Exercise 13-3 Computation and analysis of trend percents L.O. P120132012201120102009Sales$ 283,880$

 
   

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Exercise 13-3 Computation and analysis of trend percents L.O. P120132012201120102009Sales$ 283,880$ 271,800$ 253,680$ 235,560$ 151,000Cost of goods sold129,200123,080116,280107,44068,000Accounts receivable19,10018,30017,40016,20010,000Compute trend percents for the above accounts, using 2009 as the base year. (Omit the “%” sign in your response.)Exercise 13-7 Common-size percents L.O. P2Sanderson Company s year-end balance sheets follow.At December 31201220112010AssetsCash$30,800$35,625$36,800Accounts receivable, net88,50062,50049,200Merchandise inventory111,50082,50053,000Prepaid expenses9,7009,3754,000Plant assets, net277,500255,000229,500Total assets$518,000$445,000$372,500Liabilities and EquityAccounts payable$128,900$75,250$49,250Long-term notes payable secured bymortgages on plant assets97,500102,50082,500Common stock, $10 par value162,500162,500162,500Retained earnings129,100104,75078,250Total liabilities and equity$518,000$445,000$372,500Express the balance sheets in common-size percents. (Do not round intermediate calculations and round your final answers to 1 decimal place. Omit the “%” sign in your response.)Exercise 13-9 Liquidity analysis and interpretation L.O. P3[The following information applies to the questions displayed below.]Sanderson Company s year-end balance sheets follow.At December 31201220112010AssetsCash$30,800$35,625$36,800Accounts receivable, net88,50062,50049,200Merchandise inventory111,50082,50053,000Prepaid expenses9,7009,3754,000Plant assets, net277,500255,000229,500Total assets$518,000$445,000$372,500Liabilities and EquityAccounts payable$128,900$75,250$49,250Long-term notes payable secured bymortgages on plant assets97,500102,50082,500Common stock, $10 par value162,500162,500162,500Retained earnings129,100104,75078,250Total liabilities and equity$518,000$445,000$372,500The company s income statements for the years ended December 31, 2012 and 2011, follow. Assume that all sales are on credit:For Year Ended December 3120122011Sales$672,500$530,000Cost of goods sold$410,225$344,500Other operating expenses208,550133,980Interest expense11,10012,300Income taxes8,5257,845Total costs and expenses638,400498,625Net income$34,100$31,375Earnings per share$2.10$1.93Section BreakExercise 13-9 Liquidity analysis and interpretation L.O. P3Exercise 13-9 Part 1(1)Compute days’sales uncollected. (Use 365 days a year. Do not round intermediate calculations and roundyour final answers to the nearest whole number.)Exercise 13-9 Part 2(2)Compute accounts receivable turnover. (Round your answers to 1 decimal place.)20122011Exercise 13-9 Part 3(3)Compute inventory turnover. (Round your answers to 1 decimal place.)Exercise 13-9 Part 4(4)Compute days’ sales in inventory. (Use 365 days a year. Do not round intermediate calculations and round your final answers to the nearest whole number.)20122011Problem 13-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3[The following information applies to the questions displayed below.]Selected comparative financial statements of Bennington Company follow:BENNINGTON COMPANYComparative Income StatementsFor Years Ended December 31, 2012, 2011, and 2010201220112010Sales$444,000$340,000$236,000Cost of goods sold267,288212,500151,040Gross profit176,712127,50084,960Selling expenses62,69446,92031,152Administrative expenses40,13729,92019,470Total expenses102,83176,84050,622Income before taxes73,88150,66034,338Income taxes13,76410,3706,962Net income$60,117$40,290$27,376BENNINGTON COMPANYComparative Balance SheetsDecember 31, 2012, 2011, and 2010201220112010AssetsCurrent assets$48,480$37,924$50,648Long-term investments05003,720Plant assets, net90,00096,00057,000Total assets$138,480$134,424$111,368Liabilities and EquityCurrent liabilities$20,200$19,960$19,480Common stock72,00072,00054,000Other paid-in capital9,0009,0006,000Retained earnings37,28033,46431,888Total liabilities and equity$138,480$134,424$111,368Problem 13-1A Part 1Required:Compute each year’s current ratio. (Round your answers to 1 decimal place.)Current ratioDecember 31, 2012:Current ratioDecember 31, 2011:Current ratioDecember 31, 2010:Problem 13-1A Part 2Express the income statement data in common-size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)Problem 13-1A Part 3Express 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.)