ACC/561 ACC 561 WillyPlus Assignment / Week 3

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Question 1

Using these data from the comparative balance sheet of Rosalez Company, perform horizontal analysis. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 0 decimal places, e.g. 12%.)


Question 2

Using these data from the comparative balance sheet of Rosalez Company, perform vertical analysis. (Round percentages to 1 decimal place, e.g. 12.5%.)


Question 3

Vertical analysis (common-size) percentages for Vallejo Company’s sales, cost of goods sold, and expenses are listed here.

Vertical Analysis

 

2012

 

2011

 

2010

Sales

 

100

%

 

100

%

 

100

%

Cost of goods sold

 

62.8

  

63.6

  

66.1

 

Expenses

 

24.3

 

 

26.7

 

 

28.4

 


Did Vallejo’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.


Question 4

Horizontal analysis (trend analysis) percentages for Spartan Company’s sales, cost of goods sold, and expenses are listed here.

Horizontal Analysis

 

2012

 

2011

 

2010

Sales

 

96.2

%

 

104.8

%

 

100.0

%

Cost of goods sold

 

101.0

  

98.0

  

100.0

 

Expenses

 

105.6

  

95.4

  

100.0

 


Explain whether Spartan’s net income increased, decreased, or remained unchanged over the 3-year period.


Question 5

These selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).

  

2009

 

2008

Cash

 

$ 13,606

 

$ 7,669

Accounts receivable

 

23,045

 

19,951

Inventories

 

31,087

 

31,345

Other current assets

 

12,522

 

11,909

Total current assets

 

$ 80,260

 

$ 70,874

Total current liabilities

 

$245,805

 

$326,203

 

(a) Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. .12 : 1.)

 


Question 6

Staples, Inc. is one of the largest suppliers of office products in the United States. It had net income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. What is Staples, Inc.’s asset turnover ratio and profit margin ratio? (Round answers to 2 decimal places, e.g. 1.25 or 2.05%.)

 


Question 7

Selected data taken from a recent year’s financial statements of trading card company Topps Company, Inc. are as follows (in millions).

Net sales

 

$326.7

Current liabilities, beginning of year

 

41.1

Current liabilities, end of year

 

62.4

Net cash provided by operating activities

 

10.4

Total liabilities, beginning of year

 

65.2

Total liabilities, end of year

 

73.2

Capital expenditures

 

3.7

Cash dividends

 

6.2


Compute these ratios: current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Provide a brief interpretation of your results. (Round answers to 2 decimal places, e.g. 0.12.)

 

 

 

 

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