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accounting problems with all solutions




Question;Illustration 2-9;Financial ratio classifications;A single ratio by itself is not very meaningful.;Accordingly, in this and the following chapters, we will use various;comparisons to shed light on company performance;1. Intracompany comparisons covering two;years for the same company.;2. Industry-average comparisons based on;average ratios for particular industries.;3. Intercompany comparisons based on;comparisons with a competitor in the same industry;Question 1;Using these data from the comparative balance sheet of;Rosalez Company, perform horizontal analysis. (If amount and percentage are a;decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%).;Round percentages to 0 decimal places, e.g. 12%.);Increase;or (Decrease);Dec.;31, 2012 Dec. 31;2011 Amount Percentage;Accounts receivable $;545,500 $;393,400 $;%;Inventory $;820,400 $;604,600 $;%;Total assets $3,146,500 $2,742,100 $;%;Question 2;Using these data from the comparative balance sheet of;Rosalez Company, perform vertical analysis. (Round percentages to 1 decimal;place, e.g. 12.5%.);Dec.;31, 2012 Dec. 31;2011;Amount Percentage Amount Percentage;Accounts receivable $;543,900;% $ 417,700;%;Inventory $;821,700;% $ 617,000;%;Total assets $3,175,700;% $2,787,300;%;Question 3;Vertical analysis (common-size) percentages for Vallejo;Company?s sales, cost of goods sold, and expenses are listed here.;Vertical Analysis 2012 2011 2010;Sales 100 % 100 % 100 %;Cost of goods sold 60.8 63.8 66.4;Expenses 24.7 27.8 28.8;Did Vallejo?s net income as a percent of sales increase;decrease, or remain unchanged over the 3-year period? Provide numerical support;for your answer.;Question 4;Horizontal analysis (trend analysis) percentages for Spartan;Company?s sales, cost of goods sold, and expenses are listed here.;Horizontal Analysis 2012 2011 2010;Sales 96.2 % 104.8 % 100.0 %;Cost of goods sold 101.0 98.0 100.0;Expenses 105.6 95.4 100.0;Explain whether Spartan?s net income increased, decreased;or remained unchanged over the 3-year period.;Question 5;These selected condensed data are taken from recent balance;sheets of Bob Evans Farms (in thousands).;2009 2008;Cash $;13,606 $;7,669;Accounts receivable 23,045 19,951;Inventories 31,087 31,345;Other current assets 12,522 11,909;Total current assets $;80,260 $;70,874;Total current liabilities $245,805 $326,203;(a);Compute the current ratio for each year. (Round answers to 2;decimal places, e.g..12: 1.);2009 2008;Current ratio;1;1;Question 6;Staples, Inc. is one of the largest suppliers of office;products in the United States. It had net income of $738.7 million and sales of;$24,275.5 million in 2009. Its total assets were $13,073.1 million at the beginning;of the year and $13,717.3 million at the end of the year. What is Staples;Inc.?s asset turnover ratio and profit margin ratio? (Round answers to 2;decimal places, e.g. 1.25 or 2.05%.);Asset turnover ratio;times;Profit margin ratio;%;Question 7;Selected data taken from a recent year?s financial;statements of trading card company Topps Company, Inc. are as follows (in;millions).;Net sales $326.7;Current liabilities, beginning of year 41.1;Current liabilities, end of year 62.4;Net cash provided by operating activities 10.4;Total liabilities, beginning of year 65.2;Total liabilities, end of year 73.2;Capital expenditures 3.7;Cash dividends 6.2;Compute these ratios: current cash debt coverage ratio, cash;debt coverage ratio, and free cash flow. Provide a brief interpretation of your;results. (Round answers to 2 decimal places, e.g. 0.12.);Current cash debt coverage ratio;times;Cash debt coverage ratio;times;Free Cash Flow $;millions


Paper#42850 | Written in 18-Jul-2015

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