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acg2071-accounting problems with all solutions

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Question;GERALDO CORPORATION;Comparative Income Statements;For Years Ended December 31, 2011 and 2010;2011;2010;Sales;$;676,000;$;520,000;Cost of;goods sold;405,600;312,000;Gross;profit;270,400;208,000;Operating expenses;156,000;104,000;Net income;$;114,400;$;104,000;Express the above comparative income statements in common-size;percents.(Round;your answers to 1 decimal place. Omit the "%" sign in your;response.);2011;2010;Sales;100.0;%;100.0;%;Cost of;goods sold;Gross;profit;Operating;expenses;Net income;%;%;The company's;situation in the most recent year has;Remained;unchanged;Improved;Worsened;2.;Common-Size Percents;Trend Percents;2012;2011;2010;2012;2011;2010;Sales;100.0;%;100.0;%;100.0;%;104.5;%;103.3;%;100.0;%;Cost of;goods sold;62.5;61.0;58.2;102.1;108.2;100.0;Total;expenses;14.3;13.8;14.1;106.1;101.1;100.0;Determine net income;as a percent of sales for the following years.(Round your intermediate;calculations to 1 decimal place and final answers to 2 decimal places.;Omit the "%" sign in your response.);Years;Net income;2010;%;2011;%;2012;%;Should the net;income increased, decreased, or remained unchanged in this three-year period.;Remained;unchanged;Net income;increased;Net income;decreased;3.;Sanderson Company?s;year-end balance sheets follow.;At December 31;2012;2011;2010;Assets;Cash;$;28,553;$;33,376;$;33,390;Accounts receivable;net;80,297;57,251;46,355;Merchandise inventory;100,959;74,889;48,386;Prepaid expenses;8,922;8,761;3,939;Plant assets, net;260,428;238,791;215,630;Total assets;$;479,159;$;413,068;$;347,700;Liabilities and Equity;Accounts payable;$;115,731;$;68,412;$;46,814;Long-term notes;payable secured by;mortgages on plant assets;90,082;94,056;75,305;Common stock, $10 par;value;162,500;162,500;162,500;Retained earnings;110,846;88,100;63,081;Total liabilities and;equity;$;479,159;$;413,068;$;347,700;The company?s income;statements for the years ended December 31, 2012 and 2011, follow.;For Year Ended December 31;2012;2011;Sales;$;622,907;$;491,551;Cost of;goods sold;$;379,973;$;319,508;Other;operating expenses;193,101;124,362;Interest;expense;10,589;11,306;Income;taxes;8,098;7,373;Total;costs and expenses;591,761;462,549;Net income;$;31,146;$;29,002;Earnings;per share;$;1.92;$;1.78;Additional information;about the company follows.;Common;stock market price, December 31, 2012;$32.00;Common;stock market price, December 31, 2011;30.00;Annual;cash dividends per share in 2012;0.26;Annual;cash dividends per share in 2011;0.13;To help evaluate the;company's profitability, compute the following ratios for 2012 and 2011;(1);Return on common;stockholders' equity.(Do not round intermediate calculations and round your;final answers to 1 decimal place. Omit the "%" sign in;your response.);2012;%;2011;%;(2);Price-earnings ratio;on December 31.(Round your answers to 1 decimal place.);2012;2011;(3);Dividend yield.(Round your answers to 1;decimal place. Omit the "%" sign in your response.);2012;%;2011;%;4.;2013;2012;2011;2010;2009;Sales;$ 582,382;$ 378,170;$ 297,772;$ 205,360;$ 151,000;Cost of;goods sold;293,641;190,685;152,336;104,630;75,500;Accounts;receivable;28,362;22,161;20,457;11,972;10,343;Compute trend percents;for the above accounts, using 2009 as the base year.(Round your answers to;the nearest whole percent. Omit the "%" sign in your response.);2013;2012;2011;2010;2009;Sales;%;%;%;%;100%;Cost of;goods sold;%;%;%;%;100%;Accounts;receivable;%;%;%;%;100%;5.;Sanderson Company?s;year-end balance sheets follow.;At December 31;2012;2011;2010;Assets;Cash;$;27,330;$;32,598;$;32,951;Accounts receivable;net;82,443;58,187;44,378;Merchandise inventory;99,592;76,137;46,786;Prepaid expenses;8,891;8,386;3,772;Plant assets, net;254,414;232,166;208,313;Total assets;$;472,670;$;407,474;$;336,200;Liabilities and Equity;Accounts payable;$;116,518;$;70,240;$;43,491;Long-term notes;payable secured by;mortgages on plant assets;91,528;92,782;74,300;Common stock, $10 par;value;162,500;162,500;162,500;Retained earnings;102,124;81,952;55,909;Total liabilities and;equity;$;472,670;$;407,474;$;336,200;(1);Compute the current ratio for the year ended 2012, 2011, and;2010.(Round;your answers to 2 decimal places.);2012;to;2011;to;2010;to;(2);Compute the acid-test ratio for the year ended 2012, 2011, and;2010.(Round;your answers to 2 decimal places.);2012;to;2011;to;2010;to;6.;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;$;493,386;$;377,974;$;262,300;Cost of goods sold;297,018;237,368;167,872;Gross profit;196,368;140,606;94,428;Selling expenses;70,061;52,160;34,624;Administrative;expenses;44,405;33,262;21,771;Total expenses;114,466;85,422;56,395;Income before taxes;81,902;55,184;38,033;Income taxes;15,234;11,313;7,721;Net income;$;66,668;$;43,871;$;30,312;BENNINGTON;COMPANY;Comparative;Balance Sheets;December;31, 2012, 2011, and 2010;2012;2011;2010;Assets;Current assets;$;52,110;$;40,770;$;54,499;Long-term investments;0;600;3,030;Plant assets, net;96,775;103,203;62,250;Total assets;$;148,885;$;144,573;$;119,779;Liabilities and Equity;Current liabilities;$;21,737;$;21,541;$;20,961;Common stock;72,000;72,000;54,000;Other paid-in capital;9,000;9,000;6,000;Retained earnings;46,148;42,032;38,818;Total liabilities and;equity;$;148,885;$;144,573;$;119,779;6.;value:10.00 points;Problem 13-1A Part 1;Required;1.;Compute each year's current;ratio. (Round your answers to 1 decimal;place.);Current;ratio;December;31, 2012;to;Current;ratio;December;31, 2011;to;Current;ratio;December;31, 2010;to;7.;value:10.00 points;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.);BENNINGTON;COMPANY;Common-Size Comparative Income Statements;For Years Ended December 31, 2012, 2011, and 2010;2012;2011;2010;Sales;%;%;%;Cost of goods sold;Gross profit;Selling expenses;Administrative;expenses;Total expenses;Income before taxes;Income taxes;Net income;%;%;%;8.;value:10.00 points;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.);BENNINGTON;COMPANY;Balance Sheet Data in Trend Percents;December 31, 2012, 2011, and 2010;2012;2011;2010;Assets;Current assets;%;%;%;Long-term investments;Plant assets;Total assets;Liabilities and Equity;Current liabilities;%;%;%;Common stock;Other contributed;capital;Retained earnings;Total liabilities and;equity;9.;Park Corporation began;the month of May with $700,000 of current assets, a current ratio of 2.30:1;and an acid-test ratio of 1.20:1. During the month, it completed the;following transactions (the company uses a perpetual inventory system).;May;2;Purchased;$55,000 of merchandise inventory on credit.;8;Sold merchandise;inventory that cost $50,000 for $150,000 cash.;10;Collected;$29,000 cash on an account receivable.;15;Paid $24,000;cash to settle an account payable.;17;Wrote off a;$5,000 bad debt against the Allowance for Doubtful Accounts account.;22;Declared a $1;per share cash dividend on its 70,000 shares of outstanding common stock.;26;Paid the;dividend declared on May 22.;27;Borrowed $85,000;cash by giving the bank a 30-day, 10% note.;28;Borrowed $115,000;cash by signing a long-term secured note.;29;Used the;$200,000 cash proceeds from the notes to buy new machinery.;Required;Prepare a table;showing Park?s (1) current ratio, (2) acid-test ratio, and (3) working;capital, after each transaction.(Do not round intermediate calculations. Round;your ratios to 2 decimal places and the working capitals to nearest dollar;amount. Omit the "$" sign in your response.);Transaction;Current Ratio;Acid-Test Ratio;Working Capital;Beginning;$;May 2;May 8;May 10;May 15;May 17;May 22;May 26;May 27;May 28;May 29;$;10.;Selected year-end;financial statements of McCord Corporation follow. (All sales were on credit;selected balance sheet amounts at December 31, 2010, were inventory, $51,900;total assets, $219,400, common stock, $95,000, and retained earnings;$52,948.);McCORD CORPORATION;Income Statement;For Year Ended December 31, 2011;Sales;$;451,600;Cost of;goods sold;297,650;Gross;profit;153,950;Operating;expenses;98,800;Interest;expense;3,900;Income;before taxes;51,250;Income;taxes;20,646;Net income;$;30,604;McCORD CORPORATION;Balance Sheet;December 31, 2011;Assets;Liabilities;and Equity;Cash;$;10,000;Accounts;payable;$;21,500;Short-term;investments;8,200;Accrued;wages payable;2,800;Accounts;receivable, net;31,400;Income;taxes payable;4,400;Notes;receivable (trade)*;3,500;Long-term;note payable, secured;Merchandise;inventory;38,150;by;mortgage on plant assets;63,400;Prepaid;expenses;2,600;Common;stock;95,000;Plant;assets, net;151,300;Retained;earnings;58,050;Total;assets;$;245,150;Total;liabilities and equity;$;245,150;* These are short-term;notes receivable arising from customer (trade) sales.;Required;Compute the;following.(Use 365 days a year. Do not round intermediate calculations and;round your final answers to 1 decimal place. Omit the "%" sign in your;response);(1);Current;ratio;to;(2);Acid-test;ratio;to;(3);Days;sales uncollected;days;(4);Inventory;turnover;times;(5);Days;sales in inventory;days;(6);Debt-to-equity;ratio;to;(7);Times;interest earned;times;(8);Profit;margin ratio;%;(9);Total;asset turnover;times;(10);Return on;total assets;%;(11);Return on;common stockholders' equity;%;14.

 

Paper#42837 | Written in 18-Jul-2015

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