Business
Engineering
Math
Science
Social Science
Intermediate Accounting: Reporting...
Solutions
Intermediate Accounting: Reporting...
Use the following information for P4-17 and P4-18:
The Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 20X2 and 20X3 follow.
Common-Size and Rate of Change Analyses: Hershey Refer to the information for Hershey above.
Required:
Compute the common-size balance sheet for 20X3 and the rate of change balance sheet for 20X3. Which two asset accounts and which two liability and share-holders equity accounts are the largest relative to total assets in 20X3? Which two asset account and which two liability and share-holders equity accounts grew at the fastest rates 20X3? (Note: You may find it helpful to enter the data into an Excel spreadsheet for these computations.)
Calculate the common-size balance sheet and the rate of change balance sheet, state the two asset accounts, two liability and shareholders’ equity accounts that grew faster during 20X3.
Common-size analysis:
In common size analysis, the amount of each item is recorded in a statement as a percentage of certain designated totals and it is more helpful for comparing statements related to two or more periods.
Common-size balance sheet and rate of change balance sheet is prepared as follows:
| Company H | ||||
| Consolidated Balance Sheet | ||||
| Assets | 20X2 (a) | 20X3 (b) |
20X3 | 20X3 |
| Current Assets: | Â | Â | Â | Â |
| Cash and Equivalents | $728.3 | $118.5 | 20.9% | 53.6% |
| Receivables | $461.4 | $477.9 | 8.9% | 3.6% |
| Inventories | $633.3 | $659.5 | 12.3% | 4.1% |
| Deferred Income Taxes | $122.2 | $52.5 | 1.0% | 57.0% |
| Prepaid Expenses and Other Assets | $168.3 | $178.9 | 3.3% | 6.3% |
| Total Current Assets | $2,113.5 | $2,487.3 | 46.4% | 17.7% |
| Property, Plant and Equipment, Net | $1,674.1 | $1,805.3 | 33.7% | 7.8% |
| Goodwill | $588.0 | $576.6 | 10.8% | -1.9% |
| Other Intangible Assets, net | $214.7 | $195.2 | 3.6% | -9.1% |
| Other Assets | $164.5 | $293.0 | 5.5% | 78.1% |
| Total Assets | $4,754.8 | $5,357.5 | 100.0% | 12.7% |
| Liabilities and Shareholders’ Equity |  |  |  |  |
| Current Liabilities: | Â | Â | Â | Â |
| Accounts Payable | $442.0 | $461 | ||
Chapter 4 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addBriefly discuss the differences between (A) adoption of IFRS by the U.S. Securities and Exchange Commission and...
Financial And Managerial Accounting
Solve the following independent problems. Required: 1. Andromeda Companys break-even point is 2,400 units. Vari...
Managerial Accounting: The Cornerstone of Business Decision-Making
What problem is common to all private key encryption techniques?
Accounting Information Systems
Communication Godwin Co. owns three delivery trucks. Details for each truck at the end of the most recent year ...
Corporate Financial Accounting
Assume that Brooke Miles, accounts payable clerk for West Coast Design Inc., stole 48,350 by paying fictitious ...
Financial Accounting
Foot and balance the accounts receivable T account shown below.
College Accounting, Chapters 1-27
Appendix Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2018, the...
Financial & Managerial Accounting
Develop an appropriate business mission statement
MKTG 12:STUDENT ED.-TEXT
List and describe the three basic subprocesses completed in processing business event data using OLRT processin...
Accounting Information Systems
When a market is in equilibrium, the buyers are those with the _____ willingness to pay and the setters are tho...
Principles of Macroeconomics (MindTap Course List)
Adam Smith's invisible hand" refers to a. the subtle and often hidden methods that businesses use to profit at ...
Essentials of Economics (MindTap Course List)
Some of the websites show graphs indicating how one currency has done relative to another currency. a. Over the...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
In a Gallup telephone survey conducted on April 9-10,2013, the person being interviewed was asked if he would v...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
For what types of products are psychological pricing strategies most likely to be used?
Foundations of Business (MindTap Course List)
(Price Leadership) Why might a price-leadership model of oligopoly not be an effective means of collusion in an...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
The government in an open economy cuts spending to reduce the budget deficit. As a result, the interest rate __...
Brief Principles of Macroeconomics (MindTap Course List)
Tackling Inappropriate and Illegal Interview Questions: Although some questions are considered inappropriate an...
Essentials of Business Communication (MindTap Course List)
PREFERRED STOCK RETURNS Avondale Aeronautics has perpetual preferred stock outstanding with a par value of 100....
Fundamentals of Financial Management (MindTap Course List)
During the Revolutionary War, the American colonies could not raise enough tax revenue to fully fund the war ef...
Principles of Microeconomics (MindTap Course List)
Describe the four variables of the marketing mix.
Contemporary Marketing
Economics is best defined as the study of a. how society manages its scarce resources. b. how to run a business...
Principles of Economics (MindTap Course List)
Which Of the four components Of emotional intelligence do you consider most important to an effective manager i...
Management, Loose-Leaf Version
Nineteen measures of solvency and profitability The comparative financial statements of Stargel Inc. are as fol...
Financial & Managerial Accounting
The following data (in thousands) were taken from recent annual reports of Apple Inc., a manufacturer of person...
Financial Accounting
Why Does It Matter? ECOTOUR EXPEDITIONS, INC., Jamestown, Rhode Island You probably have never imagined the pos...
College Accounting (Book Only): A Career Approach
Break-even analysis The Junior League of Yadkinville, California, collected recipes from members and published ...
Accounting (Text Only)
Foreign Affairs magazine conducted a survey to develop a profile of its subscribers (Foreign Affairs website, F...
Statistics for Business & Economics, Revised (MindTap Course List)
SPOT AND FORWARD RATES Anderson Australian Imports has agreed to purchase 15,000 cases of Australian wine for 4...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Refer to the cost curve in the following exhibit: a. What is the lowest level of output at which the efficient ...
Exploring Economics
A friend of yours, Anika Valli, has decided to open a spa to serve her small resort town of about 7,000 people ...
College Accounting (Book Only): A Career Approach
STRAIGHT-LINE, DECLINING-BALANCE, AND SUM-OF-THE-YEARS-DIGITS METHODS A light truck is purchased on January 1 a...
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
COST OF TRADE CREDIT AND BANK LOAN Lamar Lumber buys 8 million of materials (net of discounts) on terms of 3/5,...
Fundamentals of Financial Management (MindTap Course List)
What is the systems development life cycle (SDLC)?
Pkg Acc Infor Systems MS VISIO CD
What distinguishes money from other assets in the economy?
Principles of Macroeconomics (MindTap Course List)
Kip Bowman is owner and sole employee of KB Corporation. He pays himself a salary of 1,500 each week. Additiona...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Business entity assumption Ozark Sports sells hunting and fishing equipment and provides guided hunting and fis...
Corporate Financial Accounting
Missing amounts from balance sheet and income statement data One item is omitted in each of the following summa...
Survey of Accounting (Accounting I)
Discuss the different uses a manager has for purchasing and supply chain performance data.
Purchasing and Supply Chain Management
Rework the previous problem under the assumption that Galveston has a refinery capacity of 150,000 barrels per ...
Practical Management Science
Use the data in question 2, and assume the equilibrium wage rate is 90 per day, determined in a perfectly compe...
Economics For Today
Compute the following: a. The present value of 25,000 each year for 4 years at a 7 percent interest rate b. The...
Microeconomics
Prior to installing a JIT system, Barker Company, a producer of automobile parts, used maintenance hours to ass...
Cornerstones of Cost Management (Cornerstones Series)
What is the difference between diseconomies of scale and the law of diminishing marginal returns?
Economics (MindTap Course List)
