000....Ch. 15 - Belt Company had net sales of 2,225,500,000 and...Ch. 15 - Delater Company had sales of 3,948,340 and a gross...Ch. 15 - Bryce Company manufactures pet supplies. However,...Ch. 15 - Tsao Company provided the following income...Ch. 15 - Busch Companys balance sheet shows total...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Juroe Company provided the following income...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - Rebert Inc. showed the following balances for last...Ch. 15 - The following selected information is taken from...Ch. 15 - Grammatico Company has just completed its third...Ch. 15 - The following information has been gathered for...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Mike Sanders is considering the purchase of Kepler...Ch. 15 - Albion Inc. provided the following information for...Ch. 15 - Based on customer feedback, Ted Pendleton, manager...Ch. 15 - Suppose that you are considering investing in one...Ch. 15 - Pete Donaldson, president and owner of Donaldson...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
Describe marketing uses of branding

MKTG 12:STUDENT ED.-TEXT

Is the following equation correct for finding the value of a constant growth stock? Explain. P0=Dors+g

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)