Details of this Paper

ACC Final Exam

Description

solution


Question

Question;FINAL EXAM;ACC/400;S. Duhn;The condensed;financial statements of Westward Corporation for 2006 are presented below.;Westward Corporation Westward;Corporation;Balance Sheet Income;Statement;December 31, 2006 For the Year;Ended December 31, 2006;Assets Revenues $2,000,000;Current assets Expenses;Cash and temporary Cost of goods sold 1,080,000;investments $ 30,000 Selling;and administrative;Accounts receivable 70,000 expenses 495,000;Inventories;120,000 Interest;expense 30,000;Total current assets 220,000 Total expenses;1,605,000;Property, plant;and Income;before income taxes 395,000;equipment (net);780,000 Income tax;expense 140,000;Total assets $1,000,000 Net income $ 255,000;Liabilities and Stockholders;Equity;Current;liabilities $ 80,000;Long-term;liabilities 300,000;Common;stockholders' equity 620,000;Total liabilities and;stockholders' equity $1,000,000;Westward;Corporation Westward;Corporation;Balance Sheet Income;Statement;December 31, 2005 For the Year;Ended December 31, 2005;Assets Revenues $2,500,000;Current assets Expenses;Cash and temporary Cost of goods sold 1,750,000;investments $ 40,000 Selling;and administrative;Accounts receivable 90,000 expenses 500,000;Inventories;150,000 Interest;expense 30,000;Total current assets 280,000 Total expenses;2,280,000;Property, plant;and Income;before income taxes 220,000;equipment (net);800,000 Income tax;expense 77,000;Total assets $1,080,000 Net income $ 143,000;Liabilities and Stockholders;Equity;Current;liabilities $ 140,000;Long-term;liabilities 320,000;Common;stockholders' equity 620,000;Total liabilities and;stockholders' equity $1,080,000;Additional data as of December 31, 2004: Inventory =;$100,000, Total assets = $900,000, Common stockholders' equity = $540,000.;Instructions1. Compute the following listed;ratios for 2006 and 2005 showing;supporting calculations.;(a) Current ratio = __________________________________________________________.;(b) Debt to total assets = _____________________________________________________.;(c) Times interest earned = ___________________________________________________.;(d) Inventory turnover = _____________________________________________________.;(e) Profit margin ratio = ______________________________________________________.;(f) Return on common stockholders' equity = ____________________________________.;(g) Return on assets = _______________________________________________________.2.Perform;horizontal and vertical analysis on Westward both income statement and;balance sheet, show your results.3.Assess;the financial performance of Westward, given the analysis tools used;above.

 

Paper#39834 | Written in 18-Jul-2015

Price : $57
SiteLock