Solved by verified expert:Brief Exercise 18-04Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.
December 31, 2020December 31, 2019Accounts receivable$550,200$420,000Inventory870,000600,000Total assets2,858,9002,530,000(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Increase or (Decrease)December 31, 2020December 31, 2019AmountPercentageAccounts receivable$550,200$420,000$%Inventory870,000600,000%Total assets2,858,9002,530,000%Brief Exercise 18-05Using these data from the comparative balance sheet of Rollaird Company, perform vertical analysis.December 31, 2020December 31, 2019Accounts receivable$475,450$419,220Inventory745,300673,200Total assets2,570,0003,060,000(Round percentages to 1 decimal place, e.g. 12.1%.)
December 31, 2020December 31, 2019AmountPercentageAmountPercentageAccounts receivable$475,450%$419,220%Inventory745,300%673,200%Total assets2,570,000%3,060,000%Brief Exercise 18-12 a1-a2The following data were taken from the income statements of Mydorf Company.20202019Sales revenue$6,310,000$6,120,000Beginning inventory970,000910,000Purchases4,391,5004,666,000Ending inventory1,040,000970,000Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.)20202019Inventory turnover times timesCompute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.)20202019Days in inventory days daysExercise 18-02Trayer Corporation has income from continuing operations of $254,000 for the year ended December 31, 2020. It also has the following items (before considering income taxes).1.An unrealized loss of $77,000 on available-for-sale securities.2.A gain of $27,000 on the discontinuance of a division (comprised of a $15,000 loss from operations and a $42,000 gain on disposal).Assume all items are subject to income taxes at a 20% tax rate.Prepare a statement of comprehensive income, beginning with income from continuing operations. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
TRAYER CORPORATIONPartial Statement of Comprehensive Income$$$$Exercise 18-03 (Video)Here is financial information for Glitter Inc.December 31, 2020December 31, 2019Current assets$123,000$100,000Plant assets (net)395,300335,000Current liabilities89,27973,000Long-term liabilities130,59288,000Common stock, $1 par166,959117,000Retained earnings131,470157,000Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
GLITTER INC.Condensed Balance SheetsDecember 31Increase or (Decrease)20202019AmountPercentageAssetsCurrent assets$123,000$100,000$ %Plant assets (net)395,300335,000 % Total assets$518,300$435,000$ %LiabilitiesCurrent liabilities$89,279$73,000$ %Long-term liabilities130,59288,000 % Total liabilities219,871161,000 %Stockholders’ EquityCommon stock, $1 par166,959117,000 %Retained earnings131,470157,000 % Total stockholders’ equity298,429274,000 % Total liabilities and stockholders’ equity$518,300$435,000$ %Exercise 18-06Here are the comparative income statements of Delaney Corporation.Delaney CorporationComparative Income StatementsFor the Years Ended December 3120202019Net sales$611,000$506,000Cost of goods sold487,578424,028Gross profit123,42281,972Operating expenses86,76248,576Net income$ 36,660$ 33,396(a)Prepare a horizontal analysis of the income statement data for Delaney Corporation, using 2019 as a base. (Show the amounts of increase or decrease.) (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
DELANEY CORPORATIONCondensed Income StatementsIncrease or (Decrease)During 202020202019AmountPercentageNet sales$611,000$506,000$ %Cost of goods sold487,578424,028 %Gross profit123,42281,972 %Operating expenses86,76248,576 %Net income$36,660$33,396$ %(b)Prepare a vertical analysis of the income statement data for Delaney Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.3%.)
DELANEY CORPORATIONCondensed Income Statements20202019AmountPercentAmountPercentNet sales$611,000 %$506,000 %Cost of goods sold487,578 %424,028 %Gross profit123,422 %81,972 %Operating expenses86,762 %48,576 %Net income$ 36,660 %$ 33,396 %Problem 18-05A aSuppose selected financial data of Target and Wal-Mart for 2020 are presented here (in millions).TargetCorporationWal-MartStores, Inc.Income Statement Data for YearNet sales$65,357$408,214Cost of goods sold45,583304,657Selling and administrative expenses15,10179,607Interest expense7072,065Other income (expense)(94)(411)Income tax expense1,3847,139Net income$ 2,488$ 14,335Balance Sheet Data (End of Year)Current assets$18,424$48,331Noncurrent assets26,109122,375Total assets$44,533$170,706Current liabilities$11,327$55,561Long-term debt17,85944,089Total stockholders’ equity15,34771,056Total liabilities and stockholders’ equity$44,533$170,706Beginning-of-Year BalancesTotal assets,106$163,429Total stockholders’ equity13,71265,682Current liabilities10,51255,390Total liabilities30,39497,747Other DataAverage net accounts receivable$7,525$4,025Average inventory6,94233,836Net cash provided by operating activities5,88126,249Capital expenditures1,72912,184Dividends4964,217(a)For each company, compute the following ratios. (Enter free cash flow in millions. Round Current ratio to 2 decimal places, e.g. 1.67. Round Debt to assets ratio to 0 decimal places, e.g. 18 or 18%. Round all other answers to 1 decimal place, e.g. 1.6, or 1.6%. Use 365 days for calculation.)
RatioTargetWal-Mart(1)Current ratio:1:1(2)Accounts receivable turnovertimestimes(3)Average collection perioddaysdays(4)Inventory turnovertimestimes(5)Days in inventorydaysdays(6)Profit margin%%(7)Asset turnovertimestimes(8)Return on assets%%(9)Return on common stockholders’ equity%%(10)Debt to assets ratio%%(11)Times interest earnedtimestimes(12)Free cash flow$million$million
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more