Managerial accounting 1b ch13 | Accounting homework help
Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 13
1.
Exercise 13-3 Computation and analysis of trend percents L.O. P1
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2013
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2012
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2011
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2010
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2009
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Sales
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$ 283,880
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$ 271,800
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$ 253,680
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$ 235,560
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$ 151,000
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Cost of goods sold
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129,200
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123,080
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116,280
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107,440
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68,000
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Accounts receivable
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19,100
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18,300
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17,400
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16,200
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10,000
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Compute trend percents for the above accounts, using 2009 as the base year. (Omit the “%” sign in your response.)
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2.
Exercise 13-7 Common-size percents L.O. P2
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Sanderson Company’s year-end balance sheets follow.
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At December 31
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2012
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2011
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2010
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Assets
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Cash
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$
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30,800
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$
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35,625
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$
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36,800
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Accounts receivable, net
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88,500
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62,500
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49,200
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Merchandise inventory
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111,500
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82,500
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53,000
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Prepaid expenses
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9,700
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9,375
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4,000
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Plant assets, net
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277,500
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255,000
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229,500
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||||||
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Total assets
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$
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518,000
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$
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445,000
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$
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372,500
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||||||
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Liabilities and Equity
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Accounts payable
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$
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128,900
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$
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75,250
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$
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49,250
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Long-term notes payable secured by
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97,500
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102,500
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82,500
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Common stock, $10 par value
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162,500
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162,500
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162,500
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Retained earnings
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129,100
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104,750
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78,250
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||||||
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Total liabilities and equity
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$
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518,000
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$
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445,000
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$
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372,500
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||||||
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Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response.)
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Exercise 13-9 Liquidity analysis and interpretation L.O. P3
[The following information applies to the questions displayed below.]
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Sanderson Company’s year-end balance sheets follow.
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At December 31
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2012
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2011
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2010
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Assets
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Cash
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$
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30,800
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$
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35,625
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$
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36,800
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Accounts receivable, net
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88,500
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62,500
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49,200
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Merchandise inventory
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111,500
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82,500
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53,000
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Prepaid expenses
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9,700
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9,375
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4,000
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Plant assets, net
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277,500
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255,000
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229,500
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||||||
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Total assets
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$
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518,000
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$
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445,000
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$
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372,500
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||||||
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Liabilities and Equity
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Accounts payable
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$
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128,900
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$
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75,250
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$
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49,250
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Long-term notes payable secured by
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97,500
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102,500
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82,500
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Common stock, $10 par value
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162,500
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162,500
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162,500
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Retained earnings
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129,100
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104,750
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78,250
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Total liabilities and equity
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$
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518,000
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$
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445,000
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$
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372,500
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The company’s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit:
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For Year Ended December 31
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2012
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2011
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Sales
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$
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672,500
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$
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530,000
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Cost of goods sold
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$
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410,225
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$
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344,500
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Other operating expenses
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208,550
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133,980
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Interest expense
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11,100
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12,300
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Income taxes
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8,525
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7,845
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Total costs and expenses
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638,400
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498,625
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Net income
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$
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34,100
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$
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31,375
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Earnings per share
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$
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2.10
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$
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1.93
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Section Break
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Exercise 13-9 Liquidity analysis and interpretation L.O. P3
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3.
Exercise 13-9 Part 1
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(1)
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Compute days’ sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.)
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4.
Exercise 13-9 Part 2
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(2)
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Compute accounts receivable turnover. (Round your answers to 1 decimal place.)
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2012
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2011
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5.
Exercise 13-9 Part 3
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(3)
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Compute inventory turnover. (Round your answers to 1 decimal place.)
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6.
Exercise 13-9 Part 4
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(4)
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Compute days’ sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to the nearest whole number.)
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2012
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2011
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Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3
[The following information applies to the questions displayed below.]
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Selected comparative financial statements of Bennington Company follow:
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BENNINGTON COMPANY
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Comparative Income Statements
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For Years Ended December 31, 2012, 2011, and 2010
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2012
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2011
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2010
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Sales
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$
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444,000
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$
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340,000
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$
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236,000
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Cost of goods sold
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267,288
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212,500
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151,040
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Gross profit
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176,712
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127,500
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84,960
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Selling expenses
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62,694
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46,920
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31,152
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Administrative expenses
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40,137
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29,920
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19,470
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Total expenses
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102,831
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76,840
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50,622
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Income before taxes
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73,881
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50,660
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34,338
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Income taxes
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13,764
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10,370
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6,962
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Net income
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$
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60,117
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$
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40,290
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$
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27,376
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BENNINGTON COMPANY
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Comparative Balance Sheets
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December 31, 2012, 2011, and 2010
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2012
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2011
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2010
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Assets
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Current assets
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$
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48,480
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$
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37,924
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$
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50,648
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Long-term investments
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0
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500
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3,720
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Plant assets, net
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90,000
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96,000
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57,000
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||||||
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Total assets
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$
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138,480
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$
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134,424
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$
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111,368
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||||||
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Liabilities and Equity
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Current liabilities
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$
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20,200
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$
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19,960
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$
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19,480
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Common stock
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72,000
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72,000
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54,000
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Other paid-in capital
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9,000
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9,000
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6,000
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Retained earnings
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37,280
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33,464
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31,888
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||||||
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Total liabilities and equity
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$
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138,480
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$
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134,424
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$
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111,368
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7.
Problem 13-1A Part 1
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Required:
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1.
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Compute each year’s current ratio. (Round your answers to 1 decimal place.)
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Current ratio
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December 31, 2012:
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Current ratio
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December 31, 2011:
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Current ratio
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December 31, 2010:
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8.
Problem 13-1A Part 2
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2.
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Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)
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9.
Problem 13-1A Part 3
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3.
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Express the balance sheet data in trend percents with 2010 as the base year. (Round your answers to 2 decimal places. Leave no cells blank – be certain to enter “0” wherever required. Omit the “%” sign in your response.)
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