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Comparative Income Statement

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Hello again. I would like to deal with you again. Since you did a great job for me last time.;I am having a problem doing this practice assignment. Attached is everything that is required to do the assignment. The only parts I was able to do is filling in the amounts.;I need Problem Set A: 23-1A, 23-2A and 23-3A completely finished by November 22nd no later than 9 PM EST.;Attachment Preview;practice assignment.xls Download Attachment;Student Name;Class;Problem 23.01A;THE LACAL COMPANY;Comparative Income Statement;For the Years Ended December 31, 2013 and 2012;Percent;of Sales;2012;Increase;or Decrease;Amount;Percent;Percent of;Total Assets;2013;2012;Increase;or Decrease;Amount;Percent;Amounts;Revenue;Sales;Less Sales Returns and Allowances;Net Sales;2013;905,000;15,000;890,000;2012;765,000;9,000;756,000;Cost of Goods Sold;Merchandise Inventory, January 1;Net Purchases;Total Merchandise Available for Sale;Less Merchandise Inventory, December 31;Cost of Goods Sold;84,000;306,000;390,000;86,000;304,000;80,000;262,000;342,000;84,000;258,000;Gross Profit on Sales;586,000;498,000;Operating Expenses;Selling Expenses;Sales Salary Expenses;Payroll Tax-Expense-Selling;Other Selling Expenses;Total Selling Expenses;87,000;8,700;25,200;120,900;80,000;8,000;15,200;103,200;General and Administrative Expenses;Officers Salary Expense;Payroll Tax Expense-Administrative;Depreciation Expense;Other General and Administrative Expenses;Total General and Administrative Expenses;130,000;13,000;8,250;9,450;160,700;110,000;11,000;8,250;7,000;136,250;Total Operating Expenses;281,600;239,450;Net Income Before Income Taxes;304,400;91,320;213,080;258,550;77,565;180,985;Net Income After Income Taxes;Correct!;2013;Correct!;THE LACAL COMPANY;Comparative Balance Sheet;December 31, 2013 and 2012;Assets;Current Assets;Cash;Accounts Receivable;Merchandise Inventory;Prepaid Expenses;Supplies;Total Current Assets;Property, Plant, and Equipment;Land;Building and Equipment;Less Accumulated Depreciation;Net-Book Value-Building and Equipment;Total Property, Plant, and Equipment;Total Assets;Amounts;2013;111,022;95,000;86,000;9,500;1,200;302,722;2012;46,275;87,500;84,000;5,000;500;223,275;75,000;82,500;(33,000);49,500;124,500;75,000;82,500;24,750;57,750;132,750;427,222;Correct!;356,025;Correct!;Liabilities and Stockholders' Equity;Current Liabilities;Accounts Payable;Sales Tax Payable;Payroll Taxes Available;Income Taxes Payable;Total Current Liabilities;27,000;1,000;1,142;1,000;30,142;57,000;3,000;1,025;5,000;66,025;Long-Term Liabilities;Mortgage Payable;Total Long-Term Liabilities;39,000;39,000;45,000;45,000;Total Liabilities;69,142;111,025;10,000;10,000;338,080;358,080;10,000;10,000;225,000;245,000;Stockholders' Equity;Common Stock ($1 par, 10,000 shares authorized;10,000 shares issued and outstanding);Paid-in Captial-Common Stock;Retained Earnings;Total Stockholders' Equity;Total Liabilities and Stockholders' Equity;427,222;Correct!;356,025;Correct!;(35,883);Given Data P23.01A;THE LACAL COMPANY;Comparative Income Statement;For the Years Ended December 31, 2013 and 2012;Revenue;Sales;Less Sales Returns and Allowances;Net Sales;2013;905,000;15,000;890,000;2012;765,000;9,000;756,000;Cost of Goods Sold;Merchandise Inventory, January 1;Net Purchases;Total Merchandise Available for Sale;Less Merchandise Inventory, December 31;Cost of Goods Sold;Gross Profit on Sales;84,000;306,000;390,000;86,000;304,000;586,000;80,000;262,000;342,000;84,000;258,000;498,000;Operating Expenses;Selling Expenses;Sales Salaries Expense;Payroll Tax Expense-Selling;Other Selling Expenses;Total Selling Expenses;87,000;8,700;25,200;120,900;80,000;8,000;15,200;103,200;General and Administrative Expenses;Officers Salaries Expense;Payroll Tax Expense-Administrative;Depreciation Expense;Other General and Administrative Expenses;Total General and Administrative Expenses;130,000;13,000;8,250;9,450;160,700;110,000;11,000;8,250;7,000;136,250;Total Operating Expenses;281,600;239,450;Net Income Before Income Taxes;Income Tax Expense;Net Income After Income Taxes;304,400;91,320;213,080;258,550;77,565;180,985;THE LACAL COMPANY;Comparative Balance Sheet;December 31, 2013 and 2012;Assets;Current Assets;Cash;Accounts Receivable;Merchandise Inventory;Prepaid Expenses;Supplies;Total Current Assets;111,022;95,000;86,000;9,500;1,200;302,722;46,275;87,500;84,000;5,000;500;223,275;Property, Plant, and Equipment;Land;Building and Equipment;Less Accumulated Depreciation;Net Book Value-Building and Equipment;Total Property, Plant, and Equipment;75,000;82,500;(33,000);49,500;124,500;75,000;82,500;(24,750);57,750;132,750;Total Assets;427,222;356,025;Liabilities and Stockholders' Equity;Current Liabilities;Accounts Payable;Sales Tax Payable;Payroll Taxes Payable;Income Taxes Payable;Total Current Liabilities;27,000;1,000;1,142;1,000;30,142;57,000;3,000;1,025;5,000;66,025;Long-Term Liabilities;Mortgage Payable;Total Long-Term Liabilities;39,000;39,000;45,000;45,000;Total Liabilities;69,142;111,025;Stockholders' Equity;Common Stock ($1 par, 10,000 shares authorized;10,000 shares issued and outstanding);Paid-in-Capital - Common Stock;Retained Earnings;Total Stockholders' Equity;10,000;10,000;338,080;358,080;10,000;10,000;225,000;245,000;Total Liabilities and Stockholders' Equity;427,222;356,025;Student Name;Class;Problem 23.02A;Part I;THE LACAL COMPANY;Financial Ratios;2013;2012;Current Ratio;=;Current Assets;Current Liabilities;=;=;Acid Test Ratio;=;Cash + Receivables + Marketable Securities;Current Liabilities;=;=;=;Inventory Turnover;=;Cost of Goods Sold;Average Merchandise Inventory;=;=;=;Return on Sales;=;Net Income after Taxes;Net Sales;=;=;=;Earnings per share of;Common Stock;=;Net Income after Taxes - Preferred Dividend Requirement;Average number of shares of Common Stock;=;=;=;Book Value per Share of;Common Stock;=;Total Stockholders' Equity - Equity of Preferred Stock;Number of Common Stock shares outstanding;=;=;=;Return on Total Assets;=;Net Income before interest and taxes;Total Assets;=;=;=;Ratio of Stockholder's Equity;=;to Total Equities;Stockholders' Equity;Total Equities;=;=;=;Rate of Net Income on Total;=;Stockholders' Equity;Net Income;Stockholders' Equity;=;=;=;Net Sales;Total Assets;=;=;=;Asset Turnover;=;Part II;1. Rate of return on stockholders' equity;2. Stockholders' equity to total equities;3. Asset turnover;4. Merchandise inventory turnover;Analyze: Expected return on sales if net sales and net income after taxes increase by 5% in 2014;1;=;1;Given Data P23.02A;THE LACAL COMPANY;Comparative Income Statement;For the Years Ended December 31, 2013 and 2012;Revenue;Sales;Less Sales Returns and Allowances;Net Sales;2013;905,000;15,000;890,000;2012;765,000;9,000;756,000;Cost of Goods Sold;Merchandise Inventory, January 1;Net Purchases;Total Merchandise Available for Sale;Less Merchandise Inventory, December 31;Cost of Goods Sold;Gross Profit on Sales;84,000;306,000;390,000;86,000;304,000;586,000;80,000;262,000;342,000;84,000;258,000;498,000;Operating Expenses;Selling Expenses;Sales Salaries Expense;Payroll Tax Expense-Selling;Other Selling Expenses;Total Selling Expenses;87,000;8,700;25,200;120,900;80,000;8,000;15,200;103,200;General and Administrative Expenses;Officers Salaries Expense;Payroll Tax Expense-Administrative;Depreciation Expense;Other General and Administrative Expenses;Total General and Administrative Expenses;130,000;13,000;8,250;9,450;160,700;110,000;11,000;8,250;7,000;136,250;Total Operating Expenses;281,600;239,450;Net Income Before Income Taxes;Income Tax Expense;Net Income After Income Taxes;304,400;91,320;213,080;258,550;77,565;180,985;THE LACAL COMPANY;Comparative Balance Sheet;December 31, 2013 and 2012;Assets;Current Assets;Cash;Accounts Receivable;Merchandise Inventory;Prepaid Expenses;Supplies;Total Current Assets;111,022;95,000;86,000;9,500;1,200;302,722;46,275;87,500;84,000;5,000;500;223,275;Property, Plant, and Equipment;Land;Building and Equipment;Less Accumulated Depreciation;Net Book Value-Building and Equipment;Total Property, Plant, and Equipment;75,000;82,500;(33,000);49,500;124,500;75,000;82,500;(24,750);57,750;132,750;Total Assets;427,222;356,025;Liabilities and Stockholders' Equity;Current Liabilities;Accounts Payable;Sales Tax Payable;Payroll Taxes Payable;Income Taxes Payable;Total Current Liabilities;27,000;1,000;1,142;1,000;30,142;57,000;3,000;1,025;5,000;66,025;Long-Term Liabilities;Mortgage Payable;Total Long-Term Liabilities;39,000;39,000;45,000;45,000;Total Liabilities;69,142;111,025;Stockholders' Equity;Common Stock ($1 par, 10,000 shares authorized;10,000 shares issued and outstanding);Paid-in-Capital - Common Stock;Retained Earnings;Total Stockholders' Equity;10,000;10,000;338,080;358,080;10,000;10,000;225,000;245,000;Total Liabilities and Stockholders' Equity;427,222;356,025;Additional Information;Selected ratios for other common-size companies in the same industry;1. Rate of return on stockholders' equity;45%;2. Stockholders' equity to total equities;0.6 to 1;3. Asset turnover;2.5 to 1;4. Merchandise inventory turnover;4.5 times;Student Name;Class;Problem 23.03A;FIVE, INC. and SIX, INC.;Financial Ratios;Five, Inc.;a.;b.;c.;d.;e.;f.;g.;h.;Rate of Return on Net Sale;Six, Inc.;=;=;=;=;Rate of Return on Total Assets =;=;=;=;Rate of Return on;Stockholders' Equity;=;=;=;=;Earnings per share;=;=;=;=;Stockholder's Equity to Total;=;Equities;=;=;=;Current Ratio;=;=;=;=;Asset Turnover;=;=;=;=;Book Value per Share of;Common Stock;=;=;=;=;2. Comment on similarities or differences in the two companies' ratios.;3. From the investors' point of view, is one company more at risk than the other?;4. Would you grant a five-year loan to either company? Explain.;Analyze: Discuss the implications to the rate of return on sales and earnings per share if the company can cut cost of goods by 5% in 2014;while maintaining net sales and operating expenses at 2013 levels. Assume a tax rate of 25%.;Sales;Cost of Goods Sold;Gross Profit;Operating Expenses;Net Income from Operations;Interest Expense;Net Income Before Income Taxes;Income Tax;Net Income After Income Tax;Given Data P23.03A;FIVE, INC. and SIX, INC.;Condensed Financial Statements;Income Statements;Year Ended December 31, 2013;Five, Inc.;$795,000;505,000;290,000;169,500;120,500;10,000;110,500;27,625;$82,875;Sales (net);Cost of Goods Sold;Gross Profit;Operating Expenses;Net Income From Operations;Interest Expense;Net Income Before Income Taxes;Income Tax;Net Income After Income Taxes;Six, Inc.;$650,000;350,000;300,000;125,000;175,000;175,000;43,750;$131,250;Five, Inc.;$125,000;225,000;$350,000;Six, Inc.;$104,900;196,000;$300,900;$98,500;100,000;198,500;$79,800;79,800;20,000;131,500;151,500;$350,000;20,000;201,100;221,100;$300,900;Balance Sheets;December 31, 2013;Assets;Current Assets;Property, Plant, and Equipment (net);Total Assets;Liabilities and Stockholders' Equity;Liabilities;Current Liabilities;Total Long-Term Liabilities (Bonds Payable);Total Liabilities;Stockholders' Equity;Common Stock ($10 par value);Retained Earnings;Total Stockholders' Equity;Total Liabilities and Stockholders' Equity

 

Paper#19325 | Written in 18-Jul-2015

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