INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264559527
Author: SPICELAND
Publisher: MCG
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Chapter 4, Problem 4.15P
(1)
To determine
Condensed financial statement:
Condensed financial statements are statements which are prepared in addition to the traditional financial statement. It is viewed by the auditing team at the time of audit the condensed financial statements along with full financial statements for a full picture of the company’s financial status.
To Compare: The two firms greater earnings relative to resources available.
(2)
To determine
The two companies have achieved their respective rates of return on assets with similar combinations of profit margin and turnover.
(3)
To determine
To Calculate: The rate of return on shareholders’ equity of two firms.
(4)
To determine
To Calculate: The financial leverage (or) Equity multiplier of two firms.
(5)
To determine
To identify: Of the two companies, which company appears riskier in terms of its ability to pay short-term obligations
(6)
To determine
To identify: The efficient management of current assets.
(7)
To determine
To Identify: The creditor point of view, which company offers the most suitable margin of safety in terms of its ability to pay fixed interest charges?
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PROBLEM 17-19 Incomplete Statements; Analysis of Ratios [LO2, LO3, L04]
Incomplete financial statements for Tanner Company are given below:
Tanner Company
Income Statement
For the Year Ended December 31
Revenue.
$2,700,000
Cost of goods sold..
Gross margin.
Selling and administrative expenses . .
?
Net operating income
Interest expense
45,000
Net income before taxes
?
Income taxes, 40%.
?
Net income
2$
?
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Financial Staterment Analysis
923
Tanner Company
Balance Sheet.
December 31
Non-current Assets:
Plant and equipment, net
Current assets:
Accounts receivable, net . .
Inventory..
Cash and cash equivalents.
Total current assets
$ ?
Total assets
$ ?
Equity:
Common stock, $2.50 par value
Retained earnings
Total equity . . ..
Bonds payable, 10%
Current liabilities
?
$250,000
Total liabilities.
?
Total equity and liabilities
$ ?
The following additional information is available about the company:
Selected financial ratios computed…
Required Information
Problem 17-5A (Algo) Comparative ratio analysis LO P3
[The following information applies to the questions displayed below.]
Summary information from the financial statements of two companies competing in the same industry follows.
Barco
Kyan
Company
Company
Barco
Company
Kyan Company
Data from the current year-end
balance sheets
Data from the current year's income
statement
Assets
Sales
Prepaid expenses
Cash
$ 22,500
$ 34,000
Accounts receivable, net
40,400
59,400
Merchandise inventory
84,743
130,500
Plant assets, net
5,700
330,000
312,400
Basic earnings per share
Total assets
$ 483,348
$ 544,180
Cash dividends per share
Current liabilities
Liabilities and Equity
Long-term notes payable.
Common stock, $5 par value
Retained earnings
Total liabilities and equity
$ 483,343 $ 544,100
$ 64,340
$ 94,300
Accounts receivable, net
83,800
190,000
103,000
206,000
Beginning-of-year balance sheet data
Merchandise inventory
Total assets
145,200
140,800
Common stock, $5 par value…
Ratio Analysis
2.105
Ising the following data, complete the Balance Sheet below:
Gross Profit (20% of sales)
Shareholders' Equity
7 60,000
7 50,000
Credit Sales to Total sales
80%
Total Assets Turnover (Sales/Total Assets)
3 times
Inventory Turnover (to cost of Sales)
Average Collection Period (360 days a year)
8 times
18 days
Current ratio
1.6
Long-term debt to Equity
40%
Balance Sheet
Creditors
Cash
Long-term Debt
Shareholders' Equity
Debtors
Inventory
Fixed Asset
..... ...
.000:
Chapter 4 Solutions
INTERMEDIATE ACCOUNTING
Ch. 4 - The income statement is a change statement....Ch. 4 - What transactions are included in income from...Ch. 4 - Prob. 4.3QCh. 4 - Prob. 4.4QCh. 4 - Prob. 4.5QCh. 4 - What are restructuring costs and where are they...Ch. 4 - Define intraperiod tax allocation. Why is the...Ch. 4 - How are discontinued operations reported in the...Ch. 4 - What is meant by a change in accounting principle?...Ch. 4 - Prob. 4.10Q
Ch. 4 - The correction of a material error discovered in a...Ch. 4 - Define earnings per share (EPS). For which income...Ch. 4 - Prob. 4.13QCh. 4 - Describe the purpose of the statement of cash...Ch. 4 - Prob. 4.15QCh. 4 - Explain what is meant by noncash investing and...Ch. 4 - Distinguish between the direct method and the...Ch. 4 - Prob. 4.18QCh. 4 - Prob. 4.19QCh. 4 - Show the calculation of the following...Ch. 4 - Show the DuPont frameworks calculation of the...Ch. 4 - Prob. 4.22QCh. 4 - Prob. 4.23QCh. 4 - Prob. 4.1BECh. 4 - Prob. 4.2BECh. 4 - Prob. 4.3BECh. 4 - Prob. 4.4BECh. 4 - Prob. 4.5BECh. 4 - Prob. 4.6BECh. 4 - Prob. 4.7BECh. 4 - Prob. 4.8BECh. 4 - Prob. 4.9BECh. 4 - Prob. 4.10BECh. 4 - Prob. 4.11BECh. 4 - Prob. 4.12BECh. 4 - Statement of cash flows; indirect method LO48 Net...Ch. 4 - Prob. 4.14BECh. 4 - Prob. 4.15BECh. 4 - Prob. 4.3ECh. 4 - Prob. 4.4ECh. 4 - Prob. 4.5ECh. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Prob. 4.12ECh. 4 - Prob. 4.15ECh. 4 - Prob. 4.23ECh. 4 - Concepts; terminology LO41, LO42, LO43, LO44,...Ch. 4 - Inventory turnover; calculation and evaluation ...Ch. 4 - Prob. 4.29ECh. 4 - Prob. 4.30ECh. 4 - Prob. 4.31ECh. 4 - Prob. 4.32ECh. 4 - Prob. 4.1PCh. 4 - Prob. 4.2PCh. 4 - Prob. 4.3PCh. 4 - Prob. 4.4PCh. 4 - Prob. 4.5PCh. 4 - Prob. 4.6PCh. 4 - Prob. 4.7PCh. 4 - Prob. 4.8PCh. 4 - Prob. 4.9PCh. 4 - Prob. 4.11PCh. 4 - Prob. 4.12PCh. 4 - Use of ratios to compare two companies in the same...Ch. 4 - Prob. 4.15PCh. 4 - Prob. 4.16PCh. 4 - Prob. 4.1DMPCh. 4 - Judgment Case 42 Restructuring costs LO43 The...Ch. 4 - Prob. 4.3DMPCh. 4 - Prob. 4.4DMPCh. 4 - Prob. 4.5DMPCh. 4 - Prob. 4.6DMPCh. 4 - Prob. 4.7DMPCh. 4 - IFRS Case 48 Statement of cash flows;...Ch. 4 - Judgment Case 49 Income statement presentation;...Ch. 4 - Prob. 4.10DMPCh. 4 - Prob. 4.13DMPCh. 4 - Prob. 4.15DMPCh. 4 - Prob. 4.17DMPCh. 4 - Prob. 4.18DMPCh. 4 - Prob. 2CCTC
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