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ACC 400 FINAL EXAM

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The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.;Westward Corporation Westward Corporation;Balance Sheet Income Statement;December 31, 2009 For the Year Ended December 31, 2009;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, 2008 For the Year Ended December 31, 2008;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;Select data from fiscal year 2007;Inventory: $100,000;Total assets: $900,000;Stockholders? Equity: $540,000;Instructions;1. Compute the following listed ratios for 2009 and 2008 showing supporting calculations. (5.2 points);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?s financial statements, show your results. (3.0 points);3. Assess the financial performance of Westward, given the analysis tools used in questions 1 and 2 above. (5.3 points);4. If the company wanted to perform industry comparison analysis, what references would you recommend it use? (1.5 points)

 

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