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##### Strayer ACC100 ch18 homework

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Question

Brief Exercise 18-2

Schellhammer Corporation reported the following amounts in 2013, 2014, and 2015.

2013

2014

2015

Current assets

\$200,000

\$210,000

\$240,000

Current liabilities

\$150,000

\$168,000

\$184,000

Total assets

\$500,000

\$600,000

\$620,000

(b)

Perform each of the three types of analysis on Schellhammer’s current assets.(Round percentages to 0 decimal places, e.g. 43% and ratios to 2 decimal places, e.g.1.58.)

2013

2014

2015

Horizontal Analysis

Current assets

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%

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%

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%

Vertical Analysis

Current assets

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%

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%

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%

Ratio Analysis

Current ratio

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Brief Exercise 18-3

Using the following data from the comparative balance sheet of Goody Company.

December 31, 2015

December 31, 2014

Accounts receivable

\$520,000

\$400,000

Inventory

\$840,000

\$600,000

Total assets

\$3,000,000

\$2,500,000

Illustrate horizontal analysis.(Round percentages to 0 decimal places, e.g. 12%.)

Increase or (Decrease)

Goody Company

Balance Sheet

December 31, 2015

December 31, 2014

Amount

Percentage

Accounts receivable

\$520,000

\$400,000

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%

Inventory

\$840,000

\$600,000

\$http://edugen.wiley.com/edugen/art2/common/pixel.gif

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%

Total assets

\$3,000,000

\$2,500,000

\$http://edugen.wiley.com/edugen/art2/common/pixel.gif

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%

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Brief Exercise 18-8

Vertical analysis (common size) percentages for Kochheim Company’s sales, cost of goods sold, and expenses are shown below.

Vertical Analysis

2015

2014

2013

Sales

100.0

100.0

100.0

Cost of goods sold

60.2

62.4

63.5

Expenses

25.0

25.6

27.5

(a) Calculate net income.

2015

2014

2013

Net income

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(b) Did Kochheim’s net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period?

Brief Exercise 18-11 (Part Level Submission)

The following data are taken from the financial statements of Rainsberger Company.

2015

2014

Accounts receivable (net), end of year

\$550,000

\$520,000

Net sales on account

3,960,000

3,100,000

Terms for all sales are 1/10, n/60.

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(a1)

Compute for each year the accounts receivable turnover. At the end of 2013, accounts receivable (net) was \$480,000.(Round answers to 1 decimal place, e.g. 1.6.)

2015

2014

Accounts receivable turnover

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times

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times

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(a2)

Compute for each year the average collection period. At the end of 2013, accounts receivable (net) was \$480,000.(Round answers to 1 decimal place, e.g. 1.6.)

2015

2014

Average collection period

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days

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days

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Brief Exercise 18-12 (Part Level Submission)

The following data are from the income statements of Haskin Company.

2015

2014

Sales

\$6,420,000

\$6,240,000

Beginning inventory

940,000

860,000

Purchases

4,340,000

4,661,000

Ending inventory

1,020,000

940,000

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(a1)

Compute for each year the inventory turnover.(Round answers to 1 decimal place, e.g. 1.6.)

2015

2014

Inventory turnover

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times

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times

(a2)

Compute for each year the average days to sell the inventory.(Round answers to 1 decimal place, e.g. 1.6.)

2015

2014

Days in inventory

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days

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days

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(a1)

Attempts: 1 of 3 used

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Brief Exercise 18-13

Guo Company has owners’ equity of \$400,000 and net income of \$66,000. It has a payout ratio of 20% and a return on assets of 15%.

How much did Guo pay in cash dividends, and what were its average assets?(Round answers to 0 decimal places, e.g. 125.)

Cash dividends

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Average assets

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Exercise 18-2

Operating data for Navarro Corporation are presented below.

2015

2014

Net sales

\$750,000

\$600,000

Cost of goods sold

465,000

390,000

Selling expenses

105,000

66,000

60,000

54,000

Income tax expense

36,000

27,000

Net income

84,000

63,000

Prepare a schedule showing a vertical analysis for 2015 and 2014.(Round answers to 1 decimal place, e.g. 48.5%.)

NAVARRO CORPORATION

Condensed Income Statements

For the Years Ended December 31

2015

2014

Amount

Percent

Amount

Percent

Net sales

\$750,000

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%

\$600,000

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%

Cost of goods sold

465,000

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%

390,000

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%

Gross profit

285,000

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%

210,000

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%

Selling expenses

105,000

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%

66,000

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%

60,000

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%

54,000

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%

Total operating expenses

165,000

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%

120,000

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%

Income before income taxes

120,000

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%

90,000

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%

Income taxes expense

36,000

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%

27,000

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%

Net income

\$84,000

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%

\$63,000

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%

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Exercise 18-5

SupposeNordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.

NORDSTORM, INC.

Balance Sheet (partial)

(in millions)

End-of-Year

Beginning-of-Year

Cash and cash equivalents

\$ 795

\$ 72

Accounts receivable (net)

2,035

1,942

Inventory

898

900

Prepaid expenses

88

93

Other current assets

238

210

Total current assets

\$4,054

\$3,217

Total current liabilities

\$2,014

\$1,601

For the year, net sales were \$8,258 and cost of goods sold was \$5,328 (in millions).

(a)

Compute the four liquidity ratios at the end of the year.(Round answers to 1 decimal place, e.g. 1.6 .)

Paper#38468 | Written in 12-Dec-2015

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