Financial Accounting > QUESTIONS & ANSWERS > DeVry University, Chicago - ACCT 212 212ACCT 212 Week 8 Homework. (All)

DeVry University, Chicago - ACCT 212 212ACCT 212 Week 8 Homework.

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ACCT 212 Week 8 Homework The comparative income statements of Outdoor Music Co. follow: Calculate the change in the income statement amounts from 2017 to 2018. (Use a minus sign or parentheses for a... decrease.) Question 1a: Compute the dollar amount of change from one period (the base period) to the next. Question 1b: Divide the dollar amount of change by the base-period amount. (Use a minus sign or parentheses for a decrease. Round percentage changes to the nearest one-tenth percent, X.X Drive Golf Company's balance sheet at December 31, 2018 is as follows: Question 2a: Perform a vertical analysis of Drive Golf Company's balance sheet to determine the component percentages of its assets, liabilities, and stockholders' equity. (Round the percentages to the nearest hundredth percent, X.XX%.) Answer 2a: Explanation 2a: Vertical analysis shows the relationship of a financial statement item to its base, which is the 100% figure. All items on the financial statement are reported as a percentage of the base. For the income statement, net revenue (net sales) is usually the base. For the balance sheet, total assets is the base number. The following equation shows how to calculate each balance sheet item relative to the base (total assets). Question 2b: Now, using the formula from above, complete the vertical analysis of the company's remaining balance sheet accounts. The total current asset percentage that we calculated above has been entered for you. (Round the percentages to the nearest hundredthpercent, X.XX%.) Answer 2b: The financial statements of Family News, Inc., include the following items: Question 3a: Calculate the Current ratio. (Round the ratio to two decimal places.) Answer 3a [Show More]

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