Week 10-Home work- E14-3 E14-4 E14-13 P14-6A

E14-3 The comparative condensed balance sheets of Garcia Corporation are presented below.

GARCIA CORPORATION Comparative Condensed Balance Sheets December 31
		2014		2013
Assets
Current assets		$ 76,000		$ 80,000
Property, plant, and equipment (net)		100,000		90,000
Intangibles		24,000		40,000
Total assets		$200,000		$210,000
Liabilities and stockholders’ equity
Current liabilities		$ 40,000		$ 48,000
Long-term liabilities		140,000		150,000
Stockholders’ equity		20,000		12,000
Total liabilities and stockholders’ equity		$200,000		$210,000

 

Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 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. 12.3%.)

GARCIA CORPORATION Condensed Balance Sheets December 31
	2014	2013	Increase (Decrease)	Percentage Change from 2013
Assets
Current Assets	$76,000	$80,000
Property, Plant & Equipment (net)	100,000	90,000
Intangibles	24,000	40,000
Total assets	$200,000	$210,000
Liabilities and Stockholders' Equity
Current Liabilities	$40,000	$48,000
Long-term Liabilities	140,000	150,000
Stockholders' Equity	20,000	12,000
Total liabilities and stockholders' equity	$200,000	$210,000

 (b) Prepare a vertical analysis of the balance sheet data for Garcia Corporation in columnar form for 2014. (Round percentages to 0 decimal places, e.g. 12%.)

GARCIA CORPORATION Condensed Balance Sheet December 31, 2014
	Amount	Percent
Assets
Current Assets	$76,000
Property, Plant, and Equipment (net)	100,000
Intangibles	24,000
Total assets	$200,000
Liabilities and Stockholders' Equity
Current Liabilities	$40,000
Long-term Liabilities	140,000
Stockholders' Equity	20,000
Total liabilities and stockholders' equity	$200,000

Don't show me this message again for the assignment

Click if you would like to Show Work for this question:

Open Show Work

E14-4 The comparative condensed income statements of Hendi Corporation are shown below.

HENDI CORPORATION Comparative Condensed Income Statements For the Years Ended December 31
	2014	2013
Net sales	$600,000	$500,000
Cost of goods sold	468,000	400,000
Gross profit	132,000	100,000
Operating expenses	60,000	54,000
Net income	$ 72,000	$ 46,000

(a) Prepare a horizontal analysis of the income statement data for Hendi Corporation using 2013 as a base. (Show the amounts of increase or decrease.) (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. 12.3%.)

HENDI CORPORATION Condensed Income Statements For the Years Ended December 31
				Increase or (Decrease) During 2013
	2014	2013	Amount	Percentage
Net sales	$600,000	$500,000
Cost of goods sold	468,000	400,000
Gross profit	132,000	100,000
Operating expenses	60,000	54,000
Net income	$72,000	$46,000

(b) Prepare a vertical analysis of the income statement data for Hendi Corporation in columnar form for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)

HENDI CORPORATION Condensed Income Statements For the Years Ended December 31
		2014				2013
	Amount		Percent		Amount		Percent
Net sales	$600,000				$500,000
Cost of goods sold	468,000				400,000
Gross profit	132,000				100,000
Operating expenses	60,000				54,000
Net income	$ 72,000				$ 46,000

WarningOkCancelDon't show me this message again for the assignment
Click if you would like to Show Work for this question: Open Show Work


E14-13 Maulder Corporation has income from continuing operations of $290,000 for the year ended December 31, 2014. It also has the following items (before considering income taxes).
1. An extraordinary loss of $70,000.
2. A gain of $35,000 on the discontinuance of a division.
3. A correction of an error in last year’s financial statements that resulted in a $25,000 understatement of 2013 net income.


Assume all items are subject to income taxes at a 30% tax rate.
Prepare an income statement, beginning with income from continuing operations.

MAULDER CORPORATION Partial Income Statement For the Year Ended December 31, 2014

WarningOkCancelDon't show me this message again for the assignment
Click if you would like to Show Work for this question: Open Show Work


P14-6A The comparative statements of Beulah Company are presented below.

BEULAH COMPANY Income Statement For the Years Ended December 31
		2014		2013
Net sales (all on account)		$500,000		$420,000
Expenses
Cost of goods sold		315,000		254,000
Selling and administrative		120,800		114,800
Interest expense		7,500		6,500
Income tax expense		20,000		15,000
Total expenses		463,300		390,300
Net income		$ 36,700		$ 29,700

 

BEULAH COMPANY Balance Sheets December 31
Assets		2014		2013
Current assets
Cash		$ 21,000		$ 18,000
Short-term investments		18,000		15,000
Accounts receivable (net)		85,000		75,000
Inventory		80,000		60,000
Total current assets		204,000		168,000
Plant assets (net)		423,000		383,000
Total assets		$627,000		$551,000
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$122,000		$110,000
Income taxes payable		12,000		11,000
Total current liabilities		134,000		121,000
Long-term liabilities
Bonds payable		120,000		80,000
Total liabilities		254,000		201,000
Stockholders’ equity
Common stock ($5 par)		150,000		150,000
Retained earnings		223,000		200,000
Total stockholders’ equity		373,000		350,000
Total liabilities and stockholders’ equity		$627,000		$551,000

Additional data:

The common stock recently sold at $19.50 per share.


Compute the following ratios for 2014. (Round Earnings per share and Acid-test ratio to 2 decimal places, e.g. 1.65, and all others to 1 decimal place, e.g. 6.8 or 6.8% .)

(a)	Current ratio	:1
(b)	Acid-test ratio	:1
(c)	Accounts receivable turnover	times
(d)	Inventory turnover	times
(e)	Profit margin	%
(f)	Asset turnover	times
(g)	Return on assets	%
(h)	Return on common stockholders’ equity	%
(i)	Earnings per share
(j)	Price-earnings ratio	times
(k)	Payout ratio	%
(l)	Debt to total assets	%
(m)	Times interest earned	times

Don't show me this message again for the assignment
Click if you would like to Show Work for this question:Open Show Work


File name: week10 homework.doc File type: doc PRICE: $20