ACC 561 week 2 Wiley PLUS Assignment
E13-5 E13-6 E13-9
E13-5 The comparative balance sheets of Nike, Inc. are presented here.
NIKE INC.
Comparative Balance Sheets
May 31
($ in millions)
Assets 2007 2006
Current assets $8,076 $7,346
Property, plant, and equipment (net) 1,678 1,658
Other assets 934 866
Total assets $10,688 $9,870
Liabilities and Stockholders' Equity
Current liabilities $2,584 $2,612
Long-term liabilities 1,079 973
Stockholders' equity 7,025 6,285
Total liabilities and stockholders' equity $10,688 $9,870
Complete the horizontal analysis of the balance sheet
data for Nike using 2006 as a base. (If amount decreases, use either a negative
sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Roun all percentages
to 1 decimal place, e.g. 12.5.)
NIKE, INC.
Condensed Balance Sheet
December 31
($ in millions)
Increase or (Decrease)
2007 2006 Amount Percentage
Assets
Current assets $8,076 $7,346 $730 9.9%
E13-6 Here are the comparative income statements of Winfrey Corporation.
WINFREY
CORPORATION
Comparative
Income Statements
For the
Years Ended December 31
2010 2009
Net sales $598,000 $520,000
Cost of goods sold 477,000 450,000
Gross profit $121,000 $ 70,000
Operating expenses 80,000 45,000
Net income $ 41,000 $ 25,000
Instructions
(a) Prepare a horizontal analysis of the income
statement data for Winfrey Corporation using 2009 as a base. (Show the amounts
of increase or decrease.)
(b) Prepare a vertical analysis of the income statement data for Winfrey
Corporation for both years
E13-9 Armada Company has these comparative balance sheet data:
ARMADA COMPANY
Balance
Sheets
Additional
information for 2010:
1. Net income was $25,000.
2. Sales on account were $375,000. Sales returns and
allowances amounted to $25,000.
3. Cost of goods sold was $198,000.
4. Net cash provided by operating activities was
$48,000.
5. Capital expenditures were $25,000, and cash
dividends were $18,000.
Compute the following ratios at December 31, 2010. (Round to 3 decimal places, e.g. 2.515.)Current :1
Receivables turnover times
Average collection period days
Inventory turnover times
Days in inventory days
Cash debt coverage times
Current cash debt coverage times
Free cash flow $
SOLUTION PREVIEW
EXERCISE 13-5
(a)
NIKE, INC.
Condensed Balance
Sheet May 31
($ in millions)
|
|
2007
|
2006
|
Increase
(Decrease)
|
Percentage
Change
from 2006
|
|
|
|
|
|
|
|
Assets
Current
assets
Property,
plant, and
equipment
(net)
Other assets
Total assets
|
$ 8,076
1,678
934
$10,688
|
$7,346
1,658
866
$9,870
|
$730
20
68
$818
|
9.9%
1.2%
7.9%
8.3%
|
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