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BU330 Accounting for Managers assignment 8

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Question;BU330 Accounting for Managers assignment 8;Directions: Be sure to make an;electronic copy of your answer before submitting it to Ashworth College;for grading. Unless otherwise stated, answer in complete sentences, and;be sure to use correct English spelling and grammar. Sources must be;cited in APA format. Your response should be a minimum of one (1);single-spaced page to a maximum of two (2) pages in length, refer to;the "Assignment Format" page for specific format requirements.;Horizontal and Vertical Analysis;Sanborn Corporation?s condensed comparative;income statements for 20x8 and 20x7 appear below. The corporation?s condensed comparative;balance sheets for 20x8 and 20x7 appear on the next page.;Sanborn Corporation;Comparative Income Statements;For the Years Ended December 31, 20x8 and 20x7;(in thousands of dollars);20x8;20x7;Net sales;$3,276,800;$3,146,400;Cost of goods sold;2,088,800;2,008,400;Gross margin;$1,188,000;$1,138,000;Operating expenses;Selling expenses;$ 476,800;$ 518,000;Administrative expenses;447,200;423,200;Total operating expenses;$ 924,000;$ 941,200;Income from operations;$ 264,000;$ 196,800;Interest expense;65,600;39,200;Income before income taxes;$ 198,400;$ 157,600;Income taxes expense;62,400;56,800;Net income;$ 136,000;$ 100,800;Earnings per share;$3.40;$2.52;Sanborn Corporation;Comparative Balance Sheets;December 31, 20x8 and 20x7;20x8;20x7;Assets;Cash;$;81,200;$;40,800;Accounts receivable (net);235,600;229,200;Inventory;574,800;594,800;Property, plant, and;equipment (net);750,000;720,000;Total assets;$1,641,600;$1,584,800;Liabilities;and Stockholders' Equity;Accounts payable;$;267,600;$;477,200;Notes payable (short-term);200,000;400,000;Bonds payable;400,000;?;Common stock, $10 par value;400,000;400,000;Retained earnings;374,000;307,600;Total liabilities and;stockholders' equity;$1,641,600;$1,584,800;1. Prepare;schedules showing the amount and percentage changes from 20x7 to 20x8 for the;comparative income statements and the balance sheets. You may use the forms below. (40 points);Sanborn Corporation;Comparative Income Statements;For the Years Ended December 31, 20x8 and 20x7;(in thousands of dollars);20x8;20x7;Increase or Decrease;Amount;Percentage;Net sales;$3,276,800;$3,146,400;Cost of goods sold;2,088,800;2,008,400;Gross margin;$1,188,000;$1,138,000;Operating expenses;Selling expenses;$;476,800;$;518,000;Administrative expenses;447,200;423,200;Total operating expenses;$ 924,000;$ 941,200;Income from operations;$;264,000;$;196,800;Interest expense;65,600;39,200;Income before income taxes;$;198,400;$;157,600;Income taxes expense;62,400;56,800;Net income;$;136,000;$;100,800;Earnings per share;$3.40;$2.52;Sanborn Corporation;Comparative Balance Sheets;December 31, 20x8 and 20x7;20x8;20x7;Increase or Decrease;Amount;Percentage;Assets;Cash;$;81,200;$;40,800;Accounts receivable (net);235,600;229,200;Inventory;574,800;594,800;Property, plant, and;equipment (net);750,000;720,000;Total assets;$1,641,600;$1,584,800;Liabilities;and Stockholders' Equity;Accounts payable;$;267,600;$;477,200;Notes payable (short-term);200,000;400,000;Bonds payable;400,000;?;Common stock, $10 par value;400,000;400,000;Retained earnings;374,000;307,600;Total liabilities and;stockholders' equity;$1,641,600;$1,584,800;2. Using;the forms below, prepare common-size income statements and balance sheets for;20x7 and 20x8 (40 points);Sanborn Corporation;Common-Size Income Statements;For the Years Ended December 31, 20x8 and 20x7;20x8;20x7;Net sales;Cost of goods sold;Gross margin;Operating expenses;Selling expenses;Administrative expenses;Total operating expenses;Income from operations;Interest expense;Income before income taxes;Income taxes expense;Net income;Sanborn Corporation;Common-Size Balance Sheets;December 31, 20x8 and 20x7;20x8;20x7;Assets;Cash;Accounts receivable (net);Inventory;Property, plant, and equipment (net);Total assets;Liabilities;and Stockholders' Equity;Accounts payable;Notes payable (short-term);Bonds payable;Common stock, $10 par value;Retained earnings;Total liabilities and stockholders;equity;3. Comment;on the results in requirements 1 and 2 by indentifying favorable and;unfavorable changes in the components and composition of the statements. (30;points);This is the end of Assignment 08.

 

Paper#44485 | Written in 18-Jul-2015

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