Park University - AC 202: Chapter 13 Homework. All Solutions Worked Out Step by Step.

Exercise 13-6 (Part Level Submission) Here are the comparative income statements of Concord Corporation. CONCORD CORPORATION Comparative Income Statement For the Years Ended December 31 Net sales Cost of ...

Exercise 13-6 (Part Level Submission) Here are the comparative income statements of Concord Corporation. CONCORD CORPORATION Comparative Income Statement For the Years Ended December 31 Net sales Cost of goods sold Gross Profit Operating expenses Net income (a) Your answer is correct. Prepare a horizontal analysis of the income statement data for Concord Corporation, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) CONCORD CORPORATION Comparative Income Statement Increase or (Decrease) During 2017 2017 2016 Amount Percentage Net sales Cost of goods sold Gross Profit Operating expenses Net income (b) Your answer is correct. Prepare a vertical analysis of the income statement data for Concord Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.) CONCORD CORPORATION Condensed Income Statements 2017 2016 $ Percent $ Percent Net sales Cost of goods sold Gross Profit Operating expenses Net income Exercise 13-5 Suppose the comparative balance sheets of Splish Brothers Inc. are presented here. SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current Liabilities Long-term liabilities Stockholders’ equity Total liabilities and stockholders' equity (a) Prepare a horizontal analysis of the balance sheet data for Splish Brothers, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) SPLISH BROTHERS INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2013 Assets Current Assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current Liabilities Long-term liabilities Stockholders’ equity Total liabilities and stockholders' equity (b) Prepare a vertical analysis of the balance sheet data for Splish Brothers for 2017. SPLISH BROTHERS INC. Condensed Balance Sheet $ (in millions) Percent Assets Current Assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current Liabilities Long-term Liabilities Stockholders’ equity Total liabilities and stockholders' equity Problem 13-1A (Part Level Submission) Here are comparative statement data for Cullumber Company and Oriole Company, two competitors. All balance sheet data are as of December 31, 2017, and December 31, 2016. Cullumber Company Oriole Company 2017 2016 2017 2016 Net sales Cost of goods sold Operating expenses Interest expense Income tax expense Current assets Plant assets (net) Current liabilities Long-term liabilities Common stock, $10 par Retained earnings (A) Prepare a vertical analysis of the 2017 income statement data for Cullumber Company and Oriole Company. (Round all ratios to 1 decimal place, e.g. 2.5%.) Condensed Income Statement For the Year Ended December 31, 2017 Cullumber Company Oriole Company Dollars Percent Dollars Percent (B) Compute the 2017 return on assets and the return on common stockholders’ equity for both companies. (Round all ratios to 1 decimal place, e.g. 2.5%.) Cullumber Company Oriole Company Return on assets % % Return on common stockholders’ equity % % Problem 13-2A The comparative statements of Ivanhoe Company are presented here. IVANHOE COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income IVANHOE COMPANY Balance Sheets December 31 Assets 2017 2016 Current assets Cash Debt investments (short-term) Accounts receivable Inventory Total current assets Plant assets (net) Total assets Liabilities and Stockholders’ Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders’ equity Common stock ($5 par) Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity All sales were on account. Net cash provided by operating activities for 2017 was $223,000. Capital expenditures were $137,000, and cash dividends were $58,800. Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%. (a) Earnings per share (b) Return on common stockholders’ equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (f) Average collection period (g) Inventory turnover (h) Days in inventory (i) Times interest earned (j) Asset turnover (k) Debt to assets ratio (l) Free cash flow Problem 13-5A Suppose selected financial data of Target and Wal-Mart for 2017 are presented here (in millions). Target Corporation Wal-Mart Stores, Inc. Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Balance Sheet Data (End of Year) Current assets Noncurrent assets Total assets Current liabilities Long-term debt Total stockholders’ equity Total liabilities and stockholders’ equity Beginning-of-Year Balances Total assets Total stockholders’ equity Current liabilities Total liabilities Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends (a) For each company, compute the following ratios. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.) Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders’ equity (10) Debt to assets ratio % (11) Times interest earned times (12) Free cash flow