Managerial Accounting 1B Ch13
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Managerial Accounting 1B
Financial and Managerial Accounting
Chapter 13
1.
Exercise 13-3 Computation and analysis of trend percents L.O. P1
| 2013 | 2012 | 2011 | 2010 | 2009 |
Sales | $ 283,880 | $ 271,800 | $ 253,680 | $ 235,560 | $ 151,000 |
Cost of goods sold | 129,200 | 123,080 | 116,280 | 107,440 | 68,000 |
Accounts receivable | 19,100 | 18,300 | 17,400 | 16,200 | 10,000 |
|
Compute trend percents for the above accounts, using 2009 as the base year. (Omit the "%" sign in your response.) |
2.
Exercise 13-7 Common-size percents L.O. P2
Sanderson Company’s year-end balance sheets follow. |
| At December 31 |
|
| 2012 |
|
| 2011 |
|
| 2010 |
| Assets |
|
|
|
|
|
|
|
|
|
| Cash |
| $ | 30,800 |
| $ | 35,625 |
| $ | 36,800 |
| Accounts receivable, net |
|
| 88,500 |
|
| 62,500 |
|
| 49,200 |
| Merchandise inventory |
|
| 111,500 |
|
| 82,500 |
|
| 53,000 |
| Prepaid expenses |
|
| 9,700 |
|
| 9,375 |
|
| 4,000 |
| Plant assets, net |
|
| 277,500 |
|
| 255,000 |
|
| 229,500 |
|
|
| | |
| | |
| | |
| Total assets |
| $ | 518,000 |
| $ | 445,000 |
| $ | 372,500 |
|
|
| | |
| | |
| | |
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
| Accounts payable |
| $ | 128,900 |
| $ | 75,250 |
| $ | 49,250 |
| Long-term notes payable secured by |
|
| 97,500 |
|
| 102,500 |
|
| 82,500 |
| Common stock, $10 par value |
|
| 162,500 |
|
| 162,500 |
|
| 162,500 |
| Retained earnings |
|
| 129,100 |
|
| 104,750 |
|
| 78,250 |
|
|
| | |
| | |
| | |
| Total liabilities and equity |
| $ | 518,000 |
| $ | 445,000 |
| $ | 372,500 |
|
|
| | |
| | |
| | |
|
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.) |
Exercise 13-9 Liquidity analysis and interpretation L.O. P3
[The following information applies to the questions displayed below.]
Sanderson Company’s year-end balance sheets follow. |
| At December 31 |
|
| 2012 |
|
| 2011 |
|
| 2010 |
| Assets |
|
|
|
|
|
|
|
|
|
| Cash |
| $ | 30,800 |
| $ | 35,625 |
| $ | 36,800 |
| Accounts receivable, net |
|
| 88,500 |
|
| 62,500 |
|
| 49,200 |
| Merchandise inventory |
|
| 111,500 |
|
| 82,500 |
|
| 53,000 |
| Prepaid expenses |
|
| 9,700 |
|
| 9,375 |
|
| 4,000 |
| Plant assets, net |
|
| 277,500 |
|
| 255,000 |
|
| 229,500 |
|
|
| | |
| | |
| | |
| Total assets |
| $ | 518,000 |
| $ | 445,000 |
| $ | 372,500 |
|
|
| | |
| | |
| | |
| Liabilities and Equity |
|
|
|
|
|
|
|
|
|
| Accounts payable |
| $ | 128,900 |
| $ | 75,250 |
| $ | 49,250 |
| Long-term notes payable secured by |
|
| 97,500 |
|
| 102,500 |
|
| 82,500 |
| Common stock, $10 par value |
|
| 162,500 |
|
| 162,500 |
|
| 162,500 |
| Retained earnings |
|
| 129,100 |
|
| 104,750 |
|
| 78,250 |
|
|
| | |
| | |
| | |
| Total liabilities and equity |
| $ | 518,000 |
| $ | 445,000 |
| $ | 372,500 |
|
|
| | |
| | |
| | |
|
The company’s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit: |
For Year Ended December 31 | 2012 | 2011 | |||||||||
Sales |
|
|
| $ | 672,500 |
|
|
|
| $ | 530,000 |
Cost of goods sold | $ | 410,225 |
|
| $ | 344,500 |
|
| |||
Other operating expenses | 208,550 |
|
| 133,980 |
|
| |||||
Interest expense |
| 11,100 |
|
|
|
|
| 12,300 |
|
|
|
Income taxes |
| 8,525 |
|
|
|
|
| 7,845 |
|
|
|
| | |
|
|
|
| | |
|
|
|
Total costs and expenses |
|
|
|
| 638,400 |
|
|
|
|
| 498,625 |
|
|
|
| | |
|
|
|
| | |
Net income |
|
|
| $ | 34,100 |
|
|
|
| $ | 31,375 |
|
|
|
| | |
|
|
|
| | |
Earnings per share |
|
|
| $ | 2.10 |
|
|
|
| $ | 1.93 |
|
|
|
| | |
|
|
|
| | |
|
Section Break | Exercise 13-9 Liquidity analysis and interpretation L.O. P3 |
|
3.
Exercise 13-9 Part 1
(1) | Compute days' sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.) |
4.
Exercise 13-9 Part 2
(2) | Compute accounts receivable turnover. (Round your answers to 1 decimal place.) |
|
|
2012 |
|
2011 |
|
|
5.
Exercise 13-9 Part 3
(3) | Compute inventory turnover. (Round your answers to 1 decimal place.) |
6.
Exercise 13-9 Part 4
(4) | 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.) |
|
|
2012 |
|
2011 |
|
|
Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3
[The following information applies to the questions displayed below.]
Selected comparative financial statements of Bennington Company follow: |
|
BENNINGTON COMPANY | ||||||||||||
Comparative Income Statements | ||||||||||||
For Years Ended December 31, 2012, 2011, and 2010 | ||||||||||||
|
|
| 2012 |
|
|
| 2011 |
|
|
| 2010 |
|
Sales |
| $ | 444,000 |
|
| $ | 340,000 |
|
| $ | 236,000 |
|
Cost of goods sold |
|
| 267,288 |
|
|
| 212,500 |
|
|
| 151,040 |
|
|
| | |
|
| | |
|
| | |
|
Gross profit |
|
| 176,712 |
|
|
| 127,500 |
|
|
| 84,960 |
|
Selling expenses |
|
| 62,694 |
|
|
| 46,920 |
|
|
| 31,152 |
|
Administrative expenses |
|
| 40,137 |
|
|
| 29,920 |
|
|
| 19,470 |
|
|
| | |
|
| | |
|
| | |
|
Total expenses |
|
| 102,831 |
|
|
| 76,840 |
|
|
| 50,622 |
|
|
| | |
|
| | |
|
| | |
|
Income before taxes |
|
| 73,881 |
|
|
| 50,660 |
|
|
| 34,338 |
|
Income taxes |
|
| 13,764 |
|
|
| 10,370 |
|
|
| 6,962 |
|
|
| | |
|
| | |
|
| | |
|
Net income |
| $ | 60,117 |
|
| $ | 40,290 |
|
| $ | 27,376 |
|
|
| | |
|
| | |
|
| | |
|
|
BENNINGTON COMPANY | ||||||||||||
Comparative Balance Sheets | ||||||||||||
December 31, 2012, 2011, and 2010 | ||||||||||||
|
|
| 2012 |
|
|
| 2011 |
|
|
| 2010 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
| $ | 48,480 |
|
| $ | 37,924 |
|
| $ | 50,648 |
|
Long-term investments |
|
| 0 |
|
|
| 500 |
|
|
| 3,720 |
|
Plant assets, net |
|
| 90,000 |
|
|
| 96,000 |
|
|
| 57,000 |
|
|
| | |
|
| | |
|
| | |
|
Total assets |
| $ | 138,480 |
|
| $ | 134,424 |
|
| $ | 111,368 |
|
|
| | |
|
| | |
|
| | |
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
| $ | 20,200 |
|
| $ | 19,960 |
|
| $ | 19,480 |
|
Common stock |
|
| 72,000 |
|
|
| 72,000 |
|
|
| 54,000 |
|
Other paid-in capital |
|
| 9,000 |
|
|
| 9,000 |
|
|
| 6,000 |
|
Retained earnings |
|
| 37,280 |
|
|
| 33,464 |
|
|
| 31,888 |
|
|
| | |
|
| | |
|
| | |
|
Total liabilities and equity |
| $ | 138,480 |
|
| $ | 134,424 |
|
| $ | 111,368 |
|
|
| | |
|
| | |
|
| | |
|
|
|
|
|
7.
Problem 13-1A Part 1
Required: | |
1. | Compute each year's current ratio. (Round your answers to 1 decimal place.) |
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|
|
|
|
Current ratio | December 31, 2012: |
|
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Current ratio | December 31, 2011: |
|
|
|
Current ratio | December 31, 2010: |
|
|
|
|
8.
Problem 13-1A Part 2
2. | Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the "%" sign in your response.) |
9.
Problem 13-1A Part 3
3. | 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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